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Landowners put in ‘strong position’ by consistent solar rents

Posted by Lotty Reeves on 22nd April 2015

Solar rents have remained relatively high in recent years due to limited grid capacity and consistent demand for sites. This is putting land owners in a strong position, according to some land agents.

Ground rents have decreased slightly, but rates of more than £1,000/acre are still paid in southern England. In the north, rents of £600-£800/acre are more typical.

According to land agent Webb Patton, developers are looking to secure much longer rental terms. Instead of 26-year rental, some developers are looking to secure rental terms of up to 36 years.

According to Victoria Lancaster, Renewable Energy Adviser at H&H Land and Property, some solar firms are looking to large‑capacity, subsidy‑free sites due to uncertainty about the availability of funding over coming years.

However, due to recent changes to contracts for supplying low carbon electricity, some land agents predict that demand for new sites may fall. George Paton of Webb Paton said: “We may not be many years away from the solar bubble bursting.”

 


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