A new kid on the block in the green energy sector has resulted in many questions that have and will challenge tax professionals. Many farmers are looking seriously at leasing or licensing their land to solar companies. Even in the absence of a guaranteed feed-in tariff (FIT) from the Government, attractive revenue streams in the region of €700 to €1,300 per acre are being discussed between farmers and solar development companies.

A definitive Revenue statement has not yet been issued on a number of tax-related aspects. However, some guidance is available and the Department of Agriculture has got confirmation that Revenue will allow favourable treatment of land for leasing in certain circumstances.