Shropshire Star

Landowners urged to seek advice on renewables

The Government announcement that it is consulting on closing the Renewables Obligation scheme to new solar projects over 5MW could mean a significant change to the way large UK solar projects are funded and will affect many farmers and landowners.

Published

The indication is that the decision has been based on the amount of large-scale solar photo voltaic and would appear to try to limit the public costs associated with large-scale PV.

Given the changes to RO funding, farmers and landowners need to be even more cautious in dealing directly with solar developers.

Contracts for Difference is likely to change how large-scale solar PV projects are developed and may affect the viability of many schemes.

We have already seen many 'developers' land-banking – signing land for renewable projects and not progressing. For those who have signed exclusivity agreements, option agreements, heads of terms or contracts directly with solar developers or agents representing the solar developers and that do not yet have a completed solar farm, many may find that they are not progressing, or that they are now being offered a different deal. Your chances of having a completed project through these companies could also be greatly reduced.

Unrealistic land rentals, both low and high, are being promised by some agents representing 'developers' who approach farmers directly, to get them to sign over development rights, in order to earn commission and make increased profits or in worst cases, to stop other renewable energy development opportunities.

Developers may react by offering smaller projects, relocating to other areas, stopping progress of developments or trying to sell-on the projects This brings uncertainty to those already in contact with developers.

However it is not all bad news. – with change comes opportunity. While the new CFD funding subsidies are more complicated, those thinking about solar PV and taking professional advice from independent agricultural renewable energy specialists can be assured their best interests will be looked after.

Access to impartial advice will offer opportunities for good incomes and increased agricultural profits from both self-funded and externally funded solar PV. This is a good time for all farmers and landowners to take independent professional advice. Even if a landowner has entered into an agreement with a developer, it is still worth taking some initial advice to see what his rights are.

Providingthe right projects, funding and development teams are chosen, there are opportunities for: Smaller and better larger solar PV projects; alternative grid or off-grid connections; collaboration with professional investors and developers; improved efficiency alongside other forms of renewable electricity and renewable heat.

By Philip Meade, of Davis Meade Property Consultants