Read More

  Financial Benefits

1. Who’s paying for the system and installation? Is that in full?

HomeSun pays. With Free Solar, HomeSun pays for equipment, installation insurance, maintenance for 25 years – everything. There is a second package – SolarShare. This costs a one off fee of up to £500 SolarShare includes equipment, installation, insurance, maintenance for 25 years – everything.

2. Who gets (a) the feed-in-tariff, (b) the export tariff, (c) the ‘free’ electricity?

Homeowners get the free electricity – as much as they can use. HomeSun gets the generation and export tariffs. If at any point, the homeowner wants to receive the tariff and end their contract, no problem. They would simply buy out of the HomeSun contract. The cost of the PV system decreases over 25 years (with the exact amount by year noted at the back of the contract), and that’s the ‘buy out’ price.   Once the ownership is passed over, the homeowner will receive the level of tariff that was current at the time they took out the contract with HomeSun.

3. How is the energy measured, and how will the benefit to the consumer change if the rollout of smart meters requires the export to be measured rather than estimated (or ‘deemed’) as at present?

All the power flows relating to the tariffs will be metered in due course. However, in the initial years before Smart Meters are widely used, the export element will be deemed to be 50% of the power generated by the system. This is as per the DECC consultation documents.

4. How much is this worth to the homeowner and has the provider calculated this on the basis of your actual use?

Many of our customers are reporting a third off their electricity bills, and that’s entirely consistent with our estimates.   But the actual amount will always depend on how and when the homeowner uses electricity.  They will get a lot free, for example, during daylight when the panels are producing and/or they set timers for equipment like washing machines. Whatever the figure, the savings are likely to increase, as everything generated is inflation proof (energy prices have doubled over the last five years according to uSwitch.com’s research in 2009).

5. Are there any guarantees for the kit and the financial benefits? What happens if it stops working and generating FITs?

The equipment is fully guaranteed and insured. We are also responsible for maintenance. As we take the income from the FITs, it is in our interest, as well as the homeowners, to make sure that the equipment is performing as well as it can. All risks related to FITs are with HomeSun.

  Financial risks

6. If there is an up-front payment, is this a loan, and if so is it secured?

HomeSun was founded to try and make solar accessible to as many people as possible. We know that one of the major barriers to uptake is the availability of the money to fund the capital cost. That is why we developed Free Solar and SolarShare: we fund the all/the majority of the upfront cost ourselves and recoup the investment by collecting the FIT payments; the homeowner gets free electricity and a reduced carbon footprint.

7. Are you in effect lending me money to do this, either as a loan or a hire purchase deal? In which case, how long for? What is the annual equivalent interest rate (AER) on the money? Where is your consumer credit license? And, can I have 7 or 14 days cooling off please (depending on whether the deal was done in person)?

We are not lending money. In effect we are leasing the airspace above the homeowners’ roof space to install the panels and other parts of the system. Once the system is up and running, the homeowner takes the free electricity and HomeSun takes the income from the feed-in-tariffs.

8. What happens if I want to pay off the remaining costs early? Can I have the Feed-in-tariff re-assigned to me?

If the homeowner opts for Free Solar or SolarShare then they will own the panels at the end of the feed-in tariff term or if/when they decide to buy out the panels during the contract.  The cost of the PV system decreases over 25 years (with the exact amount by year noted at the back of the contract), and that’s the ‘buy out’ price.   Once the ownership is passed over, the homeowner will receive the level of tariff that was current at the time they took out the contract with HomeSun. Many other free solar companies do not offer this buy-out option.  The transfer of ownership to the homeowner is guaranteed by their HomeSun contract.

9. Will it affect the mortgage or any other financing option?

Solar may be viewed as a modification by mortgage lenders (just like an extension or dormer window), so it is best to inform them. The homeowner just gives HomeSun the company name, and we’ll handle all the rest.

10. What happens if the company which owns the equipment ceases to exist e.g. goes into liquidation?

FITs are introduced under an Act of Parliament, administered by Ofgem, and electricity supply companies are obliged by law to pay the tariffs or they will lose their licences. The three major political parties have all backed the introduction of FITs, so while a government at some point in the future may decide to alter or stop the FIT scheme going forward, those changes will not affect the systems that are already in place. In the unlikely event that anything happens to HomeSun, the homeowners’ contract (i.e. the lease) will continue to operate as normal. They will continue to receive free electricity from the system, but the FIT payments will be collected by HomeSun’s creditors (e.g. banks); any maintenance and servicing will continue as normal.

Installation

11. Who is liable for any damage done to the house, neighbouring buildings, residents and third parties during the installation?

HomeSun is responsible. Both we and our installation partners carry liability insurance.

12. Who is responsible for scaffolding or any other kit that is left on site during the installation?

Our installation partners are responsible for all equipment and tools used during the installation process.

13. Who is responsible for addressing any planning issues or electricity distribution company notification requirements? Who pays any associated costs?

HomeSun is responsible for planning issues and dealing with the electricity companies – and we pay the associated costs.

