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As an increasing number of landowners invest in renewable energy generation, it is seen as a reliable way of securing a consistent return from land. With high energy prices and an increasing need to produce more energy closer to home, diversifying into renewable energy can be an attractive option.
As an increasing number of landowners invest in renewable energy generation, it is seen as a reliable way of securing a consistent return from land. With high energy prices and an increasing need to produce more energy closer to home, diversifying into renewable energy can be an attractive option.
The UK government’s aim of reaching net zero carbon emissions by 2050 means that an increase in alternative energy production is likely to be encouraged. Demand for land that can host grid-scale renewable energy projects is high and landowners are increasingly being approached to host renewable energy infrastructure.
Choices exist in respect of the level of involvement and a landowner’s appetite for risk will influence the level of involvement. A landowner can lease their land, including via an option agreement with the lessee exercising their option once planning consent for the project has been secured. This is the least risky level of involvement but does mean that the landowner has little control over the scheme.
Alternatively, the landowner can retain more control over the scheme, developing it themselves and arranging for connection to the grid. They have the option to use some of the power themselves for use in their business if this would be beneficial. This is the most risky level of involvement as the landowner may have to fund grid connection reservation fees and planning costs while it is still uncertain whether planning consent for the scheme will be granted. The development could be kept and managed by the landowner or the infrastructure leased or sold with rental income for the land retained.
A mid-way course is entering into a joint venture with a developer under which the landowner takes a financial stake in the scheme and a share of any eventual profit.
At Anderson Strathern, we regularly advise on renewable energy for landowners. We can discuss the options available to you and work to understand your business and the choice that is likely to be the best for your circumstances.Our renewable energy team understand the importance of diversification for landowners. We have a strong commercial understanding of rural enterprises and we will always work to help ensure your business is as secure and as sustainable for the long-term as possible.
We have expertise in a range of renewable energy sectors, including wind energy, solar power, bioenergy and energy storage.
We deal with projects of all sizes, from single wind turbines and small solar installations for individuals to large-scale developments.
Renewable energy agreements are complex, with many issues that need to be taken into account. Whether you wish to invest in wind energy, solar power or another type of renewable energy generation such schemes are a long term commitment. It may take many years to secure planning consents, especially for large on shore wind schemes, and a lease will typically last for in excess of 30 years and have substantial tax and other implications.
It is essential to have a full understanding of all of the possible issues before you enter into an agreement. Our renewable energy experts will take the time to understand your situation and provide advice tailored to your circumstances.
If you would like to speak to one of our expert renewable energy solicitors, feel free to get in touch.
Contact us on 0131 270 7700, visit our offices in Edinburgh, Glasgow, East Lothian or Shetland, or fill in our enquiry form at the bottom of the page to request a call back.
If you are considering leasing your land to a renewable energy company, you need to be absolutely sure that the agreement is in your best interests and that it is the right choice for your land.
We will carry out extensive due diligence work to ensure there are no unpleasant surprises in the future. With leases often lasting for 30-50 years, it is crucial to have every detail checked before you agree to enter into a lease.
Where necessary, we will negotiate robustly on your behalf to secure terms and conditions that will benefit your property.
Option agreements are complex and it is crucial to make sure they are tailored to suit your requirements. Issues we will cover with you include:
For landowners who have developed their own renewable energy scheme, we can deal with the leasing of this to renewable energy providers. The agreement will take into account ongoing maintenance, replacement of infrastructure where necessary and issues such as access and how an agreement can be terminated.
While there can be many advantages to joint venture schemes in the renewable energy sector, it is crucial to ensure from the outset that all parties understand their responsibilities and the extent of their rights.
We can work to understand exactly what you want from a joint venture and put a robust agreement in place safeguarding your interests, clearly setting out what is expected from everyone involved and detailing how disagreements will be dealt with.
Where a landowner wishes to sell their interest in a renewable energy scheme, we offer advice and representation. This includes in respect of the sale of land with the potential for renewable energy development as well as the sale of interests in existing renewable energy schemes.
We represent landowners and others in dealing with the financing of renewable energy projects. Our team has a high level of experience in meeting lender requirements and a strong understanding of the need to meet tight deadlines.
It is important to take tax considerations into account before entering into any renewable energy agreements. Land in use for renewable energy projects will generally cease to be considered as agricultural land and certain exemptions and reliefs will therefore be lost.
We can advise on issues such as:
For more information in respect of our services and expertise, see our Agricultural and Rural Law page.
As a landowner, you will want to make sure you retain the rights you need to access and manage your land in the way that you want. We will work with you to establish the rights you need and make sure these are clearly set out in any agreements that you enter into.
Issues we frequently deal with include:
We can discuss with you the legal implications of your choice of renewable energy. For example, some schemes may be available over a shorter period or with more scope to continue using the land for some agricultural use alongside energy generation.
For landowners with smaller areas that may not be suitable for wind or solar, we can advise on alternative options such as agreements or options for battery storage.
Land may be tied up for wind and solar farm usage for 30-50 years. As wind and solar technology develops, the developer may want to replace turbines and solar panels, but you should be prepared for them to stay on the land for several decades.
If you would like to speak to one of our expert renewable energy solicitors, feel free to get in touch.
Contact us on 0131 270 7700, visit our offices in Edinburgh, Glasgow, East Lothian or Shetland, or fill in our enquiry form at the bottom of the page to request a call back.
"A strong team of property and commercial solicitors that support us across a wide variety of renewables projects in England and Scotland"
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