Renewable Energy Projects for Landowners

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.

Speak to our renewable energy solicitors today

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, Shetland or Orkney, or fill in our enquiry form to request a call back.