Renewable energy projects such as solar farms are becoming increasingly popular options for diversifying rural businesses.
A relatively simple concept for the landowner, effectively becoming landlords to the solar operators, but what are the recent changes, as well as the challenges and benefits? Thrings’ Partner Eve Laws takes a look at what you need to know.
What has changed?
Back in December 2024, the government overhauled the planning system with a new National Planning Policy Framework (NPPF), ushering in a wealth of significant changes to drive their priorities on home delivery and infrastructure, with reforms aimed at streamlining the process for large-scale renewable energy projects.
Under the recent changes, the threshold for which solar farms are classified as Nationally Significant Infrastructure Projects (NSIPs) has been increased from 50kw to 100kw, allowing for a greater number of mid-sized sites to be considered by local planning authorities for planning permission, instead of being reviewed by the Secretary of State under a Development Consent Order.
In theory this change is meant to make the process quicker by having more decisions made locally, as opposed to being processed at a national level, with LPAs required to prioritise the benefits of renewable energy and its contribution to net-zero goals. This, however, might not always be the case given the likelihood of local objections also influencing the decision-making process.
This year will also see much needed reforms to the electricity grid connection process. ensuring only projects that are ready to progress can move forward, which will help the government achieve its clean energy 2030 target.
How does solar compare to the alternatives?
Diversifying farmland can come in many forms. Whether you are planning to create a solar farm, open a farm shop or restaurant like Jeremy Clarkson, or are looking towards natural capital initiatives, such as generating credits through biodiversity or nutrient neutrality schemes, there are a range of options you can consider to better utilise your land for additional income, each coming with their own benefits and challenges.
Utilising land for a solar farm lightens the demand on the landowner compared to, for example, running a shop, with the planning process and maintenance for the facility being the responsibility of the operator.
It also means that the landowner will get a steady income from the lease as opposed to natural capital options that are a set amount, either in one-of payments or instalments.
The challenges, however, can be geographical in nature, which is less of an issue for BNG or holiday lets. Any proposed site would need to be in a location where you can get a grid connection, which in itself is a delayed process – solar operators applying for grid connection can be given a date six-to-eight years in the future which is not helpful for generating immediate revenue.
Eve Laws, Agriculture specialist and Partner in the Thrings Clean Energy team and Development of Land teams said: “For many landowners seeking to diversify the use of their estates, the big questions will be whether the projects they have in mind will ever happen and, if they do, how long it will take and how much income it can generate.
“When it comes to solar farms, the wait to get projects off the ground might be longer than the alternatives but they are likely to generate a larger and steadier stream of income with minimal responsibility sitting with the landowner once it is up and running. We would certainly recommend that professional advice is taken at the earliest possible opportunity to ensure the plans are viable.
“The recent changes to planning rules signify the government’s desire to speed up the process with more decisions being made at a local government level, but this perspective should be taken with caution and any such plans should be considered with the utmost care to ensure local support for the process to run smoothly. “
Thrings’ Clean Energy lawyers include specialists from across the firm and its disciplines, bringing together a wide range of talent and expertise to advise commercial developers, farmers and landowners on the legal aspects of clean energy, natural capital and biodiversity. Get in contact to find out more.