In 2020, there has been an increased interest in solar and windfarm companies looking to enter into option agreements to acquire land to potentially erect solar panels or wind turbines.

While this is a potential game changer for the agri-sector and its contribution to the reduction in carbon emissions, ambiguity exists regarding some of the tax treatment of the renewables systems. The typical contract that a solar or wind farm company is looking to enter into with the land owner is broken down into a number of sections and needs careful legal and tax consideration.