Should You Buy Land to Develop a Renewable Energy Project?

Should you buy land to develop a renewable energy project (like a solar or wind farm)? If so, it’s important to approach the decision with an informed mindset.

The idea of investing in green energy may be appealing, especially with the UK aiming to reach net-zero limits by 2050. But the process of purchasing land for renewables is generally far from simple. From dealing with technical hurdles to securing planning permission and connecting to the Grid, most renewable energy land purchases come with significant complexities and risks.

So, is buying land for a renewable energy project a smart investment? What do you really need to know before moving forward? Is it a good idea? In this guide, we’ll answer the most common questions people have when considering this route.

We’ll set realistic expectations, offer valuable insights and help you make an informed decision.

Whether you’re already familiar with large-scale land investment or just starting to explore the prospect, we’ll give you the honest perspective you’ll need to take the next step.

Is Buying Land to Build a Renewable Energy Project a Good Idea?

It can be, but it’s rarely straightforward.

If you’re planning to purchase land for the sole purpose of building a wind or solar farm, you’ll need to temper your expectations.

Generally, commercial-scale projects are complex and high-risk, as they need to pass several regulatory and financial hurdles. From Environmental Impact Assessments to gathering capital and dealing with supply chain issues, the process can easily drag on and hit roadblocks.

So, some of the best advice we can offer is don’t invest money you can’t afford to lose.

If you’re already investing in land for agriculture or want to widen your property portfolio with renewables, it’s a slightly different story. You might be in a better position to broaden your horizons as the financial risks may not be as high.

But if renewables are something you’re new to and they’re your first investment, it’s crucial to understand the risks upfront. And that’s exactly what we’re here to help you with.

Generally, renewable energy projects can set you back more cash than you’d expect. Planning permission, Grid connection, construction supplies and land suitability tests are all costs that should be on your radar.

You may also go through several parts of the process before technical, legal or Grid-related issues crop up. So, it’s important to have these potential problems in your field of vision well in advance.

What Makes a Site Suitable for Solar or Wind Development?

In our experience, this is where most people can get caught out.

It’s not just about having an open field with ample sunlight or a decent wind speed. Of course, we always recommend checking the solar irradiation or wind speed levels in your area before thinking about a project.

But to be viable, a site needs to hit the following criteria:

• Existing access to the National Grid or the potential to connect
• No major planning permission constraints on large-scale projects
• Flat or gently sloping land
• Supportive local communities (though this is becoming slightly less critical as of planning permission changes in July 2024)
• No major legal barriers like easements, access rights or covenants that would restrict commercial-scale developments

While a site might look like it ticks all the boxes, you may be surprised once you go through this checklist. It might have major legal, environmental, financial or Grid-related barriers that make it a non-starter.

We highly recommend comparing any potential land you’re looking at against our solar and wind land requirement factsheets. They’ll act as valuable guides that’ll help you whittle down a list of potential projects and help you avoid piling money into something that just won’t work.

How Likely Is It That You’ll Successfully Develop a Project?

We feel it’s important to put this in perspective if you’re in the early stages of purchasing land.

Research indicates that less than 1 per cent of the UK population (approximately 25,000 individuals) own about 70 per cent of England’s land. Very few of these landowners will go on to own a renewable energy project.

The breakdown of the UK’s land ownership looks something like this (as of 2025):

To give you some context, most successful developments will happen on existing landholdings. In these cases, the developer approaches the landowner.

These landowners aren’t generally looking to purchase land for development. They just own the land and are happy to make additional income from leasing it. So, while it’s not technically impossible to buy land for a project and get it off the ground, the odds are quite low.

In our experience, it’s more common for developers to approach existing landowners with land that meets the right criteria.

Is There Anything I Can Do to Improve My Chances With Purchasing Land?

In theory, yes.

If you’re serious about purchasing land, you can invest in the following things:

• Grid connection assessments
• Environmental and planning feasibility studies
• Land surveys and legal reviews
• Solar and wind resource analysis (which can take several months)

The earlier you do these checks, the better chance you’ll have at avoiding costly mistakes. They don’t necessarily guarantee that a site will be suitable for development. But they should give you the confidence you need to push forward without feeling as though you’re piling money into a dead-end project.

Most land agents and energy professionals say that speculating on land just for renewables is risky. Even experienced developers need to abandon potential sites that don’t pass initial checks. So, it’s very risky to go it alone without professional support and a decent investment track record.

Should You Move Forward or Walk Away?

In our honest opinion, we wouldn’t recommend purchasing land for a project if you’re just looking for a guaranteed return on investment. It’s risky, complicated and can take years to come to fruition in any way.

If you’re willing to accept the risk, invest time in due diligence and understand that it’s a long-term process, then it could be worth pressing on.

And if renewable energy is a larger part of your investment strategy, your risk dips significantly, as your eggs aren’t in one basket.

We certainly won’t say that buying land for renewables is a bad idea or destined to fail. That’s often not the case. But we believe that knowledge is power, and we’re not afraid to be frank before you take the plunge.

Need More Advice?

If you’re considering buying land for a solar or wind farm, we’re here to help. Our team of experienced professionals can help assess your site’s potential and provide realistic advice on a potential project. And it’s all backed by trusted tools and insights.

No sales pitch here. Just the facts that’ll help you make an informed decision on your next steps. Ready to dive in? We’re at the ready.