Solar FIT Equity Release

Written-by

Richard Burdett

Reviewed-by

Richard Burdett

Updated on

Sep 04, 2024

Solar FIT Equity Release

• Cash in your Feed in Tariff and receive a tax free lump sum
• Free maintenance and repairs on your solar array over the period of your FiT
• Continue to benefit from cheaper electricity bills and retain ownership of your solar panels
   

If you have solar panels installed and benefit from the Government’s Feed in Tariff, then there is some good news. Solar Release Equity is becoming a popular way for homeowners to get a lump sum by selling off their Feed in Tariff to a third party, without undertaking a more costly leasing arrangement. At Renewable Energy Hub, we’ve teamed up with the UKs biggest platform for lease-free, solar pay back.

What is SER?

The Feed in Tariff was introduced as an incentive for homes and businesses to take up renewable technologies such as solar PV. It provides a certain payment for each kWh or power your array produces over the lifetime of the agreement. For most solar owners, this means a regular payment for the energy they produce, making it good for a strong return on investment. Add into this the availability of cheap electricity and it’s no wonder thousands of home owners have gone down the solar PV route. Solar Equity Release gives you the opportunity to release the power of those payments in one go by selling access to your Feed in Tariff and getting a lump sum amount in return. Essentially, this is a financial product that is used to release equity. The lump sum payment is tax free and is based on the amount of electricity your system produces and the level of FiT that it receives.

Who Runs It?

Solar Equity Release (SER) is backed by a massive investment fund. Our partner specialises in funding renewable energy projects in the UK and in countries such as Africa. The SER is the first product of its kind in the UK because it does not require the conversion to a lease that means you no longer own your array. All the SER does is buy the right to have your future FiT payments. You remain as the owner of your solar panels. In addition, you get free access to the asset management of Ecovision. They currently support over 9,000 rooftop solar installations in the country and manage an installed capacity of some 25 MWp. With this addition, you get a smart meter installed at no cost to yourself which allows Ecovision to monitor your system and realise the potential for output. It means your system will be monitored and serviced for no cost during the lifetime of the FiT.

Why You Should Apply?

There are plenty of reasons why you might benefit from a lump sum of money. You might be moving into a new property and want to offset your mortgage or reduce the strain on your finances. You may be selling a property and want to get the advantage of your FiT before you leave. You might just need cash for some reason like a building extension, the holiday of a lifetime or a new car. You may just want to invest that lump sum for the future. Whatever the reason, joining SER is as easy as picking up the phone, filling in a few forms and making the decision to go ahead.

What Are the Advantages?

• Firstly, you get a lump sum payment. If you are accepted and an offer made, you will normally get that tax-free cash payment within 14 days of agreeing to the terms.
• The SER does not take over ownership of your solar panels. They are still yours and there is no leasing arrangement put in place.
• You still benefit from the free electricity that your system generates so you continue to cut your costs and enjoy all those energy price savings.
• You don’t have to worry about the ongoing maintenance of your solar PV system. A smart meter service is installed by Ecovision and your system is monitored to make sure that it produces at full capability and capacity.
• You don’t have to worry about the costs of repairs as they are handled for you. If something breaks down on your system, it can cost you serious money – replacing an inverter could set you back about £2,000 and even a call out can mean paying a couple of hundred pounds. This is all covered in the SER agreement. You don’t pay a thing for the lifetime of the FiT contract.
• If you are entering into a leasing arrangement, then you normally have to contact your mortgage provider and get permission. Because you are only signing over the FiT payments, you don’t have to contact your mortgage company when you decide to release the equity.
   

What Documentation is Needed?

It’s easy to apply for SER and you can get a reply and decision within a short space of time. All we need to see once you have received your initial quote are:

• 12 months’ FIT statements (4 quarterly statements) clearly showing generation during the period and tariff per kWh
• Copy of MCS certificate
• Photo of Generation Meter reading
• Proof of purchase of the PV system
• 2x forms ID , for example a utility bill and one photo ID such as a driving licence or passport
• Completion of the contract paperwork
• Completion of the Good Energy Form
   

How Do I Find Out More?

It costs nothing to get a valuation of what your FiT is worth and there is no obligation to take it any further. All you need to do to get started is give us a call on 01392 693900 and have your latest generation meter reading and the date your array was installed. We can then assess how much you would expect to get and then guide you through the entire process. If everything goes smoothly, you could be receiving a cheque for your FiT in just 14 days. Contact us right now to find out more.