Shropshire Farming Talk: Advice on handling solar energy approaches

Development is now prevalent in previously rural areas whilst farms are no longer seen as merely a source of food production, but rather a diversified rural business.

The latest in the drive towards farm diversification includes solar development. 

At first, the opportunity to receive a substantially increased income by merely signing standard Heads of Terms through the post would appear fantastic, however there are always avenues to consider.

Advice

Your developer ought to pay for your legal and professional fees. Your agent will be able to ascertain the quality of your offer, identify improvements and establish favourable HOTs. 

Your solicitor will be able to counsel you on potential tax implications, caveat the contract and identify risks.

Array of developers

The developer may not have access to your local Grid Supply Point (GSP), whereas competitors may be higher up the queue. 

Should solar be a desirable proposition, then ensuring an option will be exercised within two years as opposed to five years could be advantageous.

Economies of scale

Developers normally seek larger scale projects. We rarely work with a project below 100 acres. A standard approach incorporates 40MW, typically this exceeds 200 acres. 

Typically, as a project becomes larger, the £/acre rent received also rises.

Extras

 Planning law does not require a 10 per cent BNG on any area lost to development. The benefit to a developer is greatest when on site net gain is being realised, however developers will often have other projects nearby to which they can offset. 

Additionally, farmers can realise payments for hedge cutting, sheep grazing and more on the solar site.

by  John Smith-Maxwell, a Rural Chartered Surveyor in Halls’ Estates Department