Serving the farming industry across East Anglia for over 40 years
Understanding available options will be key for farmers contemplating using land for wind or solar farms. Even landowners not considering this kind of scheme... Why renewable energy plans could be life changing for farmers

Understanding available options will be key for farmers contemplating using land for wind or solar farms. Even landowners not considering this kind of scheme may have power generation infrastructure forced upon them via Compulsory Purchase Orders.

Energy Secretary Ed Miliband has already approved three large-scale solar farms that were previously stuck in planning to highlight a significant shift in policy. I expect government moves to trigger more projects.

Proactive projects

We are probably involved in 40 to 50 projects across the north of England alone – and the majority are grid-scale solar and battery storage sites. We have also been working with a number of clients on wind projects.

Some of the most proactive are almost ready to go to market.

In most cases the farmer isn’t involved in running, managing, or building the projects – they are ultimately leasing their land to a developer for a period of time, and they receive an annual income from it.

“It can be life changing as solar farms rents at the moment range from £850 to £1,200 per acre per annum, so it provides a really good, guaranteed income for the landowner with payments typically indexed to inflation and lasting 40 years or more.

Stable income

These long-term, stable income opportunities are particularly appealing in an industry often characterised by volatility. We’ve seen a big influx of solar schemes over the last five years, largely because the financial viability of the projects has improved.

What’s happened more recently is that the price of the equipment, such as solar panels and batteries, has come down, and, of course, the energy price has gone up. Suddenly, these projects are viable on their own.

The question of grid capacity remains a factor and Wallis points out the national system was designed with central power stations feeding out power, rather than sporadic generation sites feeding power back in.

As a landowner you need grid connection, there needs to be capacity within the grid, and finally you need planning consent. Often, we come across clients who like the idea of a renewable energy scheme but fall short on one of those three factors.

To get anywhere near the government’s target of creating a zero carbon energy system by 2030, the amount of (grid) infrastructure, the government will have to implement over the next five years is going to be vast.

Grid queue

Compulsory Purchase Orders are the government’s way of putting this infrastructure in place, sometimes without consent from the landowner.

Some of our clients at the moment stuck in the grid queue, where they’ve made an application, potentially have planning permission or are going into planning, but haven’t been able to connect to the grid.

While renewable energy schemes offer great opportunities during their operational phase, it’s crucial to plan for what happens at the end of the term.

Decommissioning costs can be substantial, so it’s essential to factor this into the planning process from the outset. Early advice, including tax planning and the technical details of contracts, is vital for anyone considering a renewable energy project.

John Wallis is a chartered surveyor at GSC Grays. For details, please vist www.gscgrays.co.uk

More farmers could benefit from generating income from renewable energy, says the trade association representing the solar power sector.

Revenue from solar power could be a useful source of farm income at a time when growers and livestock producers face the ongoing uncertainty of unpredictable commodity prices and changes in farm policy, said Solar Energy UK.

“Compounded by external factors such as the cost of energy, inflation, changing subsidies and economic volatility, a perfect storm of crises is pushing farm margins to the brink,” it warned.

Potential revenue

An online survey launched by Solar Energy UK aims to understand the pressures faced by farmers, landowners and those working in the agricultural sector – and the extent to which renewable energy could be a new income stream.

Chris Hewett, chief executive of Solar Energy UK, said: “We believe the perspectives of farmers have been largely missing from the national conversation on farm diversification and renewables.

“We want our survey to assess the acute challenges farmers have faced this year, from turbulent energy prices to the weather.”

Mr Hewett added: “With margins squeezed to near breaking-point, it explores solutions to mitigate uncertainty in fallow periods and asks farmers to what extent diversification could help them maintain their livelihoods.”

Solar Energy UK believes renewables – including solar, wind, battery energy storage or anaerobic digestion – present a significant opportunity for farmers to generate a more predictable and sustainable income stream.

The survey results will be compiled into a national report to inform discussions on the government’s farming and energy policy. Mr Hewett says this will ensure farmers’ voices are heard in the debate.

Taking less than 10 minutes to complete, survey participants will go into a draw for a £100 gift voucher.

To take part, please visit the website www.farmingsustainably.co.uk