Solar farms and land diversification: a guide for landowners
Solar farms, also known as solar fields or solar parks, are large-scale applications of solar photovoltaic (PV) panels that generate green, clean electricity, usually to feed into the national grid. Solar farms can cover anywhere from 1 acre to 250 acres and are usually developed in rural areas.
Approximately 25 acres of land are required for every 5 megawatts (MW) of installation – see our checklist below to find out if your land may be suitable.
As well as providing you with an additional income stream, there are a host of other environmental benefits associated with solar farms. Embracing solar farms as part of your land diversification strategy contributes to a sustainable and prosperous future both for you, your family and society as a whole.
What are the benefits of solar farm land diversification?
Solar farm development can offer landowners a range of financial, environmental and strategic benefits.
Stable, long-term rental income
Leasing or selling the land for solar farm development provides an increased, diversified and stable source of income for you as a landowner. This can enable financial security and potential long-term revenue streams.
Reversible land use
Solar farms offer a time-limited, reversible land-use option for landowners. Unlike permanent infrastructure, such as buildings or roads, solar farms can be decommissioned relatively easily, allowing the land to be repurposed for other agricultural or developmental activities in the future.
Efficient use of land
One remarkable aspect of solar farms is their ability to generate substantial electricity while occupying a relatively small portion of land. For instance, installing 10,000 megawatts (MW) of solar capacity on the ground in the UK would only utilise 0.1% of the country’s agricultural land area. Despite occupying a small fraction of available land, this solar capacity could generate enough electricity to power over 3 million homes. This efficient land use allows agricultural activities to coexist with renewable energy generation.
Renewable energy generation and carbon reduction
Solar farms have a significant impact on energy production and carbon reduction. With every 5 MW of installed capacity, a solar farm can annually power more than 1,500 homes. Considering the average annual household electricity consumption of 3,300 kWh, this represents a substantial contribution to meeting energy demands. Moreover, the environmental benefits of solar farms are evident in the reduction of carbon dioxide (CO2) emissions. A solar farm with a 50 MW installation can save approximately 21,500 tonnes of CO2 annually, contributing to mitigating climate change and improving air quality.
Grid resilience and energy independence
Distributed solar farms across various locations contribute to grid resilience and energy independence. By decentralising energy generation, solar farms reduce the dependence on a single centralised power source, minimising the risk of widespread outages. During extreme weather events or natural disasters, solar farms can continue generating electricity, providing essential power to nearby communities. This resilience helps ensure a stable and reliable energy infrastructure.
Biodiversity and land conservation
Solar farm land diversification can incorporate conservation measures that support local ecosystems and biodiversity. By implementing pollinator-friendly vegetation, such as wildflowers or native grasses, solar farms can serve as habitats for bees, butterflies, and other beneficial insects. These efforts help preserve and restore wildlife populations, enhancing biodiversity in surrounding areas. Additionally, by preventing agricultural land from being converted to urban or industrial uses, solar farms can help conserve valuable natural resources.
Local economic and community benefits
Solar farms can have a positive impact on local communities by fostering economic development. During the construction phase, solar farms create job opportunities, providing employment for local workers and boosting the local economy. Furthermore, solar farms can establish partnerships with neighbouring communities, supporting educational initiatives, renewable energy awareness campaigns, and community-based projects. This collaboration promotes a sense of ownership and involvement in the transition to clean energy, creating a more sustainable future.
Is my land suitable for a solar farm?
Solar developers consider several factors when assessing land for a potential solar farm. Our checklist provides an initial guide, but a full assessment will be required before a project can proceed.
1. Is the land suitable in terms of its slope and orientation?
Flat or gently sloping land is generally more suitable for solar development. The gradient and orientation of the proposed site can affect the design, construction and efficiency of a solar farm, as well as access requirements.
2. Is there suitable access to the site?
Good access is important during both construction and the operation of a solar farm. Construction vehicles and contractors will need to access the site, and a developer may need to create a new access or improve an existing road or track.
Any proposed access arrangements should be considered alongside the rights that a developer will require over the land.
3. What is the condition of the ground?
The geology and condition of the site can affect the construction of a solar farm. Rocky ground, for example, may make it more difficult to install foundations or mounting systems.
The developer may also need information about soil conditions and topsoil depth when assessing the site’s suitability.
4. Is the land in a protected landscape?
The location of the proposed solar farm will be an important planning consideration. Sites within or close to protected landscapes, including National Parks and Areas of Outstanding Natural Beauty (AONBs), may face additional planning and environmental considerations.
Being located within a protected landscape does not necessarily mean that development is impossible, but the planning implications should be assessed at an early stage.
5. Is the site visible from nearby roads or properties?
The visibility of a solar farm can be an important planning consideration. If panels and associated infrastructure are clearly visible from roads, properties or public rights of way, the potential landscape and visual impact may need to be addressed.
Screening, planting and the layout of the development may help to reduce visual impact.
6. Is there significant electricity demand on the property?
If the land forms part of a commercial or agricultural property with significant electricity consumption, it may be worth considering whether the proposed solar installation could support on-site energy use as well as, or instead of, exporting electricity to the grid.
The appropriate arrangement will depend on the property’s energy requirements and the available grid connection.
7. Where is the nearest electricity substation or grid connection?
A suitable grid connection is one of the most important considerations when assessing land for a solar farm.
The distance between the site and the point of connection can affect the cost and technical requirements of the project. The available capacity of the local electricity network is also critical.
A developer may need rights to install electricity cables beneath your land and, potentially, neighbouring land. The project may also require rights to install and maintain a substation or other electrical infrastructure.
Carefully consider these rights when negotiating any option or lease.
8. Is there already solar PV on the property?
If solar PV is already installed on the property, the potential impact of a new solar development should be assessed. There may be implications for existing arrangements, electricity connections and any applicable financial incentives.
A developer will need to understand the existing installation and its connection arrangements before progressing a new project.
9. Are there other solar farms or wind farms nearby?
The existing electricity generation capacity in the local area can affect the availability of a grid connection.
A high concentration of solar or wind generation may affect the network’s available capacity and the timing, cost or feasibility of securing a connection. This makes early consideration of the grid connection particularly important.
How does the leasing on a solar farm work?
As a landowner, typically you will receive rental income on the leased land, in exchange for a rental income for a fixed number of years – usually around 30 years. Rental payments are index-linked, rising annually with inflation and made in advance from the point at which construction of the site begins.
The lease will also cover important issues such as:
- the developer’s rights to access the land;
- rights to install and maintain cables, substations and other infrastructure;
- planning and grid connection requirements;
- construction and operational obligations;
- insurance and liability;
- rent and any additional payments;
- restrictions on the landowner’s use of the remaining land;
- assignment or transfer of the lease;
- decommissioning and reinstatement at the end of the project; and
- what happens if the solar project does not proceed.
Solar farm agreements can involve several stages before a lease is completed, including an initial option or exclusivity agreement while the developer investigates planning and grid connection requirements.
Landowners should take specialist legal advice before signing any agreement, as the terms agreed at the outset can have implications for the value and future use of the land.
How Tees can help
The experienced renewable energy team at Tees can advise both developers and landowners at every stage of the property aspects of a solar project. This includes all stages from the early lease negotiations, through to helping secure funding and offering ongoing assistance with the operation of the solar site throughout the term of the lease.
