Solar panel power generation land rental compensation

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.

What are the tax implications of renting land for a solar farm?

What are the tax implications? 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.

Why is solar farm rental income important?

Farm rental income is considered a favourable revenue stream by banks and lenders, which has allowed our solar farm landowners to successfully secure further financing using the rental income. This also allows landowners to address and improve future financial planning for their business and to keep farms in the family long term.

What happens during a solar panel lease term?

During the lease term, landowners will be unable to use the land (or any adjoining land) for other opportunities that would obstruct or affect the operability and efficiency of the solar project. For obvious reasons, solar panel leases will grant the tenant a right of free, uninterrupted and unobstructed passage of light to the solar panels.

Is BPR available for solar farm rental income?

BPR may also be available if solar farm rental income forms only a small part of the income of the farm trade, but this depends on the specific facts and is only likely to be relevant on very small projects.

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.