Roof top solar panels are growing in popularity, including on commercial and retail properties. Property Lawyer Ignatius Suwanto highlights important points for tenants to consider.

Introduction

As the world turns towards cleaner energy solutions, the adoption of solar panels is becoming the hallmark of sustainable living. Individuals and businesses are increasingly looking to harness the power of the sun to reduce their carbon footprint and electricity bills. While installing solar panels on your property is a fantastic idea, it is important to remember that, if you are a tenant, there may be restrictions on your lease that affect your ability to install solar panels.

Before you start to harness the power of the sun, there are a few critical considerations to take into account and some exciting possibilities to explore.

Key factors to consider

Solar panels and your Lease Agreement: A crucial conversation

Before you think about mounting those sleek, energy-generating panels on your roof, it is imperative to review your lease agreement. Installing solar panels is considered to be what is referred to in a lease agreement as “tenant installations”. As such, the tenant must obtain consent from the landlord. While this may sound like a daunting task, it's important to note that many landlords are just as eager to embrace sustainable living as their tenants.

It's an excellent opportunity to have a conversation with your landlord about the benefits of solar panels. Lower utility bills, increased property value, and environmental consciousness are all compelling points that could persuade them to give their nod of approval.

The lifespan of solar panels and lease durations: Ownership of the solar panel

The lifespan of solar panels typically ranges from 25 to 30 years. Some retail lease agreements can last for similarly long durations. While seeking the landlord’s consent for the installation of the solar panels, it is crucial, before installation, to address the ownership of the solar panels when the lease ends.

Ownership of the solar panels: What options are available?

There are two common approaches to resolving the issue of ownership. In the first scenario, as the solar panels are considered tenant installations, it becomes the tenant's responsibility to remove the panels and make good any damage to the roof or other parts of the premises (e.g. electrical systems) at the end of the lease. This option is more favourable for longer leases, as the solar panels might require replacement at that point. However, this does mean additional costs for the tenant.

The second approach is to transfer ownership of the solar panels to the landlord. This alternative might be more appealing, offering a simpler resolution for both tenant and landlord. If the solar panels are appropriately installed on the premises, the tenant avoids the financial burden of removing the panels and the landlord enjoys the increased attractiveness of the property to future tenants.

Tenants might also consider whether to seek payment from the landlord for transferring the ownership of the panels.

Roof health and structural integrity: Safeguarding your premises

Solar panel installation requires secure affixing to your roof, and improper installation can potentially damage the roof surface. The removal of panels can have similar consequences. Naturally, your landlord will have concerns about potential roof damage, so it is imperative to address these concerns before installation commences.

We strongly recommend reviewing your lease agreement to understand your obligations regarding tenant installations. If your landlord has any concerns about the installation, you maybe able to address these through a Deed of Variation of Lease, to make clear what you are responsible for.

Electrical works and safety measures

Installing solar panels involves electrical works that must be carried out by a registered electrician. Ensuring that the associated electrical work adheres to Australian safety standards and is essential. When installing and removing solar panels, you may need to provide an electrical safety certificate to verify that the work again complies with safety standards and in the case of removal, that the roof has been returned to its original condition.

How Sharrock Pitman Legal can assist

Installing solar panels in a rented property can be a win-win situation for both you and your landlord. Accordingly, it is important to ensure that all of the tenant’s and the landlord’s rights and obligations under the lease are complied with during installation, and if necessary, removal.

Principal Lawyer Andre Ong is an Accredited Specialist in Property Law. He and our Property Law team can advise on all aspect of commercial, retail and rental lease agreements including reviewing the rights and obligations under the lease and negotiating the terms to obtain the landlord’s consent for the installation of the solar panel.

The information contained in this article is intended to be of a general nature only and should not be relied upon as legal advice. Any legal matters should be discussed specifically with one of our lawyers.

Liability limited by a scheme approved under Professional Standards Legislation.‍

Written by a member of our Legal Team

Ignatius Suwanto

For further information contact

Ignatius Suwanto

Ignatius Suwanto is a lawyer at Sharrock Pitman Legal. He is a member of our Property Law team. For further information, contact Ignatius on his direct line (03) 8561 3331.

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Roof top solar panels are growing in popularity, including on commercial and retail properties. Property Lawyer Ignatius Suwanto highlights important points for tenants to consider.

