How Much Do Solar Farms Make in the UK?

For landowners considering solar, one of the first and most important questions is: “How much do solar farms make?”.

And it’s a good question, because solar projects aren’t just about sustainability or land use. They’re about opportunity. The right project, in the right place, with the right lease structure, can generate reliable long-term income for decades.

But as with any renewable energy asset, the numbers vary depending on the deal you strike and the specific characteristics of your land.

In this blog, I’ll break down the income potential of commercial solar farms in the UK, how landowners typically get paid and the key factors that influence what you could earn across the lifetime of a project.

How Much Do Solar Farms Make on Average?

Let’s start with some topline figures based on the average performance of a solar farm.

Typical output per megawatt (MW)

A 1 MW solar farm in the UK generally produces between 950 and 1200 megawatt hours (MWh) per year, depending on location, panel tilt and irradiation levels.

At an average wholesale electricity price of £90 to £110 per megawatt-hour (MWh), this translates to:

1000 MWh × £100 = around £100,000 in gross revenue per year

This is what the project earns before considering developer costs, taxes or your lease income. The amount a site operator ends up paying will depend on your lease negotiations, but it will be a smaller portion of this final figure.

We estimate that the average UK commercial solar farm is somewhere around 10MW in capacity.

So, if we take this into account, we’d be looking at the following figures in gross revenue per year for the average project:

10MW x £100,000 (as calculated above) = £1 million.

Understanding Solar Capacity and Output

Solar farms operate differently to wind farms in one crucial way; they generate most of their output in spring and summer months and typically during daylight hours only.

While wind turbines often have a capacity factor of anywhere from 20 to 50 per cent, most UK solar farms average just 10 to 12 per cent.

This means that for every 1 MW of installed capacity:

• Solar: 1000MW/year
• Wind: up to 3,000MW/year (same installed size)

You’ll typically see the following pattern:

• June to August: ~40 to 45 per cent of annual generation
• December to February: ~5 to 10 per cent

This seasonal spread doesn’t affect your fixed rent. But if your lease is linked to turnover, it will influence when (and how) you’re paid.

How Do Landowners Earn Income?

You’re not usually running a solar farm yourself unless you’re taking on a project as a landowner-developer.

Instead, you’ll usually lease your land to a developer, who builds and operates the project. Your income is defined by the lease agreement you negotiate, and that’s where the opportunity lies.

In my experience working with landowners, I see three common structures for solar farm payments:

1. Fixed rent

A guaranteed annual payment per acre of land leased, unaffected by the actual performance of the site.

For example, some landowners receive approximately £1,000 per acre for commercial-scale sites. This figure is often index-linked to inflation (CPI or RPI), which should mean that your income increases gradually over time.

For example:

• If you have 30 acres × £1,000/acre = £30,000/year
• Over a 30-year lease, this will be around £900,000 before taking inflation into account.

2. Turnover rent (revenue share)

Rather than a fixed amount, you receive a percentage of gross project income.

Here’s an example of a typical turnover rent in the UK solar sector (which will depend on project size and developer terms).

• A 5 MW site generating £500,000/year might pay a 4 per cent turnover rent = £20,000/year

3. Hybrid lease model

Many newer leases combine both: a base rent for security, plus a share of project revenue above a set threshold.

Example structure based on 7% rent at  a minimum of £20,000.

• £500,000 x 7% = £35,000

This structure is increasingly common for mid-sized projects and institutional developers.

Side-by-Side Comparison of Solar Payment Models for a 5MW Project

What Affects Solar Farm Income?

The amount of income you get from a solar farm isn’t just based on how sunny your land is.

There are five main factors that shape how much your land could generate (and how likely a developer is to make you an offer).

1. Solar irradiation and location

The more sun your land gets, the more power the system produces.

South-facing land in counties like Kent, Devon, and Lincolnshire can see over 1,100 kWh/kW/year, while parts of northern England may be closer to 950 to 1,000 kWh/kW/year.

Even small differences in irradiation can significantly shift project returns – which is why developers often conduct detailed site studies before making a formal offer.

2. Grid connection viability

The viability of a solar farm hinges on how easily it can connect to the electricity Grid.

Sites near substations or high-voltage infrastructure are more attractive to developers. In contrast, land in constrained areas like the South West or North Wales may face five to 10-year wait times for connection.

I always advise landowners to ask for a Grid feasibility check before progressing too far.

5. Technology and repowering potential

Solar panel efficiency is now up to around 22 per cent for certain models. So, newer projects are more productive per acre and have lower maintenance costs.

Some leases allow for repowering, which involves replacing panels during the lease term. If structured correctly, this can raise your income in the second half of a project.

Planning and Environmental Considerations

While solar projects tend to be easier to gain planning for than wind, they’re not without challenges.

The following issues can delay or derail development:

• Glare or visual impact near residential areas
• Flood risk on low-lying farmland
• Ecology concerns (e.g. proximity to hedgerows, protected species)
• Local plan compliance – some councils now oppose large-scale solar unless developers can guarantee net biodiversity gains

Early community engagement, visual mitigation plans and biodiversity net gain strategies are often needed to gain support.

Worked Example: 30-Acre Solar Farm

Before I move on, let’s round things up by covering what you might stand to gain as a landowner from a 30-acre solar farm.

• Site: 30 acres
• Capacity: ~15 MW
• Revenue: £1.5m/year
• Lease: £27k/year plus 7% turnover rent

The overall income you’d receive would be £27,000 to £105,000 a year. Over 30 years, this could be upwards of £3.2 million (excluding indexation).

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How Much Would a Larger Solar Farm Make in Total?

If we’re looking at a much larger site, you could stand to make a lot more.

• Site: 50 acres (~25 MW)
• Revenue: ~£2.5m/year
• Turnover rent: 7% (subject to £27,000 a year in minimum rent)

For a project of this size, a landowner could expect to make around £175,000/year. Over the course of a 30-year lease, this could net you up to £5.3 million.

Final Thoughts: What I’ve Learned Working With Landowners

I’ve worked on dozens of solar projects, and the truth is, the lease you sign determines the value you receive. It’s not always about the size of the site or how much irradiation it has. The true value lies in a strong lease and rock-solid contract terms that start right at the option agreement stage.

I’ve seen developers include storage rights without offering additional payment. And I’ve seen people misjudge income based on over-optimistic project figures and planning outcomes.

The best outcomes always start with clear expectations and a solid strategy. And that’s where we come in.

If you’re weighing up solar or want a second opinion on a lease offer, just get in touch. We’re here to help you make informed, confident decisions that stand the test of time and help you make the most of your land.