Locate rooftop solar panels on commercial buildings

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Living in an era where the UK has concerns about the security of energy supply, rising energy costs, and the need to meet environmental considerations, looking to innovative energy back-up alternatives makes sense.

Since the shock of the war in Ukraine, it has become increasingly clear that the way UK energy is generated and distributed is not going to be all that sustainable long-term. Lack of investment has left the country vulnerable to future supply shocks, the global supply chain system is too unstable to be relied on and there’s little time left for the government to rebalance.

The country’s reliance on fossil fuels is considered damaging to the environment and the UK’s legally binding Net Zero target for 2050 means that viable and sustainable alternatives must be found.

Individual businesses also are under pressure to reduce their carbon footprints and meet emission targets dictated by UK legislation, as set out in the domestic and non-domestic Minimum Energy Efficiency Standard (MEES).

These regulations set a minimum energy efficiency level for private residential and commercial buildings, measured, monitored and controlled by the Energy Performance Certificate (EPC) regime.

Over recent years landlords, tenants and company managers have spent much time and energy thinking about these issues and how they can (1) meet the regulatory requirements in the must economical and efficient way, (2) reduce energy costs and (3) secure long-term supplies.

Potential future energy shocks and disruptions mean that these possibilities cannot be ignored. They would be very costly to any business operation, and potentially fatal, so the hunt for viable back-up alternatives cannot be delayed.

For commercial buildings, depending on size, location and orientation a large roof space often lends itself ideally to the siting of solar panels. These panels sited on rooftops are usually unobtrusive and every effective. As they are coming down in price through economies of scale, they offer an increasingly less expensive, clean and reliable alternative energy source.

There are vast swathes of commercial roof-spaces across the UK ideally suited to capturing the sunlight necessary to produce clean energy; energy used to power equipment, light buildings, to feed back into the grid for financial returns, or store in batteries to use when the sun doesn’t shine.

Attractive for tenants

Commercial buildings of the future need to be sustainably energy efficient, they also need to be attractive to tenants, if they are to let easily and quickly. This is major concern for landlords. It means that substantial investment is needed, and it means investment is needed soon if these buildings are to be compliant.

A matter of some urgency

The next two or three years will be crucial in making the right decisions as to what’s needed for your commercial buildings. With inflation pushing up prices by the day, and your competitors looking at similar solutions, it would be wise to act sooner rather than later.

It’s pretty obvious when you look at the amount of square footage represented by rooftops on commercial buildings, some of which occupy vast areas, solar is an ideal solution. Using this roof space as opposed to having large swathes of solar farms occupying green fields, it means we can greatly reduce the impact on our visible environment and on agriculture.

There is already an increasing trend for businesses to adopt this solar rooftop solution. It might mean a substantial initial investment, but the payoff is substantial; it has the potential to increase the value of a commercial buildings as well as the desirability of a building for tenants. Landlords / tenants would receive substantial savings in their on-going energy costs.

International commercial law firm Hill Dickinson LLP’s Sam O’Doherty, writing for Lexology.com says :

“By generating their own electricity, businesses are able to significantly reduce their reliance on the national grid, and therefore reduce their energy bills. This is particularly important for businesses that operate during daylight hours, being the time that the solar panels will be generating the most electricity. An optional extra could be storing this energy on-site, but alternatively feeding it back into the grid can reap further financial benefit where certain schemes [Government schemes] can provide financial incentives for businesses that generate their own renewable energy, which can help to offset the initial cost of the installation.

“By generating their own renewable energy, businesses can substantially reduce their carbon footprint which will contribute to the UK’s efforts to tackle climate change. This is particularly important for businesses that operate in sectors with high carbon emissions, such as manufacturing and transportation, or where premises are comprised of multiple units that generate additional emissions through intensive use or by the use of vehicles to/from them.

“Businesses that use rooftop installations to generate their own renewable energy are seen as more environmentally friendly and socially responsible… which can be attractive to potential buyers or future tenants. Rooftop solar panels can act as a marketing tool, demonstrating a business’s commitment to sustainability and helping to attract customers or clients who value environmentally friendly practices.”

