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Solar farm developers are paying farmers up to €1,000/ac to rent their lands to build solar farms.
The developers pay rent to the landowner for the term of the lease, which can often run to between 25 and 30 years.
For example, the average-sized solar farm which was granted permission in 2019 was 117.6ac.
At €1,000/ac, that land could harness an income of €117,600/annum.
One company, Highfield Solar Limited, says it takes “positive inflation movements into account” so that rental income “will never decrease”.
Another, Harmony Solar, “commits to paying a competitive market rent per acre, per year indexed linked”.
Sign-up fees
Sign-up fees are also paid by some companies when landowners sign what is called an ‘option agreement’.
This is often a two- to three-year agreement where the company looks at the land it wants to rent and considers whether it will go ahead with the development.
The Irish Farmers Journal understands some companies are paying between €1,000 to €2,000 for three-year option agreements.
SHARING OPTIONS: