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Sustainable energy deployment used to help safeguard the future of a Derbyshire farm

Project summary

  • Consultancy advice on a range of energy schemes deployed between 2015-2018 including a 500kW wind turbine, a 5MW solar park and a 6MW gas gen-set plant
  • To negotiate terms with three developers for option agreements/leases, to ensure the landlord was protected and maximising the available financial return from their land, given the technology being deployed

Solution

  • Review the likely financial performance of each project to understand the developer’s return and site value
  • Evaluate short, medium and long term risk to the client
  • Minimise the loss of farmland without compromising project viability
  • Agree base rent and profit share from the tenants to be guaranteed for the next 25-30 years

Benefits

  • Diversification of revenue streams from the farm
  • A one-off capital payment on entering the lease and guaranteed minimum rent on a solar park for 25-30 years, with a rental link to gross revenues
  • Guaranteed minimum rent for the 500kW turbine for 26 years, with a percentage link to gross revenues, offering an annual rental uplift
  • Further income secured via a lease entry fee for a gas generator plant and rental income for 25 years. The agreement includes the replacement of a dilapidated shed, erected at the tenant’s cost but for the clients' sole use at the end of the term. The tenant provided a decommissioning bond on lease entry to cover future costs of reinstatement
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