How a Landowner Consortium Can Negotiate Better Solar Energy Deals

Farmers and landowners can enhance their negotiating power by collaborating with nearby landowners when seeking to lease land for major solar energy projects.

According to Rob Paul, a consultant based in Shropshire at RP Rural & Energy, there is still a notable amount of activity among developers focused on large-scale solar initiatives.

These large “transmission-scale” projects are capable of producing several hundred megawatts of electricity and often require significant land areas—an illustration being a 500MW project, which might need approximately 800 hectares.

When grid capacity opens up in certain regions, developers find themselves vying to secure land from owners, often presenting different incentives to various individuals.

Moreover, landowners may hesitate to discuss the offers they receive, worried about straining relationships with their neighbours. This can lead to misinformation spreading within the community.

For further insights, check out: Solar Lease Opportunities – What to Consider

“However, being proactive and forming a consortium with local landowners from the outset can mitigate this risk,” Rob advises.

“Such collaboration can significantly boost their negotiating leverage, possibly resulting in higher rental offers for all parties involved and giving them a larger role in determining site designs,” he adds.

Experience with group projects indicates a potential 10-20% increase in rental income when landowners work together as opposed to negotiating separately with developers.

“Developers can benefit from considerable economies of scale,” he continues.

“This includes having a unified point of contact for professional guidance and legal services, simplifying interactions instead of dealing with numerous firms for different landowners.”

As we approach the changes in the National Grid’s new connection queuing system in 2025, the importance of timely actions is rising.

The revised system will prioritize projects that demonstrate progress with land negotiations and planning efforts, he explains.

Getting Started

Deciding whether to commit land to a large-scale energy project can be overwhelming, and rushing into agreements—even when offers appear tempting—is not advisable, Rob emphasizes.

“If a developer reaches out to you, the best first step is to consult with a specialist regarding the proposal to determine the best path forward before making any commitments.”

Successful collaboration likely requires an impartial facilitator to lead the initiative, preferably someone with expertise in the field who can help pinpoint the right developer and coordinate among landowners.

It is often feasible to negotiate the developer covering the expenses for landowners seeking professional advice, regardless of whether the project moves forward.

Collaborative projects can face inherent challenges, especially regarding location and access to grid connections, which are critical to project design.

For instance, the landowner nearest to the grid connection point is typically designated to host the substation alongside any battery storage, which can yield a higher rental income compared to just solar installation.

The base rental fees for battery storage generally range from £1,500-£2,000/MW (around 62MW/ha), while starting prices for solar panel land rentals begin at approximately £2,500/ha.

“In a perfect scenario, it would be ideal to think that all rental income could be evenly distributed across the group, but that’s often not practical,” he notes.

“Nevertheless, there may be opportunities to share some income by capping battery rentals while increasing solar rents, but such arrangements would depend on discussions among all parties involved, which could be complex to negotiate.”