Should landlords lease land for solar farms?

With the reduced cost of solar panels and high performance of rental incomes, solar farms offer some great benefits for landlords. This article looks at the various benefits for landlords considering leasing land for solar farms and gives an overview of the current solar energy market.

How much does a solar farm land lease cost?

With solar farm land lease rents ranging from £850-£1100 (depending on variables such as development size and location) per acre per annum, rental rates compare favourably with other income streams such as agricultural and livestock farming, event hosting and storage services.

What is a solar farm land lease program?

Solar Farm Land Lease Programs offer an opportunity for farmers, estate owners and other landowners to diversify their income streams and realise the potential of land that may otherwise be left overgrown or redundant.

Can I lease my land for solar power generation?

Landowners interested in leasing their land for solar power generation will need to find out if they have a grid connection located on their land or in the vicinity with surplus power in the local area.

Can I rent land for a solar farm?

Renting land for a solar farm is a commercial lease and is not an agricultural use, so Agricultural Property Relief from inheritance tax may be lost. Transferring ownership of the land to another individual or trading entity before any development starts may be worth considering, to minimise the tax implications, but seek professional advice.

How does solar land lease work?

Land rental is paid per acre and compares favourably with other uses (including agricultural leasing). Solar land lease revenue streams provide financial certainty and can play a vital role in ensuring families maintain ownership of their farms and estates into the future.