Leasing land for clean energy in the UK: benefits, myths – and a guide to the process

So, you are interested in leasing unused land for solar energy production and want to find out more – it sounds like a complicated task.

In all honesty, it is. However, there is no need to fear. With Quintas Cleantech, landowners don’t have to deal with the administrative and logistical headaches that make up the solar development process. These issues are for the professionals to deal with, which is why our team are experienced specialists with expert knowledge when it comes to creating the perfect solar plant – and of negotiating the rabbit warren of permitting and legal obstacles between planning the project and its first day of operations.

Lease agreements in a nutshell

Here’s the essentials: leasing land for solar power is a mutually beneficial deal between landowners and solar energy developers. While developers gain a new solar plant, the landowners gain a stable, long-term revenue stream from unused or underused plots. There’s a third beneficiary – the UK itself, which gains increased clean energy capacity. But what of the process itself? How does it work? Here we explain it in four simple steps.

The four-stage solar lifecycle

When you pass a solar farm quietly minding its own business in the countryside, it is hard to believe the incredible frenzy of activity that has taken place in the three years or so since the landowner took the decision to lease their land. This consists of four steps:

1. Development: This first step starts with a thorough desktop investigation into the viability of the project – technically and financially – before visiting the site to study the local area and gather all the information we need to design the plant.
2. Construction: As with all construction work, this stage is its own mini-series. Keeping work under control, on budget and on schedule requires constant attention, not to mention troubleshooting any problems that may emerge. However, landowners can rest assured that our sister company Quintas Advisory oversees the entire process, and minimising inconvenience to local residents is a top priority.
3. Operations & Maintenance: All being well, the plant is now up and running. Again, the landowner need do nothing at this point, since all operational issues and maintenance work are overseen by a top-notch asset management team at our sister company Quintas Energy, which is also in charge of administering payments to the landowner.
4. End of life: A plant’s lifespan is between 30 and 45 years, although new technologies and the possibility of the landowner choosing to revamp the site means that this figure is always subject to change. Regardless, at the end of a plant’s productive life, we take responsibility for dismantling the facility and returning the land to its previous condition – an obligation that is guaranteed in our land lease agreement.

What is to be gained?

Now you know the ins and outs of leasing land for solar, you might have an inkling that the process can take some time. In fact, the timeline from initial agreement to operational status is around three years. So, you will want to be reassured that the wait is worth it.

Above all, remember that an up and running solar plant will not only provide 30-45 years of clean energy, but also give the landowner a stable, index-linked source of income for the same period. This is highly lucrative compared to other land uses, yielding about four times the amount of income per acre than farming wheat – the most profitable arable crop. Naturally, the uplift in returns is even more impressive when a solar development is built on land largely unsuitable for farming. It is also important to note that solar projects can be built on relatively small plots of land, with just 90 acres sufficient to host the scale of PV plant that we develop.

There is a lot to be said for the security of a land lease agreement, especially when compared to the frequently severe fluctuations of commodity prices and farming costs, which can leave landowners out of pocket. That is unlikely to be the case with solar rental income, which currently stands at £900-£1,300 per acre. This increased value is retained when it comes to land sales in the future.

Another thing to consider is that other potential income streams from non-agricultural land, such as camping or outdoor events, are subject to significant seasonal swings that make income unreliable. A 30–45-year index-linked revenue from solar insulates the landowner from these sorts of market ebbs and flows, including any increases in land or property taxes.

There are other solid benefits from a land leasing agreement. The long-term partnership with professional solar producers such as Quintas is one that is often overlooked. This partnership is great for the sustainability of a farm or other holding, since our asset managers are highly invested in good stewardship of the site and will take great care of the land during the period of its use for energy production, as well as restoring it to its original condition afterwards, preserving it for use by future generations.

Community gains

Beyond the personal or financial, there are benefits to the wider community, and the whole of the UK. The construction of a new solar facility is often the spur for improving the surrounding area, such as a stronger connection to the power grid, and this itself can revitalise an area – not to mention improving the reliability of local energy infrastructure.

