Jessi Tamber writes for Property Week on how landlords can navigate the risks of solar panel installations

The installation of solar panels is increasingly popular as businesses seek to reduce energy costs and meet their environmental objectives. This trend is evident in the logistics sector where expansive warehouse roof spaces offer ample space for solar installations.

It is further supported by the government, which recently published a strategy to encourage a ‘rooftop revolution’ by accelerating the deployment of solar energy.

Jessi Tamber, Associate in our Real Estate team, provides advice to landlords in an article for Property Week. In the piece, Jessi explains that there is often "mutual benefit" in solar panel installations, but that landlords must carefully navigate the potential pitfalls associated with granting consent for solar panel installations and the legal, financial and practical considerations involved. She explains: 

[...] the responsibility for repairing and maintaining the solar panel installation must be clearly defined and should fall to the PV provider or the tenant. The lease should include reinstatement obligations to ensure the landlord can rely on the tenant to remove the solar panels and restore the roof to its original condition. These provisions are crucial and often required by lenders to secure funding.

Further considerations include:

• Establishing clear contractual responsibility to protect the landlord from unforeseen liabilities and specify whether the tenant or the PV provider will be responsible for the costs and completion of the works.
• Seeking warranties or indemnities from the installing party and/or their professional team to ensure direct recourse is available in the event of damage or defects. And also seeking indemnities from PV providers to cover any damage resulting from the solar panel installation or ongoing maintenance
• PV providers often requiring landlords to enter into ‘direct funding agreements’ - these can impose specific obligations on landlords and must be reviewed carefully.
• The common requirement for landlords to enter into a "power-sharing agreement" with the PV provider. This creates a risk that the landlord could become liable for the power-sharing agreement, resulting in significant financial burdens.

Read the full article in Property Week here.