Renewable Energy

Renewable Energy Solicitors

If you are ready to discuss your project with our renewable energy law solicitors, contact us today via any of our offices in King’s Lynn, Wisbech, Ely, March or Downham Market. Or contact Daniel Ball, who leads our renewable energy law team, on danielball@fraserdawbarns.com or call on 01553 666606 .

With climate change ever present and a current drive to hit net zero carbon emissions by 2050, the current direction of travel for renewable energy projects is set to continue as the government strives to reach its interim carbon emissions target in 2035.

There is no doubt that energy generation is becoming an increasingly popular source of alternative income for rural businesses across East Anglia. Our specialist renewable energy solicitors are working with an increasing number of farmers and landowners across Cambridgeshire, Norfolk, Lincolnshire and Suffolk assisting them with the complexities and nuances of their renewable energy projects. From the outset, the team can work with your land agent on the heads of terms before progressing to legals when you will grant land rights to the energy developer. Our renewable energy law team is here to help you throughout the process from the heads of terms all the way to a built project and beyond.

Rural renewable energy opportunities

A renewable project provides a typical farm with an opportunity to diversify. This usually takes the form of an energy project on part of the farm, and the energy developer would pay a commercial rent for the land it occupies. Land will typically be used for battery storage sites, solar generation, wind farms and other smaller forms of generation which can include balancing frequency equipment. Commercial rents are paid for these sites which gives the farm a steady income stream alongside the variable income stream associated with farming.  With the government focusing on net zero carbon emissions targets, these approaches for new renewable energy sites are set to continue and East Anglian farmers and landowners are ideally placed to capitalise on the opportunities and diversify their farm.

Why do you need specialist renewable energy solicitors?

Farmers or landowners who are approached by energy developers for a renewable energy development need two types of specialist advice. Firstly, they need an experienced land agent to ensure the commercial terms surrounding the renewables project reflect the current market values. Then they need an experienced renewable energy solicitor to negotiate the form of legal documentation. The combination of land agent and energy solicitor is essential to covering off the nuances associated with your land and ensuring your energy project works for your farm.

Having professional advisers with the right expertise at the outset will help to ensure that nothing is missed and you get the best possible outcome for your circumstances.

How will a renewables transaction usually progress?

The developer will need to secure land rights with the farmer or landowner. The land rights will need to be in place before the developer applies for planning permission to use your land for a renewable energy project. This means that the developer must secure a right to the site whilst planning permission is obtained and that will typically take the form of an option agreement to grant a lease later. The landowner and the developer therefore enter an Option Agreement which can be used to grant a lease to the developer for the energy project when planning permission (and the remaining component parts) is in place.

Typically, the agreement is for a specified period and during this time the landowner is expected to support the developer in the procurement of planning permission.

As the landowner will be committing land under an option agreement there will be a fee payable to the landowner for this commitment.

Once the option is exercised, the developer will take their interest in the land which typically takes the form of a lease but could be an easement for cables.  The option itself would typically include a plan showing the extent of the property to be leased. It is not however sufficient for the landowner to simply grant to developer a lease of the property. The renewable energy project will need to be connected to the grid.

Obtaining planning permission is only one element of a successful renewable energy  project. If planning permission is granted, the renewable energy project needs to be funded. Whilst a landowner may be tempted to maximise the rent and commercial terms of the deal, it is important to bear in mind that the commercials of your deal maybe competing against other renewable energy projects.

Developers  will undoubtedly be taking a commercial view of the options and leases available to them and will generally choose those options and leases which generate the highest return for them.  It is therefore important to take a balanced view when negotiating the option and lease to ensure there is sufficient margin in the deal for all.

Experienced renewables lawyers to support your deal

Whilst you may be approached by a developer in connection with a renewable energy project only a few times, or even only once or twice, the developers have experienced multiple deals and are well-practised in the negotiation of options for renewable energy projects. A developer will have continuity and regular experience of dealing with landowners. It is therefore essential that the landowner employs a land agent and specialist solicitor with sufficient experience for the type of renewable energy project being negotiated. It will then be possible to gain that level of continuity that the solar developer has, and not miss an opportunity for important farm diversification.

The renewable projects in which our team can assist you include solar and battery sites; standalone commercial battery generation; anaerobic digestion; wind turbines and infrastructure projects including substation expansion and high voltage cables.

If you have been approached by a developer, either to sell part of your land or to place it under an option for a future renewable energy project, there are many different considerations, and we can help to guide you through these. So, as soon as you know you need a solar energy law firm to support you in your project, get in touch with our renewable energy solicitors.

Short term legal considerations for renewable energy projects

Our specialist renewable energy solicitors can advise you on:

• Agreements and obligations bestowed on a landowner when entering into an option agreement and what the landowner needs to be aware of before entering these types of agreement
• Commercial considerations such as future-proofing the landowner against additional professional costs which may come with these types of projects
• Working with your accountants to consider income streams and what vehicles or tax planning work needs to be undertaken at the outset to maximise your revenue
• What obligation should be bestowed on your developer in the short term to ensure the developer does not impact on your or your tenants or farming of the property.

Medium term considerations for renewable energy projects

• The terms of the lease and the covenants and obligations to be entered into as a landlord
• The likely impact of those terms on your future use of the farm, and how to maintain control of your farm whilst supporting the developer in the development of part of the farm
• Crop loss
• Direct agreements which may be required by the developer’s funder to be entered into with you as landlord
• The potential for surrender of part of the land to enable the construction of a substation or other infrastructure required by the distribution network operator.

Longer term considerations for renewable energy projects

• Decommissioning security and how best to ensure your land is returned to you in a fit state for arable use or, in event of it not being in a fit state, ensuring the necessary decommissioning security is in place to enable you to be compensated for any remedial works needed to put the property back into traditional agricultural use
• Options to renew the existing lease arrangement, equipment sharing and deeds of variation.

Specialist solicitors for your legal agreements

Our renewable energy solicitors can advise on all the following specialist agreements:

• Reviewing heads of terms for your renewable energy projects
• Drafting, advising on, amending and negotiating sale agreements, options and leases
• Drafting, advising on, amending and negotiating section 106 agreements if these are required to obtain planning permission for your project
• Direct agreements with the developer’s funder
• Decommissioning securities
• Sublease and deeds of variation for infrastructure required by the Distribution Network Operator (DNO)
• Assisting on transfers and head leases as part of your tax planning in the event of the renewable project being commissioned
• Co-operation agreements between parties looking to lay cables in close proximity to one another
• Power purchase agreements and wayleaves.