Selling a House with Solar Panels: Owned vs Leased

Solar panels are fitted on more than one million UK homes, and that number continues to grow as energy costs remain high and government incentives encourage renewable energy adoption. If you are selling a property with solar panels, the sale process is largely the same as any other house sale — but the panels themselves introduce additional questions that the buyer's solicitor will raise during conveyancing enquiries.

The most important factor is whether the panels are owned outright or leased from a third-party company. Owned panels are relatively simple to deal with. Leased panels add legal complexity, potential mortgage difficulties, and a longer list of documents to prepare. This guide covers both scenarios in detail, along with everything you need to know about tariff transfers, certifications, and the enquiries your buyer's solicitor will raise.

Owned vs leased solar panels: the key difference

Before anything else, you need to establish whether your solar panels are owned or leased. This single distinction shapes the entire conveyancing process for the panels.

Owned solar panels

If you paid for the solar panels yourself (whether outright or through a personal loan that has since been repaid), you own them. They are part of the property, like a new kitchen or a boiler. When you sell, the panels transfer with the house as fixtures. The buyer's solicitor will want to see documentation confirming the installation was done properly, but there is no third-party lease agreement to worry about.

Leased solar panels

If a company installed the panels for free (or at a heavily subsidised cost) in exchange for a long-term agreement, you almost certainly have a lease or power purchase agreement (PPA). Under these arrangements, the company owns the panels and you either pay rent for them or buy the electricity they generate at a set rate. Lease terms typically run for 20 to 25 years. When you sell, the lease must be assigned to the buyer — the buyer takes over the remaining term and its obligations.

Here is how the two scenarios compare from a conveyancing perspective:

Selling with owned solar panels

If your panels are owned, the process is relatively straightforward. The panels are treated as fixtures and fittings that convey with the property. However, you still need to provide documentation and answer specific enquiries from the buyer's solicitor.

MCS certification

The Microgeneration Certification Scheme (MCS) is the quality assurance standard for solar panel installations in the UK. If your panels were installed by an MCS-certified installer, you should have an MCS certificate confirming the installation meets the required standards. MCS certification was mandatory for registering for the Feed-in Tariff and is currently required for the Smart Export Guarantee.

The buyer's solicitor will ask for this certificate. If you cannot locate it, you can request a replacement from the MCS directly or from your original installer. If the installation predates MCS or was not MCS-certified, you should disclose this and may need to obtain an independent electrical inspection to satisfy the buyer.

Feed-in Tariff (FiT) transfer

The Feed-in Tariff scheme closed to new applicants on 31 March 2019, but existing registrations continue to receive payments for their full 20-year or 25-year term. If your solar panels are registered under the FiT, the payments transfer with the property to the new owner. The FiT consists of two elements:

• Generation tariff — a payment for every kilowatt-hour (kWh) of electricity generated, regardless of whether you use it or export it.
• Export tariff — a payment for the electricity you export to the grid (typically deemed at 50% of generation unless a smart meter measures actual exports).

To transfer the FiT, you need to notify your FiT licensee (the energy company that makes the payments) of the change of ownership. Ofgem's Central FiT Register is updated to reflect the new owner. The process is administrative rather than complex, but it must be done — the buyer cannot receive FiT payments until the transfer is completed. Include details of your FiT licensee, the installation date, and the tariff rates in your sale documents.

Smart Export Guarantee (SEG)

The Smart Export Guarantee replaced the FiT export element for installations from 1 January 2020. Under the SEG, energy suppliers with more than 150,000 domestic customers must offer a tariff for exported electricity. Unlike the FiT, the SEG is not a long-term guaranteed contract — homeowners sign up with a supplier and can switch at any time.

When selling, there is no formal transfer process for the SEG. The buyer simply signs up with their preferred supplier after completion. However, you should provide the buyer with the MCS certificate (which is required for SEG eligibility) and details of the smart meter if one is installed, as a smart meter or export meter is needed to receive SEG payments.

Electrical certificates and warranties

Your sale documents should include:

• The electrical installation certificate (issued at the time of installation, confirming the system meets BS 7671 wiring regulations)
• Panel manufacturer warranties (typically 25 years for output performance)
• Inverter warranty (typically 10 to 15 years; inverters are the component most likely to need replacement)
• Installer workmanship warranty (if applicable and transferable)
• Roof structural survey (if one was carried out before installation)

These documents demonstrate that the system was installed correctly and give the buyer confidence that the panels will not cause problems. If any warranties have expired, note this honestly in your disclosure documentation.