In terms of a homeowners’ current energy supplie,r the agreement doesn’t affect anything they already do, and so they don’t have to worry about anything. The homeowner stays with whatever energy provider they like, and switch when and if they like. The utility company will take its normal reading and bill you as usual; of course, this reading will be lower and so the electricity bill will be less.  And that’s true whether you buy electricity and gas together or individually from different companies.

14. Do I need to let my mortgage company and/or buildings insurer know that this installation has taken place? Will I need their permission?

Solar may be viewed as a modification by mortgage lenders (just like an extension or dormer window), so it is best to inform them. The homeowner just give us the company name, and we’ll handle all the rest.

Ownership and maintenance

15. Who owns the kit? And is that all of the kit – i.e. meter, wires inside building etc – or just equipment on the roof/in the back yard?

If the system is bought outright from HomeSun, the homeowner will own the panel and equipment from day one. If they opt for Free Solar or SolarShare they will own the panels at the end of the feed-in tariff term or if/when they decide to buy out the panels during the contract.  The transfer of ownership to you is guaranteed by your HomeSun contract.

16. Can the homeowner buy the whole system at a later date?

If the homeowner opts for Free Solar or SolarShare then they would own the panels at the end of the feed-in tariff term or if/when they decided to buy out the panels during the contract.  If at any point, the homeowner wants to receive the tariff and end their contract, no problem. They would simply buy out of the HomeSun contract. The cost of the PV system decreases over 25 years (with the exact amount by year noted at the back of the contract), and that’s the ‘buy out’ price.   Once the ownership is passed over, the homeowner will receive the level of tariff that was current at the time they took out the contract with HomeSun.

17. Who pays for maintenance and repairs?

Solar panels need little maintenance but, of course, something could go wrong and they should be cleaned if they become dirty. With Free Solar and SolarShare, everything is included in the contract. We take total responsibility for maintenance, repair and smooth operation of the solar system including the replacement of the inverter (average life of 10), and handling any claims to do with manufacturers warranties.

18. Who’s insuring the kit? Against what?

If you buy the system outright, the homeowner will be responsible for them once they have been installed. It is likely that they are covered by your Buildings or Contents insurance policy, and the homeowner also be covered by the manufacturer’s standard product and performance warranties. With HomeSun Free Solar and SolarShare, we include insurance, so that if panels are stolen or damaged they will be replaced or repaired at no cost to you (though intentional or accidental damage by the homeowner is not covered).

19. Who will be liable if the equipment causes damage to my family or my neighbours, or causes damage to mine or my neighbours’ building or electrics?

Both we and our installation partners carry 3rd party liability insurance that would cover this.

20. What happens if the system stops generating electricity because: a poor quality system was installed; the system has been incorrectly installed; or due to damage on the site?

Because we take the income from the feed-in-tariffs it is not in our interest to install a system that is poor quality, poorly installed or damaged. We want the system to work as effectively as possible to give homeowners as much free electricity as possible and, in turn, to give us maximum revenue from the feed-in-tariffs.

21. Who is responsible for removing the system once its useful life is over?

At the end of the contract period (25 years), ownership of the system passes to whoever is the homeowner at the time. At this point we would expect the panels to have another 10-15 years of useful life. The homeowner is responsible for removal at this point.

Change in property ownership

22. What happens if I move house and the new owners don’t want to ‘inherit’ the deal?

If the homeowner moves house the contract will pass to the new homeowner, and they will continue to receive free electricity. But if the new owners don’t want to inherit the deal, they or the new homeowners can buy the contract out.

23. Who pays a) for removing the kit b) if my roof needs repairing or c) if the kit is damaged beyond repair?

a) The homeowner is responsible for removing the system at the end of its useful life. If the system needs to be removed temporarily to allow the roof to be repaired, we will do this at a cost to the homeowner of approximately £1,000 – it should be noted that we assess the condition of the roof during the technical survey and we will not install systems on roofs that we do not believe will last for at least 25 years.

b) The homeowner is responsible for making any repairs to their roof in the normal way, unless damage results specifically from the solar PV installation, in which HomeSun is responsible for any repairs.

c) If damage was caused by storm, fire etc., we are covered by insurance. If the damage was caused maliciously or negligently by a homeowner then we would expect them (or their own liability insurance) to cover this cost.

Who can consumers trust?

24. Are the installers and product registered with the Microgeneration Certification Scheme (MCS?)

All the equipment installed and the installation service meets the requirements of the Microgeneration Scheme. Electrical work is carried out by a Part P qualified electrician (qualified to work on domestic electrical systems). All our installers are expert teams from Carillion Energy Services.  They have  twenty years’ experience of providing ‘green’ support services for leading organisations including running the government’s Warm Front programme since it was launched in 2001.

25. Are they members of the Renewable Energy Association?

HomeSun is a member of REA.

26.  Does the HomeSun lease for Free Solar and SolarShare comply with the recommendations of the Council of Mortgage Lenders?

Yes, it does.