Managing a Solar Farm: What Landowners Should Know
 Topic: managing solar farms |  Read Time: 11 mins |
 Landowner type:Independent landowners | Institutional landowners |  Energy: Solar |
14th May 2025Are you a landowner looking for guidance on managing a solar farm? Although you’ll have little involvement with the day-to-day operations, this comprehensive guide will lead you through everything you need to know so you’re not left in the dark.
If you want to get a new solar project on your land, you might wonder how it’ll be managed during its lifetime.
And as most solar leases run for over 30 years, you’ll undoubtedly want to be in the know.
My guide to managing a solar farm will run through everything from initial contracts to the full-blown management phase.
I’ll run through what your site operator will do to manage the project as well as things that you can (and should) be doing to manage things on your end.
Whether you’re just starting out on your renewable energy journey or want more information now that you’re up and running, this guide can help.
To navigate to the parts of this article that are most relevant to you, I recommend using the contents section below as a guideline.
The first section is dedicated to landowners without a project running on their land. This will cover everything you need to know about managing a solar project before it is operational.
The second section should be read by landowners with a fully functional project on their land. So, if you’ve signed a lease and your project is up and running, you should start here.
The final section gives general management tips to all landowners.
1. Landowners Who Haven’t Yet Signed a Lease
In this section, I’ll run through:
- The importance of a lease agreement (and what you’ll need to include)
- The ins and outs of payment arrangements for a solar project
- Dispute resolution tips
This should give you a good starting point to make managing your solar project that much easier when it’s up and running.
To start with, you will usually sign an option agreement, and it could be five-to-ten years before a project is on its feet. During this time, your developer will conduct feasibility studies, apply for planning permission and look into Grid connection.
Before this option agreement ends, your developer will likely approach you with the final lease if everything goes ahead as planned.
It is crucial to note that very little will change between your option agreement and final lease agreement.
So, before signing any option agreement, you’ll want to carefully review everything and make decisions based on what works best for you.
And these are the areas you’ll want to check in your option and lease agreements:
Solar project decommissioning
Most solar projects have a life cycle of up to 30 years, so it’s important to include clauses in your contract that discuss decommissioning plans.
This is because returning the land to its original, pre-project state is technically the responsibility of the landowner – not the developer. Although most developers will take on this task and restore your land, it’s technically not required unless explicitly stated in your lease agreement.
Even if your developer does agree to decommission the site, I always recommend that you get in writing from your developer that they set aside the funds to handle decommissioning costs at the project’s end. Realistically, no one wants to be left in the lurch with an enormous decommissioning task they haven’t budgeted for.
Payment arrangements
These are the typical payment options that are available for solar projects:
Fixed rent
Fixed rent is the most straightforward payment arrangement you’ll find, and it’s perfect for landowners who want a more hands-off experience. You’re not exposed to any volatility with the project or energy markets, and you’ll get a fixed fee regardless of how the project performs.
Just be aware that the amount paid is usually less than you’d get with other rental types. So you’re essentially taking a loss for stability.
Turnover rent
Turnover rent sees landlords receive rent based on the percentage of their site operator’s income. It’s usually higher than other rental types and lets landowners feel more invested in the project’s success.
However, you’ll need to be seriously diligent about monitoring the accuracy of all payments (and this information can be tricky to come by).
Hybrid rent
Hybrid rent combines fixed and turnover rent, offering a guaranteed rent, plus a bonus payment. It gives you complete visibility over how the project is performing but requires due diligence to regularly monitor your payments’ accuracy.
Multiple of outputs or generation rent
Landowners will receive rent based on the amount of electricity a site produces. This is then multiplied by a fixed value. I generally recommend this payment arrangement if your solar farm is set to have an impressive output.
The main downside here is that this arrangement directly exposes landowners to the operational risks of the project.
Make sure you have a way to work out any issues
There’s nothing worse than a dispute. But it can become even more difficult if you haven’t outlined respective rights and responsibilities before signing a contract.
Disputes are usually costly, and I’ve seen some run into the hundreds of thousands (up to £300,000 in one extreme case). So, if possible, you’ll want to avoid any disputes reaching this level.
But how do you do that? It’s all about documenting responsibilities right at the project’s outset.