Selling with leased solar panels

Leased solar panels introduce significantly more complexity. The panels are not yours to sell — they belong to the leasing company — so the lease agreement must be dealt with as part of the conveyancing process. This is the area where sales can slow down or, in some cases, encounter serious difficulties.

Lease assignment

The lease or PPA must be assigned to the buyer. This means the buyer agrees to take over the remaining term of the agreement and its obligations (rent payments or electricity purchase commitments). The assignment process typically involves:

1. Contacting the leasing company to notify them of the sale and request the assignment paperwork.
2. The leasing company reviewing the buyer's details and agreeing to the assignment (they may carry out a basic credit check on the buyer).
3. Both parties (or their solicitors) signing the deed of assignment.
4. The leasing company confirming the transfer is complete.

This process can take two to four weeks, so it is essential to contact the leasing company as soon as you accept an offer. If you wait until the buyer's solicitor asks about the panels, the assignment process sits directly on the critical path and delays exchange.

Title charges and mortgage complications

Many solar panel leases include a charge or restriction registered against the property title at HM Land Registry. This protects the leasing company's interest in the panels (which they own) and ensures the lease cannot be ignored when the property is sold.

A title charge can cause problems with the buyer's mortgage lender. Some lenders will not lend on a property with a third-party charge related to solar panels, while others will accept it provided the lease terms are reasonable. The UK Finance Lenders' Handbook does not provide a blanket position on leased solar panels, so each lender applies its own criteria. Common conditions that lenders look for include:

• The lease term does not extend significantly beyond the mortgage term
• The lease payments are reasonable and fixed or capped
• The lease includes adequate provisions for removal at the end of the term
• The leasing company carries appropriate insurance
• The roof access provisions do not give the leasing company unreasonable rights over the property

If the buyer's lender objects to the lease terms, this can stall or even collapse the sale. You should share the lease agreement with your solicitor at the outset so potential issues can be identified early.

What if the buyer refuses to take on the lease?

If a buyer does not want to take on the lease, you have limited options:

• Buy out the lease. Some leasing companies allow early termination for a lump sum. This can be several thousand pounds depending on the remaining term. Once bought out, the panels become yours and transfer with the property as fixtures.
• Ask the leasing company to remove the panels. Some agreements include a removal clause, but this may still involve a cost, and you will need to ensure the roof is made good afterwards.
• Negotiate with the buyer. You may agree to contribute towards the lease costs for a set period, or adjust the sale price to account for the obligation.

What the buyer's solicitor will ask

Expect the buyer's solicitor to raise specific enquiries about the solar panels. Being ready with answers and documentation upfront prevents delays. Typical enquiries include:

You will disclose the existence of solar panels on the TA6 Property Information Form, specifically in the sections covering alterations and improvements, guarantees and warranties, and services. If the panels are leased, the lease agreement should be provided as part of the draft contract pack. For a full breakdown of what to disclose, see our guide on what to disclose when selling a house.

EPC impact and energy performance

Solar panels directly improve your Energy Performance Certificate (EPC) rating. The EPC assessment calculates the property's estimated energy costs, and solar panels reduce these by generating free electricity. A typical 4 kW domestic system can improve an EPC by one or two bands — for example, lifting a property from band D to band C or from band C to band B.

This matters for several reasons:

• Buyer attractiveness. Energy efficiency is increasingly important to buyers. A higher EPC rating signals lower running costs.
• Green mortgage products. Several UK lenders offer preferential rates for properties with an EPC rating of A or B, which solar panels can help achieve.
• Regulatory direction. The UK government has signalled a long-term goal of improving the energy efficiency of the housing stock. Properties with better EPC ratings are better positioned for any future regulatory requirements.

The EPC improvement applies regardless of whether the panels are owned or leased — the assessment considers the energy generated, not who owns the equipment. Make sure your EPC is up to date and reflects the solar installation.

Roof condition and structural considerations

The buyer's surveyor will inspect the roof as part of their survey, and solar panels can complicate this. Panels cover a significant area of the roof, making it difficult to visually assess the condition of the tiles or slate underneath. Common concerns include:

• Roof age and condition. If your roof was already ageing when the panels were installed, the buyer may worry about having to remove and reinstall the panels to carry out roof repairs. This is expensive — scaffolding, removal, storage, and reinstallation can cost £1,500 to £3,000 or more.
• Mounting and fixing damage. Poorly installed mounting brackets can cause leaks. The MCS certificate and electrical installation certificate provide reassurance that the installation was done to standard.
• Weight loading. Solar panels add weight to the roof structure. For most modern roofs this is not an issue, but older properties or those with non-standard roof construction may need a structural assessment.

