Page 6. Farming Express
Farmers beware 'rogue' solar developers
Farmers and landowners should be aware of 'rogue'
solar energy developers looking to lease land, warns
consultancy Carter Jonas.
A drop in government financial incentives for solar PV
projects across the continent had led to developers from
Germany and Italy, in particular, offering UK landowners
"below-market" terms for developing solar schemes, said
the company.
"Negotiating an agreement which meets the interest
of solar PV developers and landowners is a complex
business," said head of the Carter Jonas energy team
Andrew Watkin.
"A lack of appreciation of a landowner's position by rogue
developers offering what appears to be a quick-fix scheme
could leave the landowner exposed in the longer term."
Common issues reported in such offers included
unjustifiable option agreement periods which tied up
the land for unnecessarily long periods of time - option
agreements are typically for 12-24 months and should
only be extending if planning permission or grid
connection is awaited, he said.
In addition, poorly worded clauses could leave the
landowner financially liable to fulfil some of the planning
conditions and/or allow the company to automatically
renew the lease at the end of the term. Landowners were
advised to avoid automatic renewal and ensure the lease
was excluded from the provisions of the Landlord and
Tenant Act 1954 in terms of the occupiers' security of
tenure of the site and right to renew the lease, said Mr
Watkin.
"A scheme that has been brought to our attention recently
has tied three neighbouring landowners into a three-year
exclusivity arrangement by a developer, in order that a
fourth parcel of land could be developed further down the
line," added Mr Watkin.
"Unrealistically high rents were offered to the landowners
involved in the exclusivity agreement, with the developer
having full knowledge that the projects would not be
built-out and, in turn, rentals to the landowners would not
materialise."
Mr Watkin advised farmers and landowners to always
seek independent professional advice before signing up to
any solar