Solar Farm Consultancy
Solar farms present a valuable opportunity for farmers, estate owners, and other landowners to diversify their income and unlock the potential of land that might otherwise remain unused or overgrown.
Solar Farm Project Partners
ARC can offer farmers and landowners unrivalled professional advice in order to extract maximum value out of solar farm projects. As a member of the RICS and with over twenty years of experience in the field, we are well suited to offering you industry leading unbiased advice.
We work with a wide network of experienced investors, each with decades of expertise in the renewable energy sector across Europe, as we actively seek suitable land for the responsible development and operation of solar farms.
Benefits of solar farms
By hosting a solar farm, landowners can secure a long-term revenue stream, typically for up to 40 years. This offers a way to diversify income, reduce reliance on farming, and benefit from a lease agreement that adjusts with inflation.
ARC can provide expert guidance and act as a consultant on behalf of farmers and landowners in need of some help and non-biased guidance.
- Maximise income
- Low operating costs
- Reduce the carbon footprint
- Regular predictable income
Our core key services include:
- Feasibility studies
- Planning and development services
- Due diligence and risk analysis
- Grid connection advisory services
- Tender specification consultancy
- Submissions to Local Planning Authorities
- Heads of Terms & PPA Agreements
- Export Payment Management
Next steps for landowners considering solar farms
Landowners interested in leasing their land for solar power generation should first determine whether they have a grid connection on their land or nearby, with surplus power available in the local area.
They will also need to provide site details to land agents or developers involved in subsidy-free solar projects. The agent or developer can then assess the site’s potential solar generation capacity, the likely grid connection costs, and the local planning regulations.
The next step is to negotiate the heads of terms for the option and lease agreement. It’s essential to seek professional advice when drafting these terms, as they outline the basis for the option and lease. While not legally binding, heads of terms are difficult to alter once signed and dated. ARC is well suited to assist with these, being RICS registered we can offer you industry leading guidance and recommendations to extract maximum value from a developer.
Once an agreement is reached, an option (which includes the lease) will be negotiated. This option grants the developer exclusive rights to apply for planning permission, grid connection, and any other necessary consents within a specified timeframe.
If the cost of solar continues to decrease, the construction of the solar farm is expected to occur within one to three years of the option being finalized.
Factors landowners must consider
Self-build or lease?
Many landowners choose to install and operate their own small-scale solar developments, such as placing solar panels on grain stores or small plots, to meet the farm’s energy needs while also generating some additional income from exporting power to the grid. For larger sites, the initial development costs can be substantial, so landowners often grant an option to a developer, who will take on the lease once they have secured grid connection consent and planning permission. This approach is much less risky for landowners, as the developer assumes the cost and risk of obtaining planning approval. The developer also has the expertise and resources needed to finance and build the project. Developers vary widely in size, capability, and reputation, so it’s important to assess their track record. Additionally, keep in mind that most developers will likely assign the lease once the site is built, as they are typically not the operators themselves.
Do you have a suitable site?
If you have suitable land the chances are a developer has already shown interest. Solar developments are typically situated on flat, southern-facing land, where the visual impact is minimal and the sun shines more consistently. Locations near major roads, railways, or infrastructure are also attractive due to their reduced visual impact. Alternatively, fields that are less visible to the public and could be further screened by planting are also appealing from a planning perspective.
Solar developers have a detailed list of technical requirements for a viable site, including its size, proximity to the grid, grid capacity, and the likelihood of obtaining grid connection approval. However, landowners (like with any development) need to consider their land title early on. Are there any restrictive covenants or overage clauses on the property? Third-party mineral rights (especially if there are rights of entry) can pose challenges to solar development. Can you provide access to the nearest public highway or create a route for the main cable to the site? Is there a public footpath crossing the site?
Tenancies
If the land is under your direct control, that’s straightforward; however, if it is tenanted, there are several factors to consider. Firstly, the solar developer will need to conduct various surveys and tests. Does your tenancy agreement include sufficient reservations to allow the operator to carry out these activities, or will you need to obtain the tenant’s consent? The tenant may be opposed to part of the farm being used for solar panels.
Secondly, if the development proceeds, how quickly can you regain control of the land? Farm business tenancy tenants typically require at least 12 months’ notice. Agricultural Holdings Act tenants may have provisions for shorter notice periods (and Case B may theoretically apply), but we all understand the challenges that arise when tenants are reluctant to vacate. In many cases, tenants will need to be bought out. Every situation is unique, but addressing this issue early is crucial. While most developers can be persuaded to cover the costs to secure vacant possession, this requires careful negotiation and managing expectations.
Frequently Asked Questions – Solar Consultancy for Landowners
What does ARC Renewables’ solar consultancy service include?