If you had a structural survey or roof assessment carried out before installation, providing this to the buyer can pre-empt concerns and reduce the likelihood of additional enquiries.

Insurance considerations

Your buildings insurance should cover the solar panels. If you own the panels, they are part of the property and should be included in your buildings insurance sum insured. You should have notified your insurer when the panels were installed — if you did not, do so now, as failure to disclose a material change to the property could invalidate your cover.

If the panels are leased, the leasing company typically carries its own insurance on the panels themselves, but your buildings insurance still needs to cover any damage the panels might cause to the property (for example, a leak caused by a mounting bracket). The buyer's solicitor may ask for confirmation of both policies.

When answering insurance-related enquiries, confirm:

• Your buildings insurer is aware of the solar panels
• The panels are included in the sum insured (for owned panels)
• The leasing company's insurance details (for leased panels)
• There have been no claims related to the solar installation

Planning permission and building regulations

Most domestic solar panel installations in England and Wales fall under permitted development rights and do not require planning permission, provided they meet certain conditions. Under the Town and Country Planning (General Permitted Development) (England) Order 2015, solar panels are permitted development if:

• They do not protrude more than 200mm beyond the plane of the roof slope
• They are not higher than the highest part of the roof (excluding the chimney)
• They are not installed on a wall or roof that fronts a highway, if the property is in a conservation area or World Heritage Site
• The property is not a listed building ( listed building consent is required for any external alteration to a listed building)

If your property is in a conservation area, an Area of Outstanding Natural Beauty (AONB), a National Park, or is a listed building, planning permission or listed building consent may have been required. The buyer's solicitor will ask about this, and if you cannot evidence that the correct permissions were obtained, an indemnity insurance policy may be needed to cover the risk of enforcement action.

Regarding building regulations, electrical work associated with solar panel installation must comply with Part P of the Building Regulations. MCS-certified installers are registered under a competent person scheme, which means they can self-certify their work without a separate building control inspection. The MCS certificate serves as evidence of compliance.

How to prepare for a smooth sale

The key to selling a property with solar panels without delays is preparation. Gather your documents early, understand whether your panels are owned or leased, and get ahead of the enquiries the buyer's solicitor will raise. Here is a practical checklist:

1. Confirm ownership status. Check whether you own the panels or have a lease/PPA. If you are unsure, check your property title at HM Land Registry for any charges related to solar panels.
2. Gather all documentation. Collect the MCS certificate, electrical installation certificate, warranties, and any planning or building regulations evidence. For a full list of what you need, see our guide on documents needed to sell a house.
3. Contact the FiT licensee (if applicable). If your panels are registered for the Feed-in Tariff, get your latest FiT statement and confirm the transfer process with your licensee.
4. Contact the leasing company (if applicable). Request the assignment paperwork and ask about the process, timeline, and any fees. Do this before you list, not after you accept an offer.
5. Check your insurance. Confirm your buildings insurer is aware of the panels and they are included in your cover.
6. Update your EPC. If your EPC was issued before the panels were installed, get a new one that reflects the improved energy performance.
7. Disclose fully on the TA6. Declare the panels in the relevant sections of the TA6 form and provide supporting documents with your draft contract pack. Thorough disclosure reduces enquiries and builds buyer confidence.
8. Brief your solicitor. Make sure your solicitor knows about the panels from the outset, including whether they are owned or leased, so they can prepare for the relevant enquiries. See our guide on conveyancing costs to understand how additional work might affect your fees.

Sources

• Ofgem — Feed-in Tariffs scheme and Central FiT Register (ofgem.gov.uk)
• Ofgem — Smart Export Guarantee guidance (ofgem.gov.uk)
• MCS (Microgeneration Certification Scheme) — mcscertified.com
• GOV.UK — Feed-in Tariffs: get money for generating your own electricity
• GOV.UK — Permitted development rights for householders: technical guidance
• Energy Saving Trust — Solar panels and energy efficiency (energysavingtrust.org.uk)
• Town and Country Planning (General Permitted Development) (England) Order 2015 — legislation.gov.uk
• UK Finance Lenders' Handbook — ukfinance.org.uk
• HM Land Registry — Practice Guide 62: Charges (gov.uk)
• Building Regulations Part P (Electrical Safety) — gov.uk

Frequently asked questions