Not only will you want to work dispute resolution plans into your lease agreement, but you should also keep copies of all your documents. From lease agreements to letters, emails and updates, keeping all correspondence to hand will help significantly in a dispute situation.
The cost of dealing with a dispute will depend on what is written into your lease. Even being able to recover legal fees must be detailed in the lease.
You’ll also want to ensure you’re signing over only the necessary rights to your land.
Need help negotiating a contract for your solar project?
Read our guide on creating a watertight lease, which should help you get the best possible deal for leasing your land – both income-wise and keeping your land in the best condition during the project’s lifetime.
Consult the experts before diving in
It’s incredibly valuable to consult a group of experts before signing a long-term lease. This should always happen before the project is constructed.
Consulting a group of experts allows you to get your ducks in a row before bookmarking your land for up to 30 years – which is an enormous commitment for any landowner.
The main experts I recommend meeting with are:
- A solicitor
- A land agent
- An accountant
Solicitors will generally help review and draft a lease, make sure your contract abides by current regulations and help with the negotiation process. They can also help you avoid classic pitfalls like not opting out of the Landlord and Tenant Act 1954 (opting out gives you far more control over your land).
Land agents can help you apply for necessary permissions and create timescales for decommissioning.
When a project is up and running, accountants can help review the project’s land rents by undertaking a full payment audit. They can then check how much energy a project is set to generate each month and ensure you’re receiving the correct payments.
Each expert is invaluable in their own way and is certainly worth the investment.
A final word for new landowners
In my book, setting yourself up with a watertight lease agreement should be your top priority. With clear terms, payment arrangements picked and decommissioning plans laid out, you’ll be in a strong position. Plus, a clear contract with well-defined terms will make managing your project so much easier.
If you’re not quite sure where to start with your project, a SiteStart scan can help set you up for success. We’ll trawl through a large selection of comparable sites and make sure you’re getting fair, market rates for your new project. With facts and figures in hand, you’ll be in a stellar position to negotiate – right from the beginning.
2. Landowners With a Project Currently on Their Land
In this part, I’ll cover the ongoing maintenance tasks that will take place during the lifetime of an average solar project. I’ll also outline how site operators manage solar farms.
Entering the maintenance phase
If you’re a landowner with a project that’s up and running, the construction contract will have moved into a maintenance or operational contract.
This is typically when the site operator (this may be the same company that developed the project) steps in to maintain the site.
There will be maintenance checks throughout the lifetime of a project. But with solar, the maintenance is minimal, with cleaning and technical checks being few and far between.
Plus, any maintenance will have little to no bearing on your day-to-day activities, meaning you won’t need to switch up your current lifestyle much at all.
In many cases, landowners will offer to help site operators with maintenance. In these cases, site operators often set up paid arrangements to compensate the landowner for their time. Not only can this boost the site operator/landowner relationship, but it’s even more extra income in the landowner’s pocket.
Typical maintenance tasks
Here’s a list of the ongoing maintenance tasks that might take place during a project’s life:
- Mowing in and around the solar array to prevent any overgrowth that might impact the panels
- Hedge-cutting and keeping all surrounding trees trimmed. This avoids unwanted shading over the panels that might decrease output over time.
- Spraying and weed control to avoid pesky weeds competing against the solar panels for adequate light
- Cleaning is bound to happen periodically, as the panels can become caked in dirt or covered with bird droppings, snow or ice. Cold water and gentle detergents are usually used to remove grime, and the site operator may also check indicators and LED lights for any failures.
- Periodic defect checking, which involves a visual inspection of every solar module. The management team will check for chips, dents, cracks, fogged glazing and extreme delamination that may affect the overall output of the panels. If something untoward is found, the operator will arrange to fix or replace these panels.
- Periodic checking of the structural stability of the mounting frames. The bolts should be rust-free. Junction boxes will also be checked for any rodent or weather damage.
- Checking wiring and electrics for insect damage or corrosion several times during the lifetime of a project.
How do site operators manage solar farms?
CCTV and a security team
Solar farms are often monitored with CCTV and perimeter protection – security professionals who protect the site from unnecessary damage from trespassers.
The CCTV usually includes infrared and thermal imaging cameras, which can differentiate between wildlife disturbances and criminal intent. This high-spec camera usually puts landowners at ease, as they know their land isn’t at risk.
