- Anna Skubiszyńska is a legal advisor and mediator, specializing in analysis and advice related to the lease of land for renewable energy.
- Based on her experience gained during cooperation with farmers, she indicated the 5 most important elements of the land lease agreement for renewable energy sources, which we should first pay attention to before signing it.
- The topic of the Power Field conference revolves around the most important issues related to the use of green energy in agriculture and food processing.
- During the conference, experts will comment on whether it is profitable to lease land for renewable energy installations, including: photovoltaic farms.
- We invite you to register for the Farmer – Power Field Conference, which will take place on June 20, 2024 at the Gniew Castle (Pomeranian Voivodeship) .
Do not ignore these 5 elements in the contract for the lease of agricultural land for wind and photovoltaic farms
The first element of the land lease agreement for renewable energy sources that we should pay attention to, according to Anna Skubiszyńska, is securing the mechanism for terminating the agreement if the investment does not take place.
Before concluding the contract, it should be verified whether if the obligation to pay the rent does not arise on the agreed date, the land owner will be entitled to terminate the contract without suffering negative consequences – emphasizes Anna Skubiszyńska, a legal advisor from the Anna Skubiszyńska Law Firm.
Other provisions in the contract that we should pay attention to include securing the payment of rent and other liabilities arising from the contract in the event of the tenant's arrears.
Various forms of security are available, ranging from a bank guarantee, through a guarantee deposit, to a declaration of submission to enforcement – notes Skubiszyńska.
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The third important element in the above-mentioned land lease agreement for photovoltaics or wind turbines is the indexation of rent.
Lease agreements for land for renewable energy are usually concluded for 29 years, which is a very long period, and rent rates set today may turn out to be unattractive in 10 or 20 years. It is necessary to ensure that the contract includes a properly constructed indexation clause that will protect the interest of the land owner – emphasizes the legal advisor.
Before signing a land lease agreement for renewable energy sources, let's also check whether it contains provisions governing the rules for removing the installation from the land after the end of such an agreement.
It is in the interest of the property owner to impose on the lessee the obligation to completely remove all elements of the installation erected on the land after the expiry of the contract. It is important to specify a deadline for fulfilling this obligation and to establish payment rules for the period during which the demolition works will take place – notes Skubiszyńska.
Before we sign a lease agreement, let's make sure how it solves the obligation on the lessee to provide funds in advance for taxes and fees related to the investment.
The real estate tax is paid by the land owner, not the lessee, so it is important from the lessor's perspective that the lessee provides him with the funds to cover the tax in advance. It is also worth remembering that real estate tax is not the only fee that may be charged to real estate. In the perspective of several or several dozen years of validity of the lease agreement, the legislator may introduce additional fees or taxes that the lessor will be obliged to cover – he sums up.
Leasing agricultural land for renewable energy in rural areas will be one of the topics we will discuss during the Field of Power conference.
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Farmer's conference on June 20. We will talk about green energy in the agri-food industry
Register for the Power Field conference today
On June 20, the Farmer's conference dedicated to photovoltaic installations, biogas plants, energy storage and wind farms will be held at the Castle in Gniew. The agenda will include the most urgent topics and practical tips. . We invite you!
