Green energy can make more money for landowners on their land – or mitigate any losses.
This is according to rural consultancy Davidson & Robertson (R&D), which said that landowners should not be afraid to explore green energy opportunities.
The move to green energy in Scotland will impact almost all farmers, even those whose land isn’t suited to turbines or solar panels, D&R said.
The National Grid said: “Over five times the amount of new electricity transmission infrastructure will need to be delivered in the next seven years than has been built in the past 30 years.”
These include renewable energy, energy storage, grid connections, access agreements, and electrical infrastructure.
D&R director and head of utilities, energy and infrastructure, Ian Austin, said:
“With this level of development both in production and transmission, landowners, tenants, and their businesses will inevitably be impacted by the works – but with this comes massive opportunities for new income streams.
“We have many years of experience dealing with such projects and spend time highlighting how farmers can financially benefit from the push for greener energy and crucially, how to do it without incurring costs.
“At our AgriScot seminar ‘5 ways green energy could make more money from your land (and it’s not just about turbines)’, we explained to landowners and land managers, how to make these projects work for their benefit.”
Renewable energy
The first way is through renewable energy.
Austin explained that Scotland aims to generate 50% of its energy consumption from renewable energy by 2030 “so there is a pressing need for more sites to house solar panels, wind turbines, and electric vehicle charging points.
“These pose a massive opportunity to create an income stream by working with developers.”
Land that is underutilised can be repurposed for housing renewables, and in some cases, the land can both house renewables and still be used for grazing.
This, Austin said, makes existing landholdings work much harder in delivering revenue for the business, without a need for the landowner or tenant to carry the costs of installation.
“Renewable energy opportunities can be on a micro farm level e.g., solar panels on shed roofs, or macro scale with large renewable developers building out large mega watt schemes,” he said.
Energy storage
D&R said the second way green energy can make more money for landowners is through energy storage.
“An amnesty by the Distribution Network Operator, means grid capacity has been freed up for development of battery energy storage systems,” Austin said.
“Even those who have previously investigated this potentially lucrative option and were told that there wasn’t capacity available for their site, might now have viability.
“However, it’s important to call out that this is a limited opportunity and interested parties will have to act fast to be able to exploit it.
“Due diligence is still important when choosing a developer so expert advice is important, and support is available to match prospects to a developer.”
Grid connections
The third way to make more money on land through green energy is grid connections, according to D&R.
Austin said wind turbine (onshore and offshore) and solar panel developers need to link their kit to the grid.
“These grid connections could impact multiple landholders as the connections travel across their land, which creates an opportunity for commercial incentives for granting the necessary rights over your land,” he said.
“A word of caution as there are also threats of compulsory purchase order powers being implemented, so support at an early stage from your agent will help you to effectively navigate this and maximise this potential income stream.”
Access agreements
Even if your land is not suited to turbines, it may still be impacted as they are transported to site, Austin said.
“Technology has advanced massively to produce turbines that can produce more energy more effectively, and this has meant that they are substantially larger as a result.
“This can pose a significant challenge in transporting them to site, and can mean that developers require access, even to very small proportions of properties along the access route.
“Access produces rent and compensation, and in many instances, can prove to be a substantial income stream.”
Austin said it is important to engage an agent at an early stage to support negotiations in your interest, which are essential to ensure you do not “fall foul of pitfalls”, and safeguard your business as well as maximising returns.
Electrical infrastructure
Austin said the huge increase in demand for green energy means that existing electrical infrastructure needs to be upgraded and new onshore connections built.
“The impact of this for farmers’ land and businesses is less about making money, and more about maximising value, mitigating loss, protection from short term and long-term impacts, and ensuring appropriate compensation,” he said.
“For all types of energy, negotiating terms on land requirements, extension of rights granted, along with return/ransom and non-exclusivity and termination agreements can add value to your property.
“Engaging with your agent for support in assessing options, accessing in-market developers, forming agreements, and making claims will ensure an optimal outcome for your business and could enhance its value.
“Accessing sound advice around how to do this is critical, and in most cases, costs for this support will be met by the utility provider.”
