How to Secure Land for a Wind Farm Investment as a Developer

If you’re wondering how to secure land for a wind farm investment as a developer, you’re in the right place!

In this detailed guide, I’ll run through everything you need to consider before signing a contract with a landowner.

From initial research to securing a solid commitment and avoiding disputes, I’ve got you covered.

While mutual respect and communication are essential when negotiating with landowners, there are a few extra steps you can take to go above and beyond.

Keep reading to discover valuable insights that you might not have considered.

Things to Think About When Trying to Secure Land for a Wind Farm as a Developer

1. Planning permission and research

When figuring out how to secure land for a wind farm investment as a developer, the first thing you’ll need is thorough research. After all, starting a new wind farm project is no easy feat and requires a LOT of planning.

First, you’ll want to ensure planning permission can be obtained for the site. This process became particularly challenging after David Cameron introduced a de-facto ban on onshore wind in 2015.

The guidelines stipulated that:

• Turbines had to be located in an area identified as suitable for wind energy in a local or neighbourhood plan.
• The planning impacts identified by the local community had to be fully addressed, and the proposal needed their support.

Meeting both of these requirements was virtually impossible, leading to a significant slowdown in new onshore wind projects after 2015. From my own 2023 research, just 20.8 per cent of local authorities had allocated suitable areas for wind development.

Between 2016 and 2022, only 16 wind farms were built in the UK, compared to 435 between 2011 and 2015. Now, that’s quite a decline.

The light at the end of the tunnel

Luckily, Labour’s announcement on July 8, 2024, is set to loosen planning requirements for new wind projects. By removing two footnotes from the National Planning Policy Framework (NPPF), Labour has essentially lifted the de facto ban on wind projects in the UK.

Not only does this remove the requirement to satisfy the local community but it also reduces the role of local authorities in the process.

Local authorities, often overburdened with other tasks, typically lack the resources to allocate suitable sites for wind development. This led to delays in planning approvals and stunted wind development.

Although the full effects of this announcement are still unfolding, I’m optimistic it marks the beginning of a new era for wind developers around the country.

How can you improve your research?

In my experience, doing your research is vital when it comes to securing the right site for a wind farm investment.

I advise starting with a list of wind farm projects that have been neglected or decommissioned in the past.

These sites can often be hidden gems or fixer-upper-type sites that can turn a decent profit with a bit of investment.

It’s also worth looking for sites that are up and running but are nearing the end of their contracts.

These projects typically require less upfront investment, and you may be able to offer the landowner a more attractive deal to take the site over.

The key challenge here is outbidding the current developer’s offer to secure a decent deal for both parties.

Failing that, consider whether there’s land available near an existing wind farm that could be used.

As the existing site would already have obtained planning permission, the chance of a neighbouring site being approved is far higher.

This means you could either approach the same landowner or a neighbouring one who may be interested in hosting a new project.

That said, investing in a site with existing planning permission will always be the most straightforward route, saving you time and potential headaches in the early stages.

2. Try and get a solid commitment from a landowner

So, you’ve established a list of possible sites. The next step in securing land for a wind farm investment as a developer involves getting an option agreement. This will need to be written up and signed for a specific period.

During the option agreement’s lifetime, you can carry out further checks on the viability of the project. This will include securing planning permission and arranging financing.

You may have a good relationship with the landowner. But you will need to go above and beyond at this stage. There will likely be several developers vying for the same site, and you need to stand out.

If you’re not able to offer the landowner an appealing set of terms, you may well be outbid.

3. Respect the land

I’m often asked about underrated factors in securing land for a wind farm investment as a developer.

My advice? Respect the land.

This becomes more relevant once the deal is done, but respecting land from the outset sets the stage for a strong relationship.

Many landowners I’ve spoken to over the years have voiced frustrations about trampled farmland, gates left open or general disregard for their property. Since this land is their livelihood, showing basic appreciation and respect for the land is a common courtesy.

Before making an offer, ask the landowner about any past issues. This shows you take their concerns seriously and helps prevent future conflicts, keeping your relationship on good terms.