Energy Savings

Recent studies over a number of years have shown that substantial savings can be made when businesses have solar panels on the commercial buildings. According to one study by the The Solar Trade Association (STA) a 20 per cent saving on energy costs is possible, and a study by the Carbon Trust found that the average payback period for rooftop solar installations was between 6 and 8 years.

A more recent study by the STA in 202 found that on average a 50kW rooftop solar installation in the UK can generate savings of around £8,000 to £10,000 per year, whereas larger installations of up to a 250kW installation can potentially generate savings of up to £40,000 per annum, according to Lexology.com.

According to Sam O’Doherty there are several government schemes and grants available to businesses to financially assist with commercial solar rooftop installations? These include:

Smart Export Guarantee (SEG)

“This scheme requires energy suppliers to offer a tariff for the excess energy generated by small-scale, low-carbon generators, including rooftop solar installations. This means that commercial landlords can sell the excess energy generated by their rooftop solar installations to energy suppliers and receive payment for it.”

Renewable Heat Incentive (RHI)

“This scheme provides financial incentives to commercial landlords who install renewable heating systems, including solar thermal systems. The scheme is also open to non-domestic properties and provides payments for up to 20 years. The amount of payment received through the RHI is calculated based on the amount of renewable heat generated and is paid quarterly. The payments are designed to cover the cost of the installation and provide a return on investment for the property owner.”

Energy Efficiency Financing Scheme

“This scheme provides loans to commercial landlords who want to install energy-efficient measures, including rooftop solar installations. The loans are provided by the Carbon Trust and are designed to help businesses reduce their energy bills and carbon emissions.”

Carbon Trust Green Business Fund

“This scheme provides up to £10,000 of capital contribution towards the installation of energy-efficient equipment, including rooftop solar installations. The scheme is open to small and medium-sized businesses in the UK and is designed to help businesses reduce their energy bills and carbon emissions. The Fund also provides free energy assessments, training, and advice to those businesses.”

Industrial Energy Transformation Fund (IETF):

“This scheme provides grants to businesses in the UK to support the development of energy-efficient technologies and processes. The scheme is open to businesses in the industrial sector, including those that install rooftop solar panels, and provides up to 50% of the project costs. To qualify, the premises must be used for an industrial business (such as engineering or manufacturing), must provide a demonstrable commitment to carbon reduction and must meet certain, IETF specific eligibility criteria.”

Feed-in Tariff (FIT)

“This applies once energy is being generated from a rooftop installation. FIT acts as a guarantee for commercial landlords that they will receive a set price for the electricity they generate and feed back into the grid. Steady income, and also the assistance offered by regular payments in offsetting installation costs associated with renewable energy systems, can often be what makes an installation financially viable for commercial landlords.(Note that FIT is not currently deemed compatible with SEG).”

The Feed-in-Tarif

Through the operation of the FIT, return on investment can be pretty much immediate once an installation is completed. Landlords / tenants can immediately monetise the energy their solar panels are generating by selling their excess energy generated back into the grid. They will receive credits for this and therefore only pay for their net energy usage.

Carbon Credits

After taking all the measures they reasonably can to reduce their carbon dioxide emissions (carbon footprint), UK businesses that are producing excess carbon dioxide are required to purchase carbon credit offsets – often from forestry companies. These carbon credit tradable permits allow businesses producing their own clean energy via solar panels to earn money in this way as well.

Improved environmental credentials and business reputation

Sometimes overlooked in all this scenario is the businesses’ reputation and the improved “image” value of property owners and businesses investing in these energy saving innovations – businesses are increasingly being judged on their contribution to energy saving and environmental protection.

With acknowledgments to Hill Dickinson LLP, Sam O’Doherty, and Lexology.com

View Full Article: Locate rooftop solar panels on commercial buildings

Daily Telegraph wants to speak to landlords selling because of EPC regulations

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The Telegraph personal finance reporter, Alexa Phillips, would like to speak to landlords who are selling properties now because of concerns about the costs of higher EPC ratings and future tightening of the regulations to a minimum C rating.

