Solar PV legal and regulatory issues

In April 2010 a scheme, known as the FIT Scheme, was introduced to enable electricity supply companies to make payments to small- scale producers of low Рcarbon electricity. The purpose of the scheme was to encourage members of the public and the community to become involved in the low Рcarbon generation of electricity by specified types of technology. The system of Feed Рin Tariffs (FITs) is designed to provide support and to encourage small Рscale low-carbon generators. The sources of such generation were fore example biomass, wind and solar photovoltaic (solar PV).

FIT [Feed in Tariff]

The Feed-in Tariff comprises two elements, a ‘generation tariff’, that is payment for the amount of electricity produced by the small – scale low-carbon generator, even if that electricity is used by the person who generated it, and the ‘export tariff’ when payment is made for the amount of electricity exported into the grid.

The ‘generation tariff’ was recently considered by the Court of Appeal in Sec State for Energy and Climate Change v Friends of the Earth and Others [20120 EWCA Civ 28. This advice concerns the ‘export tariff’.A number of issues have arisen over the use of inverters to convert DC supply to AC that can be used by the grid.

Although guidance documents indicate that ‘generating eqipment’ includes the solar panels and the inverters, recent interpretations have taken a narrow view, thereby excluding domestic installations from the higher payments allowed under the tables setting out the categories. 

Planning and Construction.

Planning for Solar PV is generally easier than for other renewables. Permitted development rights exist for domestic microgeneration and works to industrial buildings, warehouses and offices, subject to listed building or conservation area issues.

One of the key issues is whether the roof can handle the weight of the solar panels. Surveys will often be undertaken, and the installer will need to consider the various issues including payment and performance warranties, maintenance, and delivery dates.The two most common types of contractual structure are a) Lease to developerThe building owner (the landlord) leases roof space to the developer of the PV system (the developer). The developer purchases the solar PV system (the equipment) and procures its installation. There may be an occupational tenant (the tenant) already leasing the building from the landlord. b) The landlord owns the equipmentIn this structure, the landlord is investing in the equipment itself. The existing arrangements with the tenant may need to be varied. The landlord contracts directly with the supplier and installer of the equipment. If there is no tenant, this structure will be much simpler than that described in the paragraph above.Practical Issues. These will usually be determined by the intastaller when the initial site survey is conducted.AccessCertification. All equipment should be MSC certified. The customer receives a certificate following installation, that is generally completed by the installer.Cables/grid connectionSituation of the equipmentConnection and metering  – most solar pv installation companies, have automatic permission to connect to the grid  under 16 amps per phase 3.68 kW at 230v known as G83/1 stage 1 regulation.Type of installation and attachment to the roof
Other Legal IssuesThe Parties will need to consider the lease, option agreements, and other issues such as the developers planned company structure. Futher complications arise where the proptery is leasehold, in respect of rights of access to the equipment, diliapidations, repair etc. The insurance position must also be fully considered, together with questions that arise at the temination of the lease or redevelopment.FundabilityThe installer will generally deal with the forms for FIT applications, to be signed by the customer. In cases where the installation is for a tenancy, then issues that need to be considered include questions of the sale and/or development of the building and consequental loss.

Originally posted 2012-04-02 00:00:00.