4. Go local and have a community focus

It’s one thing to appeal to a landowner by promising to engage with their local community – standing out as a project developer is another.

Many landowners have strong ties to their local community, and showing a commitment to their community can go a long way.

For example, if you’re working with a Scottish landowner, hiring Scottish contractors from the local area can show a vested interest in the community.

Equally, if you’re communicating with a Welsh landowner, a signoff in Welsh can be a small gesture that can go a long way.

Getting on a first-name basis with any prospective landowners early on helps to show you’re interested in more than just the financials.

A strong project developer/landowner relationship also means that you’re more likely to resolve disputes amicably if they occur, saving time and money.

If you can, try to involve landowners in decisions about how money from the project is spent, such as offering a community fund.

Whatever approach you take, keeping open lines of communication is crucial.

5. Avoid disputes by having open communication

Actively involving landowners in decisions can work wonders.

One of the easiest ways to do this is by having a dedicated contact to handle any queries.

Treating the landowner as a valued partner, instead of a money-making tool, is essential for long-term success.

Good communication can also work in your favour.

I recently spoke with a landowner who offered to build and maintain access roads for a small fee.

By helping him feel more a part of the project and its daily operations, trust was easily developed between the landowner and project developer.

After all, this isn’t just a tenancy you’re trying to establish – it’s a long-term partnership.

6. Gauge their opinions on current developers or project developers

If a landowner has a strong relationship with their current project developer, convincing them to switch may be a tough sell.

Before making an offer, it’s important to assess the existing relationship between both parties.

If a landowner is coming to the end of a current contract and isn’t overly happy with their operator, you’ll be in a strong position to present a more competitive offer.

First, you’ll need to check that the site is high-yield enough to justify any additional investment. You can do this by assessing the site’s income and output history.

If the landowner seems interested but hesitant, you can add a sweetener to the deal.

A bonus payment is one option, but offering to transfer Grid connection rights can also be appealing.

This way, they’re free to do with the connection as they please once the project is decommissioned. This is a major advantage, as securing a Grid connection can be both time-consuming and costly.

7. Offer to arrange access visits

One of the best ways for a landowner to make additional income from a wind farm project is by organising access visits.

But landowners often don’t have the time (or will) to organise these visits on their own.

Educational visits, particularly for local schools, are popular. Offering to assist with a few trips each year can strengthen your relationship with the landowner.

Not only will this boost income for the landowner, but it’ll show them that you genuinely care about showcasing the project.

In other words, it’s a real win-win.

8. The importance of reputation and the management of existing projects

For project developers with existing projects, a strong reputation can make all the difference in securing a new project.

If you have a history of turbines going down or excessive maintenance being required, it could affect negotiations.

While maintenance checks won’t secure the land, reputation matters.

If you’re approaching landowners of neighbouring projects and you have a poor reputation in the community, you may need to do some convincing to get them to sign up with you.

Landowners talk and build strong connections with each other, both on forums and in person.

And as bad news travels fast in these circles, it’s important to keep your profile squeaky clean.

As a project developer, you must manage and monitor the turbines with a site operator as much as you can.

If you’re strict about regular checks, your bottom line (and the landowner’s) is far less likely to be affected.

Final Thoughts on How to Secure Land for a Wind Farm as a Developer

Securing land for a wind farm as a project developer isn’t easy.

But one of the best ways to get what you want is by levelling with landowners and understanding their concerns.

In short, building a good and genuine relationship with the landowner is key.

Open communication and a local-first approach will also go a long way when approaching the landowner.

To make your project as successful as possible, it’s always worth sweetening the deal with bonus payments.

However, I believe the personal side of things is far more likely to clinch the deal than a large payment.

If you’re looking for advice on how to secure land for a wind farm investment as a developer, get in touch.

Our expert team will be more than happy to guide you, drawing on our many years of experience with landowners.

Download our FREE guide to setting up a profitable wind farm on your land.

Download Today