Many farmers are faced with increased costs and regulation and are having to put in longer hours for diminishing returns. This toxic mix is leading more farmers to consider whether they should operate a solar farm on their land. This would appear to offer a financial solution to many whilst also supporting renewable energy sources.
One of the most important issues to consider at the outset is whether a grid connection is available from the distribution network operator. In addition to such technical issues, a farmer will have a number of hurdles to get over to set up a solar farm.
One of the most obvious and important initial aspects is the ownership of the land upon which the site is to be built. If the land is contained within a farming partnership, for example, this can lead to lengthy discussions before the project even gets off the ground.
It will then be necessary to enter into a number of complex legal documents including possibly a Lease, Wayleave Agreements, and the main operations and maintenance contract. It is important to ensure that the taxation issues are dealt with at the outset and, of course, if a bank is going to fund the project, this will involve significant negotiations with the lender.
A landowner looking to place a solar farm on their land also needs to consider the ongoing maintenance which will be required in relation to the equipment on their land.
If you are considering an ambitious project in relation to your land, contact us.