How is the sale price going and have buyers used your EPC ratings to negotiate?

View Full Article: Daily Telegraph wants to speak to landlords selling because of EPC regulations

HOW is he still operating? ‘Intolerable’ landlord fined for second time

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A rogue landlord has been handed a hefty fine for renting out a dangerous and mouldy property – his second in two years.

Hazmar Fauz, of The Avenue in Welwyn, admitted several serious defects at the house in London Road, Luton, when he appeared before magistrates and was fined £10,800 with £4,888 costs.

Fauz was previously prosecuted for HMO offences in 2021 when he was fined more than £20,000, making a mockery of the Government’s attempts to clamp down on rogue landlords who give legitimate BTL investors a bad name.

Although the property in London Road, Luton (pictured) was licensed, it had a litany of dangerous features including rotting and unsecured flooring obstructing fire pathway escapes, missing and covered heat detectors, disconnected door self-closing devices, an ill-fitting fire door and a general lack of fire detection apparatus.

Gross neglect

The court heard that along with the presence of damp and mould and a failure to display the correct certificates and contact details at the property, these failings amounted to a gross neglect of Fauz’s responsibilities to the tenants and a breach of his licence.

Councillor Tom Shaw (pictured), Luton council’s portfolio for housing, says it’s another good result for Luton Council’s Rogue Landlord Project – and for tenants throughout the town. “It is a reminder to all landlords that with their position comes legal responsibility,” he explains.

“In this case it was especially worrying that the inactivity of the landlord placed the tenants at risk of significant harm. This is intolerable.”

He adds: “It is simply not enough to make legally binding commitments on paper and then fail to stick by them. Being a landlord means regularly inspecting the premises and then ensuring issues are dealt with immediately and standards are maintained.”

View Full Article: HOW is he still operating? ‘Intolerable’ landlord fined for second time

LATEST: Gove moves to reassure landlords ahead of reform bill changes

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Housing secretary Michael Gove has moved to reassure private landlords that the Government backs them, describing their work as ‘vital’ to a functioning rented sector.

His column for the NRLA members magazine appears to be an attempt to quell criticism of his Renters (Reform) Bill launched in parliament during May.

Awaiting its second reading in parliament, the bill will bring in huge changes to the way landlords and letting agents let and manage properties including a wholesale overhaul of regulation, rental contracts and eviction law.

From his comments, it’s obvious that Gove is acutely aware that landlords are getting fed up with being painted as the ‘bad actors’ in the private rented sector, emphasising that they offer tenants “with flexibility and choice, and the value for money options that go with them”.

Shelter

He also points out that a rented home can be “at the same time a home and an investment, a valued asset and precious security, a shelter and haven” and that he wants to “strike a balance” between landlord and tenant needs.

Turning to evictions, Gove says he wants the looming abolishment of Section 21 evictions, and the introduction of beefed up Section 8 notices, to ensure the law is there to protect victims whether that’s the landlord or tenant.

He also pledged to provide “more comprehensive grounds for landlords to recover properties” and to make it “easier to repossess them where tenants are at fault” and to use digital platforms to speed up the process of getting repossession claims through the legal process.

Ben Beadle, Chief Executive of the National Residential Landlords Association, says: “We welcome the housing secretary’s commitments, and his recognition of the importance of individual landlords.

“As he rightly notes, the Renters (Reform) Bill needs to work for responsible landlords every bit as much as tenants. Without this it will serve only to exacerbate the rental housing shortage many tenants are now facing.”

View Full Article: LATEST: Gove moves to reassure landlords ahead of reform bill changes

Michael Gove says landlords are ‘vital’ for a fair rental market

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Housing Secretary Michael Gove has praised independent landlords for their ‘vital’ role in the private rented sector (PRS).

He has written for the member magazine of the National Residential Landlords Association (NRLA), and argues that landlords offer tenants more options

View Full Article: Michael Gove says landlords are ‘vital’ for a fair rental market

Landlord fined £44,000 over unsafe HMO during bizarre court proceedings

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Strange proceedings have been reported at Bristol Magistrate’s Court after a landlord was fined £44,000 over serious fire safety issues at an HMO he operates.