However, in this article we will set out the factors that influence how long it will take to obtain a Grant of Probate and to administer an estate in Victoria.

The basics

First things first: what is a Grant of Probate? A Grant of Probate is effectively a document issued by the Supreme Court of Victoria which formally authorises an executor to manage the estate of a deceased person in accordance with their Will. Without Probate, the asset holders (say a bank or share registry) cannot be satisfied as who has the correct authority to receive the deceased's assets and may refuse to pay out.

Sometimes, for smaller estates or if assets are mostly jointly owned with a surviving spouse, asset holders might agree to release payment without requiring a Grant of Probate. This is usually on the basis that the person who receives payment promises to repay (or Indemnify) the asset holder if it turns out they paid to the wrong person.

If there is no Will, then you cannot obtain a Grant of Probate. Instead you obtain Letters of Administration. This is effectively the same, in terms of authorising someone to administer the estate, and would usually be obtained by the person who is the closest next-of-kin to the deceased.

“A Grant of Probate is effectively a document issued by the Supreme Court of Victoria which formally authorises an executor to manage the estate of a deceased person in accordance with their Will.”

Timeframes for Probate in Victoria

In order to obtain a Grant of Probate, the Supreme Court needs to be given information about the assets and liabilities of the estate, the deceased person, the witnesses to the Will, the executors and the Will itself. An advertisement of your intention to apply for Probate must also be published on the Supreme Court website for at least 14 days prior to any application being lodged.

Often, making enquires to obtain all the necessary information can take a number of weeks. Also, you will need the Death Certificate for the application for Grant of Probate and possibly for making proper enquires regarding the assets and liabilities. Waiting for the Death Certificate to issue can therefore add a few more weeks to the process. Overall, if you have your application for Grant of Probate lodged within 1 to 2 months from the date of death, you are making timely progress.

The Court itself usually does not take long to process the application (maybe another 1 to 2 weeks) and this is completed using the electronic Supreme Court filing system. This means you do not have to go to a Court hearing. The timeframe for processing applications for Letters of Administration is even less, given that there is no Will document for the Court to consider. There is also a general discretion for the Court to raise a 'Requisition' asking for more information before they review the application - this can sometimes delay matters.

“Overall, if you have your application for Grant of Probate lodged within 1 to 2 months from the date of death, you are making timely progress.”

So, here we are a few months after death and you finally have a Grant of Probate or Letters of Administration. It is important to remember that this is the start of the estate administration and not the end. For a very simple estate, you might only need a further month or so to cash the assets and pay them to the correct beneficiaries. However, it can often be more complex than that. Factors that determine the timeframe to administer the estate include:-

Some assets will take time to cash or transfer. For example, if selling a property, final settlement might be 60/90/120 days from the day of sale.
There is a 6 month period for challenges to be brought against the estate and executors must wait until this period expires before distributing the estate, if there is any risk that a disgruntled family member might come forward.
There might need to be final tax returns for the deceased or for the estate. Failing to wait for the ATO to process these could leave the executor personally liable for a tax bill.

You might need to advertise for creditors to come forward and wait for a period of months while this advertising timeframe expires. This protects the executor if they are unsure of all of the deceased's financial dealings and creditors.
It might not always be a good time to immediately cash estate assets. For example, the shares just took a nose-dive, do you still sell regardless of available price?

There is a general rule that executors have an 'executor's year' to complete the estate administration. This means that you should be aiming to have the estate finalised and distributed within 12 months from the date of death.

Liability limited by a scheme approved under Professional Standards Legislation.

Need help with Probate?

Our expert legal team is ready to take your call!

Mitchell is the Managing Principal of Sharrock Pitman Legal. He is an Accredited Specialist in Commercial Law (accredited by the Law Institute of Victoria). He also deals with areas of Employment Law, Wills & Estate Planning and Probate and can answer all your questions related to probate.

For further information, contact Mitchell on his direct line:

DIRECT LINE:

(03) 8561 3318

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Navigating Solar Panel Installations in Rented Properties

Roof top solar panels are growing in popularity, including on commercial and retail properties. Property Lawyer Ignatius Suwanto highlights important points for tenants to consider.

Introduction

Key factors to consider

Solar panels and your Lease Agreement: A crucial conversation

The lifespan of solar panels and lease durations: Ownership of the solar panel

Ownership of the solar panels: What options are available?