Plug-in solar generates a powerful headache for landlords

Householders looking to cut soaring energy bills may welcome the news that small-scale solar power generation has just become a little easier to install, with the relaxation of planning permission rules, combined with affordable products turning up in the middle aisle of discount supermarkets.

But for landlords, the new rules could spark a powerful source of problems when it comes to what tenants can put on their property.

The new rules allow plug-in solar systems generating up to 800 watts to be installed simply by connecting to a standard household socket, potentially making solar generation an option for homes where a full rooftop installation isn't practical or is too expensive.

For homeowners, the change is relatively straightforward.  But for landlords, taking time to tackle the detail now will pay off later.

Richard Bland, property specialist at Carter Bells Kingston, explained: “The ability to plug a small solar system into a domestic socket sounds simple, but tenants cannot assume it means they can just buy one and put it up without permission.

“The first port of call should be the tenancy agreement or lease. Many will require landlord consent for alterations or installations, but landlords probably need to think beyond their current agreement, if they are going to properly consider issues such as where equipment can be attached, who is responsible for maintenance and what happens when the tenancy ends.”

In England, changes to permitted development rules mean plug-in solar installations can generally be installed without planning permission, subject to conditions and exceptions. Scotland and Wales have their own planning regimes, so the position is different.

But planning permission – or the absence of it – doesn't remove other obligations, such as Building Regulations approval and any equipment must meet the relevant safety requirements.  Users must also register with the UK Plug-In Solar portal and comply with the regime, while landlords should check whether their buildings insurance covers tenant-installed generation equipment and whether their insurer needs to be notified.

There could also be a wider issue for property owners as the technology becomes more popular. Germany, where plug-in solar is already well established, has taken steps to make it harder for landlords to refuse installations without good reason.  The UK Government has indicated that it may consider similar interventions if landlord consent becomes a barrier in this latest move towards renewable energy.

Richard Bland added: “Technology is moving fast in renewables, and property agreements need to catch up. Standard leases may say plenty about alterations, fixtures and reinstatement, but are likely to be under-powered when it comes to attaching a small solar panel to a balcony or outside wall.

“Landlords don't necessarily need to change their leases overnight, but it would be sensible to review whether existing agreements provide enough protection.  A review can also pave the way to a conversation with tenants, ideally before any equipment has been bought and installed.”