Owning and managing land in today’s financial landscape can be challenging – costs are high, margins are tight, and the future is uncertain. Leasing your land for a solar project is one way to help increase stability and diversify your business, securing long-term, index-linked income for your farm for decades to come, and you can still farm the land once the panels are in place.  

Solar is becoming an increasingly popular option for farmers and landowners across both the Republic of Ireland and Northern Ireland – it pays out regardless of the weather, comes with decades of guaranteed income and has the added benefit of having significant positive impacts for the land, the local community and the environment. Every solar project generates clean, renewable electricity for businesses, utilities and communities, and contributes towards meeting vital government targets aimed at lowering emissions and diversifying energy mixes. 

The financial proposition of a solar lease is an attractive one – solar projects have lifespans of up to 40 years and involve long-term leases. The rental income offered is usually paid per acre, above standard agricultural lease rates, and is fixed and index-linked. These leases provide a secure and diversified revenue stream for years to come, helping to keep farms in the family and manage estate planning. Additionally, farm rental income is considered a favourable revenue stream by banks and lenders, which has allowed solar farm landowners to successfully secure further financing using the rental income. Solar farms are the perfect place to graze sheep, and many landowners find that renting land for solar means they’re able to make the acres generate two streams of revenue – income from the panels and income from a flock. Solar panels provide shade and shelter for sheep, while the secure fencing offers protection from predation and harassment. Research from across the world, from America to Australia, suggests that solar grazing is a win for your sheep and your bottom line.  

As well as financial benefits, a solar lease can be a bonus for land quality. The disruption to the land from the solar panels is minimal, and land is returned to its original state or better when the lifespan of the project is up. There is also research which suggests the quality of soil under solar panels improves during the duration of the project. Diversifying the energy mix, aiding food production, and delivering long-term income - solar is a win-win-win proposition. 

The positive impacts of solar projects don’t stop at the site boundaries. Solar projects developed in the UK are subject to business rates, and projects in the Republic of Ireland are subject to commercial rates, which are paid to the Local Authority. This means that the Local Authority will benefit from hundreds of thousands of pounds or euros across the lifespan of each project, potentially even millions, in taxes related to the project. The business or commercial rates paid by the owner of the solar farm on your land could go towards improvements to local services such as schools and community assets, meaning that the project has benefits that go beyond sustainable energy. 

 Lightsource bp is a leader in UK solar and to date have developed around 20% of the operational large-scale solar in the country. We’ve got a superb local track record, making us the ideal partner for any landowner looking to make the most of their land, secure long-term income and contribute to accelerating the energy transition.