More and more people are converting to renewable energy to heat their homes in an attempt to save the planet but also to reduce the money spent on energy bills. Whilst converting to renewable energy does have its advantages from a legal perspective there are some pitfalls that you need to be aware of:
Lease
The way in which most renewable energy companies operate is to offer the homeowner the equipment for free but then take a lease over the relevant part of your home where the equipment is located.
You need to think carefully before entering into a lease with an energy company, as ultimately this may affect what you can and can’t do with your own property! For example, it is likely to make it much more difficult to sell or even remortgage your property as often lenders will not be happy that a part of your property is leased by a company. You may even need to get the consent of the energy company before you can sell your property (subject to the terms of the lease that you have entered into).
If you are sure that you want to convert to using renewable energy it is always best to instruct a solicitor to review any contractual/lease documentation prior to entering into anything formally, as ultimately, you need to be comfortable with the content of the documentation and what effect this may have on you in the future.
Cost
Another common pitfall is that energy companies will often say that you will save a certain percentage on your heating/electricity bills as a result of swapping to renewable energy. If you have spent money on the system either in cash or by raising finance to purchase the equipment, the savings given to the purchaser as headlines will be very important, as it will give an indication as to whether it is cost-effective to install the system. Sometimes you may end up spending more on your heating/electricity bills than you had done prior to having the renewable energy system installed!
Often this leaves homeowners in a position where they have to continue to use the renewable energy source as they are contracted to do so for the term of the lease (as discussed above) even though it is costing considerably more money to run. In the alternative, if they have bought the system, it leaves them massively out of pocket.
What do you do if you find yourself in this situation?
It is a good idea to seek legal advice as soon as possible, it may be that there is something that can be done to help you terminate the lease early. By way of example, if the energy company has stated in their sales material that the heating device would save you a percentage on your energy bills and it has not, then it may be possible to run a claim under misrepresentation, seeking to terminate the lease early.
If you have bought the system you may be able to pursue a claim in breach of contract or in misrepresentation if the figures given to you at the outset in terms of potential savings prove wildly inaccurate.
How can Nelsons help?
Ruby Ashby is an Associate in our expert Dispute Resolution team.
Should you be affected by any of the above issues, please do not hesitate to contact Ruby or another member of the team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online enquiry form.