Can I Move Developers or Bring a Renewables Project In-House?

So, your wind farm lease is nearing its end, and you’re considering a new direction. It doesn’t matter whether you want to change developers or are planning to move the project in-house. This handy guide will help you navigate the transition smoothly.

When your existing wind farm lease agreement comes to an end, you might not want to keep things the same.

If you’re weighing up your next steps, from researching new developers to securing electricity off-takers, you’re in the right place.

In this quick-fire guide, I’ll cover everything you need to know to make informed decisions at the end of your lease.

Can I Bring My Project In-House or Can I Change My Wind Farm Operator or Developer?

If a landowner already has a wind farm on their land, here are the options available.

Changing developers

It’s entirely possible to bring a project in-house or change developers. But this depends on whether a landowner has opted out of the Landlord and Tenant Act.

If they have opted out, a landowner will be able to freely change site operators. They’ll do this by researching similar sites and approaching viable options.

Once they’ve shortlisted their options, they can review proposals and choose a new site operator to extend planning permission.

They’ll also need to work closely with their new operator to secure other necessary consents and permits.

During this process, a landowner should give valid notice to their existing site operator as per their lease agreement.

I suggest starting at least 18 months to two years before your lease expires to set this process in motion.

This will give you all the necessary tools to enter your negotiation period with confidence.

Bringing a project in-house

If a landowner prefers to bring their project in-house, the first step is to look into equipment suppliers. A landowner will want suppliers that can maintain and operate the wind farm successfully.

Next, landowners will need to secure an electricity off-taker and carry out any financial due diligence.

If the project isn’t self-funded, taking it in-house will require identifying potential funders, carrying out financial appraisals and securing funding.

After this process has been carried out, landowners must extend planning permission. They’ll also need to secure any other relevant consents and permits.

Once a landowner gives notice to the current tenant they can agree on a plan for decommissioning the site. Otherwise, the landowner can purchase existing equipment.

And that’s it!

P.S.: If you want to learn how to keep even more of the money you earn, check out my commentary on the tax implications for wind farms.

FAQs

I often get asked about the ins and outs of wind farms.

So, if you’re wondering who owns the UK’s wind farms or whether farmers get paid decently to host turbines, I’ve got all the answers.

Join me as I uncover some of the most frequently asked questions about wind farms in the UK!

Who owns the most wind farms in the UK?

At the moment, Statkraft is the majority owner of four of the largest wind farms in the UK.

This includes Alltwalis, Andershaw, Berry Burn and Baillie Wind Farm.

Other major players are Hainsford Energy, EDF Energy, Scottish Power and Baywind.

How much do farmers get paid to host wind turbines in the UK?

The amount that farmers get paid always depends on their lease agreement and the amount of rent paid.

But generally, I’ve seen landowners receive a share of up to 20 per cent of the total income generated by their wind farms.

Do wind farms devalue property?

It’s often said that onshore wind farms can devalue a property by up to 12 per cent within a 2 km radius.

However, this isn’t a hard and fast rule.

From my conversations with our land agent partners at GSC Grays, I’ve discovered that turbines devalue land less than you’d think.

While I wouldn’t claim there’s no effect, the reality is more nuanced.

I spoke with Ashley Dodgson MRICS, Senior Surveyor at GSC Grays, who explained that:

While wind farms can devalue property to a certain degree, it does depend on the individual situation and the specific location of the project. The degree of blight on the landscape is relatively minimal even in high-value land areas. Luckily, most of the fears surrounding visual impact tend to be temporary and take place purely in the planning stages. As developers can’t predict exactly how much visual impact there will be from proposed turbines, local residents and landowners are faced with uncertainty. This seems to be the factor. Once a turbine is operational, residents quickly realise that the turbines are not as visible or noisy as they expected.

Ashley Dodgson MRICS, Senior Surveyor at GSC Grays

It’s worth mentioning that when there are wind turbines in an area, it can make it easier for surrounding neighbours to apply for permission for their own projects in the future.

Councils that have already approved a wind farm are more likely to green-light several more.

This isn’t a strict rule, but it’s certainly a pattern I’m noticing.

Plus, if neighbouring properties are impacted by access roads or maintenance, they often receive payment for this inconvenience.

When it comes to devaluation, the key thing to remember is that people often struggle to visualise how turbines will actually look.

Whether that’s down to poor renderings by developers or uncertainty surrounding a project’s scale, this confusion is understandable.

That said, with most property prices bouncing back within two years of a turbine’s completion, there’s usually little cause for concern.

How many barrels of oil does a wind farm replace?

According to the Green Finance Guide, a large wind turbine produces the equivalent of 200 barrels of oil a day. For reference, just one barrel of oil is enough to power a medium-sized car for over 280 miles or to create the wax for 170 birthday candles.

There You Have It: A Quick Guide to Changing Your Wind Farm Developer and Moving Your Project In-House!

If you’re still struggling to weigh up the pros and cons of switching things up, feel free to get in touch with our expert team.

Not only can we help you assess your site and make sure you’re maximising income, but we can also clarify any questions you have about major changes to your project.