Joe Sutera attended the court hearing but refused to identify himself saying he was ‘a man’ and that Joe Sutera had been ‘lost at sea’. He was therefore fine ‘in his absence’ despite being in court.

The court, after hearing how Sutera had breached an Emergency Prohibition Order served by South Gloucestershire Council by continuing to let out a property on Eagle Drive in Patchway (main picture) where there were serious fire safety issues and where tenants’ lives were being put at risk, imposed the huge fine.

The judge heard how Sutera had also failed to respond to a notice served by the team requiring him to provide his address and details of the property he rents and had consistently refused to provide his home address.

South Gloucestershire Council says his uncooperative attitude at court served to highlight the way he has hampered the investigations of its Private Sector Housing Team.

Tenant tip-off

The case follows a visit by council inspectors at the property in 2022 after a tip-off from its tenants, where a high category 1 hazard for fire was established as there was the potential for serious injury or death to the occupants due to there being no safe escape route in the event of a fire.

The shared kitchen was in the middle of the main escape route of the property; there were no fire doors to any of the bedrooms and there were no working smoke alarms in the property.

“Our Private Sector Housing team always try to work with landlords to bring their properties up to standard, but where this informal approach fails, we will look to take enforcement action,” says Councillor Leigh Ingham (pitured), cabinet member with responsibility for environmental health at South Gloucestershire Council.

“The level of the fine in this case serves as a serious warning to all landlords that they have a legal responsibility to protect their tenants and provide a safe and decent property for them to live in, and if they fail to do this, the council will take action.”

Read more about HMO regulation.

View Full Article: Landlord fined £44,000 over unsafe HMO during bizarre court proceedings

Calls grow louder to raise Local Housing Allowance for benefits tenants

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Letting agents are urging the government to boost Local Housing Allowance (LHA) each year to keep pace with market rents.

Giving evidence to the DWP Commons Committee hearing on UK benefit levels, Timothy Douglas, Propertymark’s head of policy and campaigns, said it must increase housing options for the most vulnerable by setting LHA at the 30th percentile, if not the 50th.

LHA rates are based on private market rents being paid by tenants in the area within which a person might reasonably be expected to live, and the local allowance is based on the 30th percentile on a list of rents in the area.

Capped

This is because housing benefits or universal credit payments are capped by LHA rates which were last updated in March 2020 to cover the rent for the cheapest 30% of properties in each local authority – in effect freezing them.

Benefits are not keeping up with rising rents, he told MPs, and further pressure has been put on the PRS because of low social housing stock, leading to vulnerable tenants being priced out of the market.

“The decision to phase out Mortgage Interest Relief and other unfavourable taxation policies is resulting in landlords facing unprecedented financial challenges,” said Douglas.

“If a decision not to implement a pro-growth taxation agenda for the private rented sector is not brought forward, it will be the most vulnerable tenants who are negatively impacted, many of whom are in receipt of benefits.”

Shortfall

Research by the Chartered Institute of Housing and Shelter found that fewer than one in five private rental properties in England were within LHA rates last year and that the average renter now faces a £151 monthly shortfall because it fails to cover their costs.

Earlier this year, the NRLA also criticised the government for its complacent attitude to the LHA freeze and its effect on both tenants and landlords.

Douglas also called for a change in rhetoric, and for policymakers to view private landlords and letting agents as part of the solution to resolve the housing crisis.

View Full Article: Calls grow louder to raise Local Housing Allowance for benefits tenants

Call for LHA to track local rents as landlords struggle with ‘unprecedented financial challenges’

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Propertymark has called on the Department for Work and Pensions (DWP) to reconsider its current Local Housing Allowance (LHA) scheme and communicate with landlords more.

Speaking at a recent Commons Committee hearing, the organisation’s Timothy Douglas detailed how the existing level of LHA is affecting the private rented sector (PRS).

View Full Article: Call for LHA to track local rents as landlords struggle with ‘unprecedented financial challenges’