It's a new dawn for solar power in Scotland - Susan Law

Large-scale solar power projects have the power to step out from the shadows as the Scottish Government targets a ten-fold increase in energy generation from the Sun.

It is a commitment which adds even further breadth to the ways in which landowners could diversify by becoming involved in the renewable energy industry.

Not only does it support the national drive towards net zero, it also helps with the increasing challenge of making their own enterprises more financially sustainable, particularly when it comes to farming.

Even before recent confirmation by Green Skills, Circular Economy and Biodiversity Minister Lorna Slater of the intention to generate between 4GW and 6GW of solar power by 2030, signs were emerging that solar farms could become a more common feature.

Susan Law is a Partner in the Rural team, Lindsays

Indeed, our team is advising landowner clients on a number of potential solar farm developments in different parts of the country, as we are on all manner of renewables projects.

While full details of how the increase in solar generation might be achieved are expected in the months ahead – including the use of the ground-mounted panels you see in solar farms – there are things that landowners who think they have suitable sites would be wise to consider.

As with any other renewable energy development, the temptation can be to quickly jump into an agreement which guarantees long-term income, it is advisable for landowners to understand the intricacies of contracts.

Solar farms have previously been relatively rare in Scotland’s green energy mix, particularly when compared to wind and hydro power projects.

About 25 acres for every five megawatts of power produced is a general rule of thumb for photovoltaic installations (Picture:stock.adobe.com)

There are some experts, however, who believe that photovoltaic installations north of the border can perform just as well as sites in southern England - where schemes have traditionally been more prolific - because of slightly longer periods of daylight.

Like wind turbines, solar farms can often operate on the same ground as sheep grazing, so not all productive agricultural land need be lost to developments.

A sensible starting point in negotiations is to ensure you are clear on how much land is needed. About 25 acres for every five megawatts of power produced is a general rule of thumb.

But it is not just the panels you need to consider. Just as with wind and hydro, space will be needed for the likes of battery storage.

A detailed understanding of access and services is also needed. Might cables need to be run over land that is not yours? What third party agreements may you need to have in place?

You also would not wish to find yourself unable to farm the majority of the land for arable or livestock, lose too many rights to claim farming subsidies or lose access to certain areas because you have not fully understood the detail around rights required for access, connecting to the grid or habitat management.

Tenants’ rights can also be a factor where agricultural or other leases are in place. How might they be affected?

Looking at the ownership structure of any development, it is also vital that you understand what the project and the income from it could mean, both for immediate tax efficiency and any succession plans that you may put in place, whether current or for the next generation..

As with all diversification opportunities, understanding is key to ensuring returns reach their full potential, environmentally and economically. It’s important that you know what the fine detail means for you, your business and its future.

Susan Law is a Partner in the Rural team, Lindsays