Solar rent

[Punch]

Having been down this road before we have been approached for a solar farm again, what are current rents? Obvs legal and agent getting involved but I’d like an idea.
Talking 41 years but late start with decommissioning bond. Which years should it be starting and scales?
Grade 3 land so should squeak in. Offering £10k costs and £10k option but for quite a time span. Anything else to think about!
TIA

 

[steveR]

If you have an experienced Agent, he will give you an idea of the going rate, but there often seem to be so many variables involved.

Any talk of battery farm alongside??

Bond should start 5 years after build, and increase on 3-5 yr increments.

Best of luck anyway...

 

[Landrover]

Been somewhat done this road recently, but after speaking to a few different people there seems to be a consensus that there is a few developers holding off until after a general election and a new government who may look more favourably towards planning with regards to renewables !

 

[steveR]

Been somewhat done this road recently, but after speaking to a few different people there seems to be a consensus that there is a few developers holding off until after a general election and a new government who may look more favourably towards planning with regards to renewables !

What it really needs is the Govt to kick the DNO's hard to upgrade their infrastructure properly.

Planning is not usually the issue now, from what I can ascertain fro most areas.

 

[snipe]

£1000 to £1200 Yorkshire area.
if you can get the DNO offer in your name.

 

[Bury the Trash]

as above ,shouldnt be any less really but anyway isnt 41 yrs a bit too long ? or is that just me .....

 

[snarling bee]

They all want 40 years now.

What do your successors want? I have spent some time looking at the real long term. ie why return the land to farming? Either brownfield development or own the solar park yourself for a minimal cost. But 42/43 years is a long time and the rules/laws/politics/taxes may be very different then.

 

[Greythundercloudys]

£1000 to £1200 Yorkshire area.
if you can get the DNO offer in your name.

We've a company exploring some solar on my farm is that 1200 an acre or what?

 

[snarling bee]

Yes it would be per acre, although I think that would be on the high side.

 

[snipe]

Yes per acre. Or 5 to 6% of gross income ( sold at market value no to a special company set up to sell it on again, I think it’s called an arms length deal)
rent were £900 2 years ago. A few companies up here offering £1200 but that might be for the perfect site(large area all south facing) . But the further south you go normally the rent increase

 

[curlietailz]

Depends upon distance to sub station and difficulty of site

 

[MrNoo]

Original solar farm is at £900/ac or 6% profit share whichever is greater. New firm I'm dealing with are talking a minimum of £1100 and £1500/Mw storage but still with the DNO currently

 

[Mr Gus]

What it really needs is the Govt to kick the DNO's hard to upgrade their infrastructure properly.

Planning is not usually the issue now, from what I can ascertain fro most areas.

Agreed, though wishful thinking, cambs council had in the planning stages for 3+ years a solar canopy over the st ives (not cornwall) concrete busway carpark, work was slow covid etc, but was finished last year according to my wife who regularly dropped kiddo to bus into Cambridge city centre, it has been 6 months with fencing still up & no power hook up by the DNO which is pure farce bearing in mind the engineering cost & complexity of the cambs busway infrastructure.

Official completion was third quarter of 2022.
Do you get the feeling that everything went to HS2 project for londoners to shave a few minutes off journeys to Birmingham that they hardly ever make!?

 

[Eronce]

What happens if a field drain is blocked on a field covered in solar panels?
Who is responsible and can the panels be moved etc

 

[Doing it for the kids]

What happens if a field drain is blocked on a field covered in solar panels?
Who is responsible and can the panels be moved etc

Why would you care!? They won’t want to move anything inside the fenced area, massive paperwork expedition!

To answer the OP I’m no longer sure the grid distance / planning makes much difference, it’s got to be £1100 + per acre per annum now.

The extras help, kick back if they sell, top up if they has a better yield, re drain farm when they deco etc

 

[snarling bee]

I am always amazed the number of people worried about solar parks bu66ering up drains. As if the rent at 5x agricultural wasn't enough. IF they ever get removed then the area will need a new drainage scheme anyway.

 

[warksfarmer]

Having been down this road before we have been approached for a solar farm again, what are current rents? Obvs legal and agent getting involved but I’d like an idea.
Talking 41 years but late start with decommissioning bond. Which years should it be starting and scales?
Grade 3 land so should squeak in. Offering £10k costs and £10k option but for quite a time span. Anything else to think about!
TIA

All legal and agent fees need to be covered.

Signing on fee is 1 years rent.

Rent then starts on the day of signing so basically that day you get 2 x rent figure.

You want the reinstatement contract as they will make a mess. a few days with a 360 and a very careful operator will sort it but charge about £700/acre.

You want the annual maintenance contract for mowing etc which will be about £150-£200/acre.

Get a new bank account and get them to put the money in to remove and dispose of the panels upfront. If they won’t do this walk away.

Make sure you have the option to purchase it for £1 at the end of the deal.

Rent wise then very variable but you should be around £1500/acre with a minimum amount but no maximum. Take a % of the turnover instead but make sure they don’t do ‘arms length’ electric sales to keep the turnover down. If you structure it correctly you should end up earning about £5000/ac every year but you won’t realise that until the initial lease is finished because you’ll earn big when you are in control.

Stick to your guns and don’t be afraid to tell them to do one. They won’t and they will keep coming back. Get the dno in your name. Ours cost £180. Best £180 I’ve ever spent!

It will need redraining but they’ll do it around the panels as they can’t have standing water around them.

 

[steveR]

What happens if a field drain is blocked on a field covered in solar panels?
Who is responsible and can the panels be moved etc

All depends..... ;-)

Are you talking about a drain exiting land, and then going into Solar? Or possibly, the other way around?

If it is your land on which the solar farm lives, then the best you can probably do, is stick a good deep french drain around the outside!

 

[Eronce]

Why would you care!? They won’t want to move anything inside the fenced area, massive paperwork expedition!

To answer the OP I’m no longer sure the grid distance / planning makes much difference, it’s got to be £1100 + per acre per annum now.

The extras help, kick back if they sell, top up if they has a better yield, re drain farm when they deco etc

Fair point,
Can’t help thinking like a farmer I guess!
You would think they would prefer well drained land to work on and service and clean the panels as oppose to a working in a boggy Mess though

 

[Eronce]

All depends..... ;-)

Are you talking about a drain exiting land, and then going into Solar? Or possibly, the other way around?

If it is your land on which the solar farm lives, then the best you can probably do, is stick a good deep french drain around the outside!

I was thinking a drain becoming blocked once solar has been installed