Our consultancy covers feasibility studies, development guidance, planning support, due diligence, grid connection advisory work, tender documentation, and assistance with negotiating heads of terms for lease agreements. We act on your behalf to ensure you receive unbiased, professional advice at every stage of the process.
How can ARC help landowners maximise income from a solar farm?
We review site suitability, assess potential rental values, and advise on the most competitive lease structures. By drawing on industry data and market comparisons, we help landowners negotiate terms that reflect current market conditions and ensure long-term financial security.
Do I need a grid connection for a solar farm?
Yes. A viable grid connection either on your land or nearby is essential. ARC will review available capacity, local network constraints, and the likely cost of connection to determine whether your site can support a solar development.
How suitable does my land need to be for solar development?
Solar farms typically require flat or gently sloped land with a southern aspect, minimal shading, and limited visual impact. Proximity to the grid, access routes, and planning sensitivity are also important. ARC will conduct a detailed assessment to confirm suitability before you progress.
Will a solar farm affect the rest of my land?
The development will be confined within an agreed boundary, but additional measures such as cable routes, screening, or substation placement may require consideration. ARC will help you understand and negotiate these impacts, ensuring you are properly compensated and protected.
What is the typical lease length for a solar farm?
Most solar farm leases last between 25 and 35 years. These agreements represent long-term commitments, so it is vital to secure appropriate terms from the outset. ARC provides expert guidance to help you protect your interests throughout the entire project lifecycle.
What happens at the end of the solar farm lease?
The lease should include clear restoration obligations requiring the developer to return the land to its original condition. ARC will help you negotiate restoration terms and ensure adequate financial security is in place to cover decommissioning.
Should I build my own solar system or lease to a developer?
Owning your own system can work for small installations that support on-site energy use. Large-scale solar farms usually involve significant capital costs and technical requirements, so many landowners prefer leasing to a developer. ARC can advise on the best option based on your land, goals, and appetite for risk.
How do tenancy agreements affect solar farm development?
If your land is tenanted, the tenant may need to grant access for surveys or vacate part of the property. Notice periods and legal obligations vary widely. ARC will review your tenancy arrangements and help you manage the process, including negotiations where compensation or early surrender is required.
Do I need planning permission for a solar farm?
Yes. Full planning permission is required. ARC provides guidance on planning considerations, environmental constraints, visual impact, and the documentation needed to secure approval from the Local Planning Authority.
How long does the development process take?
Timelines vary based on grid availability, planning factors, and developer negotiations. In many cases, construction occurs one to three years after the option and lease are agreed. ARC will support you through each stage to keep the process efficient and transparent.
Why should I work with ARC Renewables for solar consultancy?
With over twenty years of experience, RICS membership, and extensive industry networks across the UK and Europe, ARC provides professional, impartial advice that helps landowners secure fair market value while reducing risk. Our focus is on protecting your interests and ensuring long-term project success.
How do I get started?
You can contact us today to arrange an initial discussion. We will assess your land, review your objectives, and advise on the next steps for progressing a solar farm opportunity.
The impact on your land
How will the development impact your retained land? While a solar development will be confined to the boundaries outlined in the lease agreement, it’s important to remember that developers will require a much larger ‘cordon sanitaire’ around the site, within which development and planting will be restricted. Similarly, the easement corridor for the main cable will face comparable limitations. Landowners must negotiate vigorously to minimize these impacts on the surrounding estate. Additionally, solar farms may necessitate changes to rights of way, screening, environmental offsets, or the placement of a substation on your land. It’s crucial to understand the level of control you have over these aspects and how you will be compensated for the use of your land in these circumstances.
You must also consider the future. The economic lifespan of a solar development will eventually come to an end. Therefore, it is essential that the lease includes restoration obligations, along with provisions for a restoration bond or other security. This is vital to ensure that you, the landowner, are not left with the responsibility (and potential environmental liability) for restoration once the site ceases operation. This is especially important as the final operator of the development is unlikely to be the same entity that signed the original option agreement. Strong relationships at the start will not matter if you need to enforce restoration obligations against the party responsible for decommissioning the site 25 years down the line.
Solar farm leases are typically granted for 25-35 years, making them a once-in-a-generation opportunity for most landowners, with the potential for significant impact on their estates. These projects should not be undertaken without careful consideration and expert advice to ensure market rents are secured and the landowner’s interests are fully protected.
We work with a range of specialized renewable energy agents and cannot stress enough the importance of expert guidance. These professionals can identify unreliable developers who may offer higher financial incentives but lack the capacity to deliver on the project. They will also ensure that strong heads of terms are established, aligning with current market trends, which will simplify the negotiation of the lease documents.
While solar developers are expected to cover an estate’s professional fees, they often push for minimal contributions, which can hinder the landowner’s ability to safeguard their interests properly. Given the potential impact on an estate, it is crucial that landowners insist that developers fund the quality advice necessary to protect their position.
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