Solar Panels, who owns them?

Who Owns the Electricity in Rental Properties with Solar Panels?
In South Africa, solar energy is a fast expanding source of power, and residential rental houses are increasingly using it. The ownership of solar panels and the tenant's right to use solar panels are two legal consequences that should be taken into account when using solar power in rental buildings.

Having solar panels as property
Even though the renter paid for the installation, the landlord is often regarded as the owner of any solar panels put in on a rental property in South Africa. This is so that the landlord may profit from the benefits of the solar panels, which are seen as improvements to the property. Nevertheless, if the lease agreement expressly specifies that the tenant is the owner of the solar panels, then the tenant will be able to use the power produced by the solar panels and the landlord will never be permitted to interfere with the tenant's consumption of electricity. Electricity interruptions or disconnections would be considered spoliation. It might have dire repercussions for the landlord.

Right of Tenant to Utilise Solar Panels
The renter is often allowed to utilise the solar panels to produce power for their personal purposes, even if the landlord is the owner of the solar panels. This is true since the tenant is also responsible for paying the property's utilities. The leasing agreement, however, can include restrictions on the tenant's ability to utilise the solar panels. For instance, the lease agreement can provide that the renter is only permitted to use the solar panels for specific appliances and that utilising the solar panels will incur a price.

The utilities of a renter cannot ever be shut off by a landlord due to unpaid rent.
The reason for this is that since utilities are regarded as necessary services, cutting them off might seriously harm the tenant's health and safety. Only in cases where the tenant has expressly authorised this in the lease agreement may the landlord disconnect a renter's utilities. The leasing agreement in this situation must outline the solar energy charge, the deadline for payment, and the repercussions of non-payment. These legal concepts are crucial in the context of solar power, and the recent case of Lion Ridge Body Corporate v. Philanthea Alexander is a superb illustration of the legal ramifications of utility disconnection. In this instance, the body corporate requested permission from the court to disconnect the electricity for three owners whose taxes were past due. Utility supply is considered by the court to be a contractual right, and the supply and disconnection are solely governed by the particular contract. Accordingly, the court dismissed the case after concluding that the conduct standards did not provide for utility disconnection. This case serves as a reminder of the need of properly crafting utility supply laws and agreements and making sure that both parties receive the legal protection to which they are actually entitled. It also demonstrates the impossibility of unilateral utility disconnections and the improper use of such measures to coerce tenants into making rent payments.

Conclusion
Solar power may be an excellent method for both landlords and renters to reduce their electricity costs and guarantee a constant supply of electricity. Before installing solar panels, it's crucial to comprehend the legal ramifications of using solar power in rental buildings. Landlords and renters can prevent problems and guarantee the protection of their rights by being aware of the legal fundamentals. Our agreements include a section for extra conditions that you may use to fully control the usage of a solar system during the length of your leasing agreement in addition to the provisions already present in TPN Residential leasing Agreements. SSLR Inc. may provide a solution that is tailored to your unique demands if you want specialised support to guarantee that your exceptional conditions are entirely compliant.


*All credit for this article, including all information, sources, research and any other pertaining items, goes to the original publisher TPN Credit Bureau