Negotiating a Solar Farm Lease

Background

Our client, an agricultural landowner, was approached by a developer seeking to lease part of their land for a solar farm, subject to planning approval. Having never entered into an option and lease agreement for renewable energy before, they required expert legal guidance to navigate the complexities of the deal while ensuring their long-term interests were protected.

Approach

We provided clear, practical advice on the heads of terms, explaining key legal and commercial implications. Our team negotiated and reviewed the option agreement, ensuring it safeguarded the client’s financial and practical requirements. We worked closely with the client’s accountant to address potential tax implications and liaised with their agent to ensure favourable commercial terms. Maintaining consistent communication, we kept the client informed at every stage through in-person meetings, calls, and emails.

Outcome

The option agreement was successfully exchanged in 2020, and the developer obtained planning permission in 2023. Construction of the solar farm is now underway, with the developer paying rent to our client. This agreement has provided a valuable, diversified income stream, supporting the client’s long-term financial stability while contributing to the growth of renewable energy infrastructure.