Renewable Energy Accountants for Institutional Landowners: Worth It?
 Topic: institutional landowners |  Read Time: 6 mins |
 Landowner type:Independent landowners | Institutional landowners |  Energy: Onshore wind |
5th May 2025I’m a big supporter of renewable energy accountants for landowners getting more involved in new and existing wind projects.
As an accountant, I have seen first-hand the benefits that accountancy training can have within the renewables industry.
Until recently, I was a member of the ICAEW’s Sustainability Committee, where there was a strong push for finance professionals to get more involved in the green economy and sustainability.
For context, my work within the green economy has primarily focused on large-scale renewable energy projects.
I first got involved in this space while working on the finance team for the UK’s largest renewable energy developer. Eventually, I transitioned to starting my own business, where I work with renewable energy developers and landowners hosting projects on their land.
In my experience, the landowner side of these projects is typically managed by in-house land agents, energy teams and asset managers. These include councils, waste management companies and other types of businesses.
The Importance of Finance Teams
There are many areas where finance professionals (in particular in-house accountants) can add a lot of value to renewable energy projects but are often overlooked.
This is because finance teams don’t instinctively come to mind when we think of renewables!
I’ve recently worked with two great accountants at companies with renewable energy projects on their land – namely John Seaward of Tudor Griffiths and Ben Arden of Dewlay Cheesemakers.
Both did a fantastic job of keeping an eye on their third-party-run renewables projects. They accomplished this by applying what they had learned about renewables on the job, without any specialist training.
Here are a few ways that I believe finance teams can add further value to the renewable projects that they manage.
4 Ways Finance Teams Can Add Major Value
In my experience, finance teams are the most underutilised asset in the management of renewable energy projects.
So, here is a list of a few key areas where accountants for renewable energy can add value to the projects of institutional landowners:
1. Reviewing contracts for financial compliance
Looking at historical rents
For projects that already exist and are approaching the contract re-negotiation stage, renewable energy accountants should be involved in reviewing your organisation’s historical rents.
This will make certain that all payments are fully up to date in preparation for the contract renewal.
This needs to be a comprehensive review that reconciles back to source contracts rather than simply checking that payments appear reasonable and have been consistently made.
Checking the contract and matching it to what has been paid
When rent or royalties are paid from renewable energy projects, they are usually:
- A standalone figure
- Not given much context
- Not sufficiently scrutinised for completeness
However, if you look deeper into those payments, you’ll find many intricate layers of information that contribute to the final amount received.
Usually, there’s a lot more information and judgement involved in calculating those rent or royalty payments than originally meets the eye.
As these figures are linked to the source contractual agreements, even the wording of those contracts can have small subtleties that materially alter the magnitude and timing of payments due.
Therefore, it is crucial to fully understand how the site developer determined those figures.
How do we do this?
Renewable energy revenues are typically made up of numerous income streams that can vary widely – from half-hour to half-hour, month to month, season to season and/or year to year.
There are also enormous differences between Power Purchase Agreements (PPAs), which are used to sell the energy produced by renewables projects from which the rent or royalty payments are derived.
These agreements exist between the site developer and the energy buyer (commonly known as the energy ‘off-taker’) and are often the industry’s most closely guarded secret due to their commercial sensitivity.
These agreements vary widely, and the terms and prices at which the energy is sold can alter this significantly.
This leads to variations in the timing and magnitude of payments.
As renewable energy accountants, we must regularly check rent and royalty payments against these power purchase contracts.
If this isn’t done, there can be legal implications that may reduce the long-term value of the renewables project and the amount of rent or royalties paid to landowners over time.
To make things more complicated, any shortfall in payments may not be recoverable.
2. Assessing the finances of prospective site developers
Selecting a site developer is a crucial step in any renewables project and can’t be rushed or overlooked.
For this reason, I encourage institutional landowners to review the market and carefully assess the various options from a range of developers before committing to one.
If your organisation decides to take this route, the finance team should carry out a financial viability review. This review should include both the proposed project and the developer’s past projects.
They should also assess the new tenant’s financial stability. They’ll obtain references to verify that the site developer has a sound track record, without significant previous disputes.
Furthermore, every effort should be made to confirm who will be buying the energy produced by the project. You’ll also want to check whether this will be priced at an arm’s length market value.
It isn’t uncommon for some developers to sell energy to a related company at less than the full market price. This action could reduce the rents or royalties due to your organisation (which is obviously less than ideal).
The goal is to ensure that your organisation enters into a lease with a reputable developer of excellent standing. This will be one who will fulfill their legal, commercial and financial obligations. But they’ll also operate the project as well as (or better than) other developers in the market.
3. Reducing admin and improving insights
If you’re running a business, the last thing you want to think about is admin.
And that’s where renewable energy accountants for landowners can really lend a helping hand.
They can take a detailed look at reports, payments and current financial decisions. But they can also assess static data and identify interesting trends.
Perhaps you’re overlooking ways to streamline your current project approach. Or maybe you’re dedicating too much of your internal workforce to tracking trends.
Regardless of where your pain points are, leveraging finance teams for renewable energy projects can seriously take the edge off.
4. Saving you money
Whatever the size of your business, saving money without cutting corners is always a win.
Trying to handle finances while running a business can be overwhelming. As a result, it’s easy to miss key details in the process.
This is where renewable energy accountants for landowners can make a real difference.
They can help you:
- Maximise capital allowance claims
- Take advantage of research and development reliefs
- Advise on potential investments
If you’re not quite sure how viable it’ll be to bring your project in-house, accounting advice is always worth seeking.
By taking advantage of all possible tax reliefs and incentives, you can significantly increase returns.
Should We Bring Our Project In-House?
Finance teams can conduct a cost-benefit analysis to determine the most commercially viable option for bringing a project in-house.
If this is the avenue you would like to go down, your finance team should do the following:
- Obtain clear costings (ideally from three separate developers)
- Develop a realistic budget and ascertain if there are sufficient funds to carry out and maintain the renewables project
This is especially important if your organisation wishes to move an existing renewables project away from a developer with a protected business tenancy (i.e. security of tenure).
Final Thoughts
It’s clear that renewable energy accountants for landowners can have an enormous impact on the ultimate success of your negotiation process.
Although they’re often underused, getting ahead of the game and hiring a qualified team of experts can save you both time and money.
And you know what that means – you’ll be able to focus your energy and expertise on the areas of your business that matter most.
If you need any assistance with your current auditing process or simply need a helping hand with bringing a project in-house, don’t hesitate to get in touch. Our expert team will be happy to lighten your load and provide the advice your business needs to thrive.
