Installing solar pv panels is an attractive option for developers but there are a number of issues to look out for says partner martin codd in the latest issue of building magazine.
Are solar panels fixtures or personal property.
This lien poses a challenge when a homeowner wants to refinance their home.
Electrical wiring of the solar panels is required to connect the solar panels with the power supply of the house or building.
At that time the homeowner has to make lease or mortgage payments to the solar panel company that records a document such as a ucc 1 financing statement.
Generally when something of value is physically added to real property what is added is.
A typical active solar energy system is considered a fixture and thus real property if it meets the tests outlined above.
Feed in tariffs fits and solar panels solar pv systems can help developers meet planning conditions and achieve a higher code for sustainable homes rating.
You should own the solar panels.
Solar panels are attached to the roof of a house or building.
With the increasing popularity of residential solar panels the issue of whether these panels are classified as real or personal property has been the subject of some discussion debate and litigation.
All of this could be really important if the lender financing the solar facility only filed a real property mortgage and the fight is with the bankruptcy trustee of the borrower over whether the solar panels are fixtures or merely personal property as to which an interest therein cannot be perfected through the real property records.
The right to utilize solar energy is a property right but eminent domain may not be used to obtain such property right.
Solar panels are attached to the roof of a house or building so it is most likely that solar panels would be a fixture.
When solar panels are attached to a home the solar panels become fixtures i e part of the home.
Most of these liens cannot be subordinated which unfortunately makes refinancing almost impossible.
Any easements obtained for the purpose of construction reconstruction remodeling or acquisition of a solar energy device shall only be created in writing and shall be subject to the same conveyancing and instrument recording requirements as other easements.
In michigan residential personal property is not subject to property taxation.
The exclusion is not applicable to portable active solar energy systems since they are items of personal property.
Since there are very little up front costs for leased solar panels solar companies will place a lien against the homeowner s property as a means of security.