Solar monitoring system
As well as using CCTV, most developers will install a solar monitoring system that tracks the panels’ efficiency. If there’s a significant dip in recorded efficiency, the site operator can arrange to have the panels assessed and fixed.
The solar monitor usually includes hardware attached to a solar array, an internet connection and software to track changes. The monitor reads the data that flows through a solar array’s inverters. This will show when a system is at peak performance, and it’s great for picking up defects and errors during a project’s lifetime.
3. Advice to All Landowners
In this section, we’ll run through:
- The importance of the landowner and site operator relationship
- What landowners can do to keep their projects running smoothly
The importance of a good relationship
A good relationship between a site operator and a landowner is vital for any successful project. Not only does it help to resolve disputes quickly, but it’s likely to make the overall process more pleasant for both parties.
How to keep it friendly
As a landowner, you can boost your relationship by:
- Being helpful and considerate of your site operator’s needs and daily requirements
- Informing your site operator quickly if something isn’t working as it should (more on this below)
- Getting on the same page at the start of the project and airing any concerns about the project and how it will run
- Asking for a rundown of their responsibilities early in the project to ensure both teams are handling everything correctly
- Discussing dispute resolution terms early in the process (and not losing your cool when talking about any issues)
Real-life example of the power of a positive working relationship
David is a landowner hosting a 4 megawatt (MW) wind farm on his land. Here, he explains how he keeps a positive relationship with his site operator.
How Can I Contribute Towards Managing a Solar Farm as a Landowner?
Auditing
One of the best things you can do on a project is manage your payments and carry out regular audits. This catches any missed payments and ensures that you receive accurate payments for leasing your land.
To properly audit your site, it’s worth checking payments as and when they arrive and asking your accountant to assist. There is a statute of limitations for recovering missed or incorrect payments, so it’s in your best interest to track income accurately and catch any issues. This way, you’ll be more likely to get the income you’re owed without a dispute.
If you want to take the guesswork out of things, we highly recommend our Lumify SiteView360™ solution. You’ll receive a complete historical review of your payments to ensure everything is accurate and up to date. If we find something that doesn’t quite check out, we’ll help you get back on track in no time.
Keeping track of ownership
It would help if you also kept an eye on who’s in charge of the project. The project will likely change hands a couple of times during its lifetime. This is because companies buy and sell assets quite often depending on how their investment strategies change over time.
And because leases are incredibly long, site operators often retire or move on during a project’s tenure.
So it’s a great idea to check in with your site operator regularly and ask for a heads-up when the project is set to change hands. This gives you plenty of time to get to know a new site operator before they’re managing the project full-time.
It’s also worth raising any issues you spot with the panels or mounts on your land. After all, you’ll see them daily and are more likely to notice anything that’s amiss. Raising minor issues before they become serious problems will put you in good stead with the site operator. Over time, this will keep the project operating at maximum efficiency.
In short, the best thing you can do when managing a solar farm as a landowner is to be proactive.
Final Thoughts
Managing a solar farm is generally out of a landowner’s hands. But it’s always worth knowing what’s happening with your land (and how you can help things run more smoothly).
Whether that’s picking up on broken panels, assisting a site operator or tracking your payments, getting involved with the process is bound to make you feel more confident.
Also, the more you know about your solar farm, the more you can negotiate a better deal if your developer extends the project.
If you’re interested in getting a solar farm on your land (or want to ensure you’re getting the correct payments), get in touch. The team at Lumify Energy will guide you through the process and ensure you’re getting the impressive rental payments you deserve.
FAQs on Managing a Solar Farm
How much does maintaining a solar farm cost?
Solar farms cost around £12 per kilowatt (KW) of installed capacity to maintain. However, maintenance costs will increase as the project size increases.
Who pays to build a solar farm?
This depends entirely on who’s interested in building the project.
Some landowners can self-develop a project and front the costs themselves (or through external investments).
For other projects, developers will take the reins and use bank financing, angel investing, their own funds or a mixture of all the above.
How long does a solar farm last before a developer decommissions it?
The average solar farm lasts between 30 and 40 years before a developer needs to decommission it. This will vary based on how well a site operator maintains it and how the solar panels are holding up. Past this point, the developer will either need decommission or repower it.