Building work creates local jobs and provides opportunities for local businesses, and of course the additional clean energy generated for the UK is an obvious benefit for the nation at large. We work with stakeholders and landowners to bring job opportunities in construction and operations, and we strive to help the community benefit from the increased tax revenue that energy production brings.

For the best possible chance of creating a solar project that both the landowner and the local community can be happy with, our team will reach out to it at the planning stage, collecting feedback and gauging opinion so they can take everything into account when designing the project.

Finally, when it comes to the construction and operation of the plant, we only partner with the most ethical suppliers and contractors, as part of our commitment to Environmental, Social and Corporate Governance (ESG).

Debunking some myths

We believe the positive case for leasing your land for solar energy is unimpeachable, with a cascade of benefits. However, you may still have your doubts. There are legitimate things to consider when making such a long-term deal, especially for landowners concerned about the effectiveness of the facility, its safety and convenience, or its effects on the local landscape. Fortunately, most of the concerns regularly raised are based largely on myths or outdated information. Let’s put five of them to bed here:

1. The UK is too cloudy to make solar power viable. It is true that Britain is not famous for its sunshine in the same way that, say, Mediterranean countries are, but that is not necessarily a bar to effective solar PV generation. Certainly, sunny weather is good for maximum efficiency, but it is a myth that solar panels are totally useless in overcast weather, or even at night. Whatever sunlight is available, modern photovoltaic cells will derive some electricity from it – and according to research by the Florida Solar Energy Center, they can even squeeze a flicker of power from ambient light, such as moonlight. It’s important to note here that the effectiveness of solar panels is improving every year through the introduction of new technology. At the planning stage, our experts will measure the irradiation levels for your area and give you an accurate estimate of the level of electricity a solar plant on your land would be likely to generate.
2. Setting up and running a solar plant seems very complicated. Given all we have said above, it is no wonder that a solar project can give an intimidating impression of complex administration and tricky engineering. It’s all relative, though. Compared with most construction projects, solar plants actually take a fairly short time to design and build, and once they are up and running, they remain largely unstaffed because they can be monitored and operated remotely via such high-tech methods as the Quintas Control Room, requiring only periodic maintenance and repairs. The chances of solar plants disrupting an area’s tranquillity are further reduced because they are very quiet, require minimal lighting and create only occasional traffic in the form of technicians and security.
3. Electricity plants are dangerous. As with any utility-scale project, it is not a good idea to go poking around a solar plant. Electricity is generated and converted on site, so naturally there is a danger. However, the area is no more hazardous than a standard electrical substation. All projects that we build are fenced off from the public with warning signs prominently displayed, and there is no danger to the surrounding area from pollution or toxic chemicals, because solar plants do not use or produce them.
4. Solar farms are an eyesore. There are still some people who regard renewable energy facilities as unsightly, especially wind farms. They accuse clean energy plants of spoiling the landscape and even of causing harm to the local environment. The truth is that of all the ways to generate power, solar farms are perhaps the cleanest and least obtrusive. Site visits ahead of the design stage allow our team to note the local geography, flora and fauna, and to incorporate tree or hedge-planting into the blueprints to ensure that the visual impact on the local area is minimal. Far from being an eyesore, we believe that a well-designed solar farm can enhance the local area.
5. Power plants damage the local environment. Once built, solar farms are quiet and with very few moving parts. They produce no smoke or fumes, in many cases still allowing agricultural activities to take place around them. Known as agrivoltaics, this means making it possible for solar energy generation while giving grazing animals or poultry access to the grass around and under the panels. We consider how best to not only preserve the area’s biodiversity, but also improve it. Good PV plant design incorporates measures to protect and encourage wildlife, such as sowing wild grasses and wildflowers around the solar panels to create habitats for insects and small mammals, which in turn attract birds, bees and other pollinators.

We are in it for the long haul

Now you have all the information you need to make an informed decision about leasing your land for solar. Above all, you can be reassured that our professional team will be with you all the way, not just through the planning and construction phases, but all through operations to decommissioning – we offer support from start to finish.

We hope this article has answered some of the most important questions you might have, but you might have other questions. If so, or if there is anything else you need to know about unlocking your land’s solar potential, contact Quintas Cleantech today.