Got a good site, but don't want to develop a solar farm yourself?
You may well already have people trying to secure options for your land, offering to develop projects for you, or encouraging you to consider a solar farm development.
Don't sign anything until you know what the prospect is worth!
The rental you can get for allowing a solar farm on your land is likely to be better than most agricultural uses. But giving away an option to a developer at an early stage may lock up your land without guaranteeing that the project will ever be installed as described here. Time is important as the tariffs go down in future years, and so projects will become less attractive as time goes by.
It is much better to invest a little to get your own consent for the project, even if you then decide to lease the land out. You should make a profit on any costs you have incurred and will keep control of the process. We therefore strongly encourge you to continue through to planning as described below. If, however, you are inclined to sign an option agreement, but want some advice, please feel free to talk to us.
Understanding if leasing your land is right for you
Should we think your site is viable for a solar park, then in our initial assessment report we will give you an indication of what the project might be worth, including an indicative site rental figure.
If you want to maximise your potential rental revenue and your chances of finding a solar park developer who will actually do more than just take an option out on your land, then you will almost certainly get a better deal if you work with Ownergy to secure planning consent. You then still have the option to lease the land but might also choose the more lucrative option of co-developing the project. If you have not already done so, we suggest you read more about your options on our page about structuring your project.
Finding the best development partner
If you are sure leasing your land is the approach for you, we can help get the best deal.
Because of our extensive activities in the sector, we are familiar with a range of different independent project developers.
We can arrange on your behalf a tender to select the most suitable developer to undertake the project, and establish the terms.
The investment you have made with Ownergy in co-developing the project to this stage will now come into its own as you should be able to 'sell' the project and the benefit of any planning and connection consents to the developer at a profit. You will also get any agreement for renting out the land, as described below, and may be able to negotiate a concessionary price for buying electricity.
The land lease contract
Land is normally leased for a set price per hectare under an agreement for the duration of the tariffs. The level will depend on how good the site is, generally measured in relation to the annual sunlight levels, and other factors including access and topography.