Solar photovoltaic (PV) panels are increasingly relevant for rental properties, driven by the EPC Band C 2030 target, the ECO4 grant scheme, and the Smart Export Guarantee (SEG). Installing solar PV can improve the EPC rating, reduce tenant energy bills, and generate income from export payments.
EPC uplift
A 4kWp solar system on a Band D property typically improves the SAP score by 8-15 points -- sufficient to reach Band C for many properties. An updated EPC must be commissioned after installation.
Planning and MCS certification
- Most houses and bungalows: Permitted Development if panels project no more than 200mm beyond the roof plane
- Conservation areas: panels facing a highway require a planning application
- Listed buildings: listed building consent almost always required
- Use an MCS-accredited installer for grid connection, SEG eligibility, and building regulations compliance
ECO4 and Smart Export Guarantee
- ECO4: tenant must receive a qualifying benefit, or property must be Band D-G. Can fund the full installation cost at nil cost to the landlord
- Smart Export Guarantee (SEG): pays approximately 4p-15p/kWh for electricity exported -- typically £80-£300/year for a 4kWp system
- SEG contract is held by whoever is responsible for the electricity account
Tenancy agreement -- what to cover
- Ownership: solar panels are the landlord's property
- Benefit allocation: who receives SEG export payments and benefits from reduced import bills
- Tenant obligations: no shading, no interference with inverter or racking
- Landlord repair obligation for the system (inverters 10-15 year life, panels 25+ years)