COMMERCIAL SOLAR PV BUY BACK – FREQUENTLY ASKED QUESTIONS
We have partnered with a fund who manage a Commercial Solar PV Buy Back Scheme on behalf of it’s investors. Below you will find answers to questions and concerns regarding the scheme. If you need further information please feel to make contact.
How do you value my system?
Your system value is based on a number of specific variables:
- Size of system (kWp)
- Installation / Feed-in Tariff Accreditation date
- System generation in kWh since installation
We then undertake a technical survey of the system and a final purchase value is confirmed once this has been completed.
How much will it cost me to sell my system to you?
Nothing. REI is responsible for all costs associated with the transaction.
Who owns the solar PV system?
REI and its Investors will own, monitor, manage and maintain the solar PV system that is installed on your roof.
Will I still receive free electricity?
Yes, unless you opt for the Power Purchase Agreement.
How much of the electricity which is generated by the system can I use, free of charge?
What is the Power Purchase Agreement (PPA)?
Under our Power Purchase Agreement, you will be eligible to receive a higher initial capital payment from us than under our free electricity model. In return, you will enter into a PPA under which you will receive discounted (but not free) electricity which is generated by the solar PV system, which you consume on site, for the remaining period of your Agreement.
What if you find something wrong with the system during your technical visit?
We will highlight any issues to you, and if possible resolve them during our visit, at our cost. Where this is not possible, or the issues require more involved remedial works, we will discuss with you. This could impact the valuation of the system.
I have a mortgage on the property. Will I have to tell the lender I am selling my system and will they approve the installation?
Yes. Before leasing your roof space we will seek consent from any lender who has a legal restriction over the property on your behalf. We have direct experience with most banks and as they are familiar with these schemes, it is extremely rare for them to object.
Why do I have to sign a lease and what does it mean when you say you will have a ’legal charge’ on my property’?
The signed lease is registered at HM Land Registry and the details recorded against the Title Register for your property. This provides us with a form of security as a tenant in that the lease terms are transferred to any new owner, upon sale of the property, for the remaining period of the lease.
My business partner and I have a joint mortgage on the property; do we both need to sign the lease?
Yes. Whoever is registered at the Land Registry as being ‘The owner/s’ of the property will be required to sign the documentation.
What happens if we move or sell our property?
If you move or sell your property within the 20-year term, the lease of the roof space is transferred to the new owner and they will then continue to enjoy the benefits of the free clean, green electricity the system generates. If a PPA exists, the benefits of this will transfer, under a new Agreement to the new owner.
What if we want to extend or develop our building?
If your development plans necessitate the removal of the solar PV system, we will agree with you a period of time during which you are able to undertake the work, on the basis that the solar PV system is re-instated afterwards. We will undertake the removal and reinstatement of the system at our cost; the repair / development work to your roof is to be undertaken by you at your expense.
What happens if we don’t use all the electricity the solar PV system generates?
At times of peak generation, if you do not have sufficient demand on-site, the excess power is exported to the national grid. Equally, when the solar PV system is generating less than your total demand on site, the shortfall is made up through importing electricity from the national grid as normal. Depending on the size of your roof and your electricity demand, you should reasonably expect to consume most or all of the electricity generated from the solar PV system.
Does it matter if I have a Finance Agreement on the solar PV system?
We may make you an offer to purchase your solar PV system even though it is the subject of a Finance Agreement between you and a third party, provided that we receive a written statement of the amount required to settle the Agreement in full from the third party.
Will I still have to insure the system once you own it?
REI insures the solar PV equipment itself. You should notify your insurer that you have sold the system to REI, and this could help reduce your premium.
What happens if we need to repair our roof during the term of the lease?
If your repair necessitates the removal of part or all of the solar PV system, we will undertake the removal and reinstatement at our cost. The repair work to your roof is undertaken by you at your expense.
What if we want to buy the PV system back from you during the term of the lease and receive the Feed-in Tariff ourselves again?
We can provide you with the costs of buying the system from us during the term of the lease.
What if we have a fire, natural disaster or the system is vandalised?
Our all-risks insurance will cover any damage to the system that results from such an event.
What happens if the system breaks down or develops a fault?
Our remote monitoring equipment will alert us to a fault immediately and it is our responsibility to resolve the problem under the terms of our maintenance contract.
How long does it take for the sale to be completed and for me to receive my cash?
The typical process takes between 4 and 6 weeks to complete in full.
Why should we trust your Company to be able to offer this solution, for up to 20 years?
REI and its Investors have been operating in this sector since 2011 and are experienced developers, owners and operators of electricity generating solar PV systems. The business has relied on the continued high performance of our clients’ solar PV systems since 2011.
For further information or if you wish to discuss a Solar PV Buy Back please complete the contact form.