Opportunities and complexities of renewable energy
Following COP26 and renewed commitments to renewable energy production, there will be plenty of farmers wondering if diversification into land-based solar and wind renewable energy systems is worth adding into the revenue mix.
Large scale solar grids on industrial roofs will not deliver the carbon savings needed – but a solar farm on low quality grazing land can.
The opportunity to lease land to green energy companies will be attractive to many farmers facing drops in subsidises following Britain’s exit from the EU. But with the potential returns comes significant red tape such as land access and grid connections.
With rental agreements likely to span decades, and which will be commercial leases rather than agricultural use, there are complexities over inheritance tax too.
If you’re considering diversification into renewable energy production or leasing land for it, it’s always worth seeking expert legal advice before signing on the bottom line.
Tom Devey, partner in the Agricultural & Rural Services Team at FBC Manby Bowdler
