Considering a wind turbine on your land?

While wind turbines are often associated with more marginal or boggy ground, this is not always the case, and it is becoming more common for developers to target land that is actively farmed or includes forestry, writes rural solicitor Jane Bourke.

Image credit: Irish Examiner

Dear Jane,

I have recently been approached by a developer who is interested in placing one, and possibly two, wind turbines on my land. They have mentioned entering into a long-term lease or option agreement, together with the possibility of annual rental payments, which of course sounds attractive.

However, my land is currently being farmed and also includes an area of forestry, and I am concerned about how this type of arrangement might affect my existing use of the property.

I am also unsure whether I would be required to remove any land from agricultural or forestry use and whether this could impact any grants or schemes I currently have in place with the Department of Agriculture.

In addition, I understand that these agreements can run for a very long period of time, and I am concerned about how this might affect my ability to deal with the land in the future, including passing it on to the next generation. I would also like to understand what happens at the end of the project and whether there are protections in place to ensure the land is restored.

What should I be considering before entering into any agreement, and are there particular issues or safeguards that I should be aware of?

Dear Reader,

We are increasingly seeing landowners being approached by developers in relation to renewable energy projects, including the installation of wind turbines. While such proposals can present an attractive additional income stream, they also involve significant long-term legal, practical and financial considerations which should not be underestimated.

One of the first matters to consider is the existing use of your land. While wind turbines are often associated with more marginal or boggy ground, this is not always the case, and it is becoming more common for developers to target land that is actively farmed or includes forestry.

In these circumstances, the footprint of the turbine, together with access roads, underground cabling and related infrastructure, will typically result in that portion of the land being removed from agricultural use for the duration of the agreement. This can have a broader impact on how the remainder of the landholding is managed and utilised.

Where the land includes forestry, additional and often more complex considerations arise. The installation of turbines and associated infrastructure may interfere with harvesting cycles, replanting obligations or long-term forestry plans.

It may also have implications for grants, premiums or schemes administered by the Department of Agriculture. In some cases, entering into such an arrangement could affect eligibility for existing supports or give rise to clawback or repayment obligations. It is therefore essential that these issues are examined carefully before any agreement is entered into.

Image credit: Irish Examiner

The duration of these agreements is another key factor. Wind turbine leases or licences are typically long-term in nature, frequently running for 40 years or more, and often include options to extend or renew in favour of the developer. This represents a significant commitment and may restrict your ability to use, develop or otherwise deal with the land during that period. It is important to consider how such an arrangement aligns with your long-term plans for the property, including succession planning and the potential needs of future generations.

Consideration should also be given to how the development may affect the value and marketability of the property. The existence of a long-term wind turbine agreement may impact on future sales, lending or refinancing arrangements, and this is something that should be borne in mind at an early stage.

Another critical issue is what happens at the end of the project. The agreement should contain clear and enforceable provisions requiring the developer to decommission the turbine, remove all associated infrastructure and fully reinstate the land. In our experience, it is essential that these obligations are supported by a decommissioning bond or similar financial security, to ensure that funds are available to carry out the works if the developer fails to do so.

In addition, there are tax implications to consider in respect of any income generated under such agreements. The treatment of these payments will depend on the structure of the arrangement and your individual circumstances, and early advice from an accountant or tax adviser is recommended to ensure that you are fully informed before proceeding.

While entering into a wind turbine agreement can provide a valuable source of income, it is not without risk. Each proposal should be carefully reviewed on its own merits, taking into account the specific characteristics of the land and the long-term implications for its use and ownership.

We would strongly recommend that you obtain independent legal and tax advice before signing any documentation. A solicitor can review the proposed terms, advise on your rights and obligations, and ensure that appropriate protections are in place to safeguard your position both now and into the future.

Jane Bourke is a solicitor practising in Walsh & Partners, Solicitors, 17, South Mall, Cork (021-4270200). Walsh & Partners also specialises in personal injury claims, conveyancing, probate and family law.

Email: info@walshandpartners.ie

Web: www.walshandpartners.ie

While every care is taken to ensure the accuracy of information contained in this article, solicitor Jane Bourke does not accept responsibility for errors or omissions howsoever arising, and you should seek legal advice in relation to your particular circumstances at the earliest possible time.

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