Once a very niche sector, the UK’s renewable electricity outpaced its fossil fuel generation for the first time in 2020. And while much of that is driven by wind power, in 2021 solar power contributed in excess of 10% of renewable generation: more than 4% of the total electricity generated in the UK.
This shouldn’t be surprising when you consider that there are now over one million solar panel installations in the UK. More householders than ever are adding solar panels to their property, which can often add value when it’s sold later on. But while the consequences of going green can be positive, it can also cause title issues, for example, where restrictive covenants affect the property, which the homeowner was unaware of when fitting the panels. Subsequently, we are certainly seeing more residential enquiries to provide purchasers and lenders with peace of mind over any such breach of covenant claim.
However, setting aside residential title issues for the moment, as developers and funders continue to invest in renewable development projects, solar and wind farms are still what we see the most enquiries for in this field. We are regularly asked to quote for policies to cover a breach of restrictive covenants, lack of rights of way, mining rights or outstanding third-party rights and easements affecting these sites as part of the transaction.
Another social change behind the increasing number of clean energy enquiries we receive, is the growing popularity of electric vehicles (EVs). More EVs on the road call for a higher number of charging points in ever more diverse locations, and these can range from full EV charging stations, to operators leasing spaces in existing car parks in order to install charging ports. And no matter the size of the transaction, title issues can still arise which require a legal indemnity policy.
Different losses
Our commercial underwriting specialists have already gained a wealth of experience with the types of issues that arise, and are best-placed to help with the policies needed. While the title defects themselves might not be unusual, the key difference from more traditional large-scale developments is the type of losses that may occur. As well as the usual costs associated with defending a claim, cover may also be required, for example, for abortive installation costs and the cost of dismantling the equipment, and/or loss of anticipated income.
Our underwriters will always work hard to put together a bespoke policy, if required, to meet your client’s needs, even if you have a problematic case that our competitors have refused to cover.
To find out more, call our underwriting team directly on 01603 761515, or email us at enquiries@isisconveyancing.co.uk.