With 89% of homes currently using polluting heating systems (such as gas, oil and LPG) the drive to net zero will mean a change to the way we heat our homes. The Scottish Government have consulted on a 'heat in buildings' bill and its proposals include the aim of all homes in Scotland being equipped with a clean heating system by 2045. Although the consultation mentions flexibility and protections for specific groups including those living in rural areas, the absolute deadline for having a clean heating system will still be, according to current proposals, 2045.

Heat pumps are seen as being a clean energy source but perhaps it is more common, currently, to install solar panels on your home. There are 2 types of solar panel: photovoltaic which capture the sun's energy and convert it into electricity; and thermal panels (or tubes) which use energy from the sun to warm water for storage.

Clean heating systems – are solar panels the answer?

There are various things to consider if you intend installing solar panels.

  • Practicalities: It would be necessary to check that the roof can support the weight of the solar panels and whether there are any obstructions (such as tall trees) which may shade the roof. An owner should also consider whether the addition of solar panels may mean that a roof needs to be replaced sooner. If there is sufficient ground around a property and roof installation is not possible, it may be worth considering whether ground mounted panels may be an option. You may have suitable outbuildings on which you could install solar panels too.
  • Contractor: Selecting a reliable installer with a track record and relevant qualifications and insurance will be key; they should advise and assist in connection with practical issues.
  • Tiles (instead of panels): Solar tiles are an emerging technology. They can be less obvious to onlookers and may assist if planning permission (see below) is an issue. Their installation may be more expensive and, possibly, best considered if a roof is being replaced, in any event. Tiles are used in the roof instead of being placed on top of the existing roof structure.
  • Permissions: Owners should also consider whether planning permission is required, in particular if your home is within a conservation area or a national park. If it is a listed building then listed building consent may also be needed. It will be essential to check whether the installation falls within permitted development rights or whether planning and other permissions such as a building warrant are required.
  • Insurance: it is also recommended to check insurance provision so that the panels are covered by your insurance and the investment is protected.

What about excess energy?

Installing a solar battery would mean that the excess energy produced by solar panels can be stored and used at a time when the panels are producing insufficient energy. The alternative is, of course, to export the excess energy to the grid. An owner should investigate what schemes are available (such as the Smart Export Guarantee ("SEG")) to them as a small-scale generator of electricity. What is available will depend on various factors including the connected grid capacity. SEG is a government backed scheme which ensures the owner is paid by their energy supplier for excess renewable energy produced and exported to the grid. Ofgem have produced guidance in relation to SEG which you can access here.

It is also worth bearing in mind that there is a Home Energy Scotland Grant and Loan Scheme (information is available here) which offers loans of up to £5,000 for solar panel installation on residential solar systems. It is thought that, generally, home owners break even on solar panel costs within 20 years of installation.

What are the extra requirements when buying and selling a home with solar panels?

If you are selling your home it is important to ensure the sales particulars mention that solar panels are installed. An up to date EPC should be obtained so that the effect of having solar panels is taken into account.

As a purchaser, full details of the installation (including if possible any surveys carried out at the time), details of the installer and any guarantees / warranties should be obtained from the seller. A purchaser may wish to ensure their surveyor is satisfied that the roof is sufficient to support the panels.

In terms of the transfer, as part of the purchase contract and due diligence exercise, it should be checked whether planning permission was required and all planning permissions, building warrants and listed building consents should be provided by the seller.

It should also be checked whether there are any rights to subsidies and whether the seller has entered into any scheme in relation to the solar panels and that any such scheme/subsidy can be transferred to the purchaser. It should be checked whether any transfer needs to be registered with OFGEM and the seller should be obliged to co-operate with the purchaser in this regard.

It will also be important to ensure that there are no outstanding obligations or financial liabilities attached to any solar panels.

We still await the Heat in Buildings Bill being published but it is safe to say that how we heat our homes has never been more important.

Contributor

Clare Dunlop

Senior Associate