Advertisement
Help Keep Boards Alive. Support us by going ad free today. See here: https://subscriptions.boards.ie/.
https://www.boards.ie/group/1878-subscribers-forum

Private Group for paid up members of Boards.ie. Join the club.
Hi all, please see this major site announcement: https://www.boards.ie/discussion/2058427594/boards-ie-2026

Solar panels get €1,000/acre so what’s the catch?

123457

Comments

  • Registered Users, Registered Users 2 Posts: 11,668 ✭✭✭✭wrangler


    There's land in continuous tillage for many years and sprayed with roundup every year and can still grow good crops of grain and better straw. what's not to like



  • Registered Users, Registered Users 2 Posts: 4,453 ✭✭✭Kevhog1988


    Can't see how they would.



  • Registered Users, Registered Users 2 Posts: 11,668 ✭✭✭✭wrangler




  • Registered Users, Registered Users 2 Posts: 4,453 ✭✭✭Kevhog1988


    was meant to be to Whelan about the sheep getting stuck. Not sure why the quote didnt work.



  • Registered Users, Registered Users 2 Posts: 10,049 ✭✭✭✭Birdnuts


    In tillage the soil gets cover for most of the year and has crop residues, manures etc. incorporated - leaving soil bare all year round with constant spraying leads to erosion and degradation of the soil biota over time and is simply bad practice. Another issue is the emergence of Roundup resistant weeds like Horsetail like what happens on roadsides that get constantly sprayed



  • Advertisement
  • Registered Users, Registered Users 2 Posts: 1,324 ✭✭✭atlantic mist


    can they not claim business relief? set at 90% just like agricultural relief



  • Registered Users, Registered Users 2 Posts: 5,331 ✭✭✭alps


    Farmer can put 49% of holding in panels and retain agriculture relief on the entire.

    Most land is privately owned and leased into the company. If the company buys land, you can be sure that the company shareholders will not make a stupid move regarding transfer of those company lands to family. It will all end up well planned from a tax point of view.



  • Registered Users, Registered Users 2 Posts: 5,331 ✭✭✭alps


    Do you know where this solar farm is near the Blackwater by any chance?



  • Registered Users, Registered Users 2 Posts: 2 Balfour009


    Hi,
    I am writing to seek your guidance regarding a recent proposal from a solar farm developer who has approached my family with the intention of leasing our farmland for the establishment of a solar farm. We would greatly appreciate any advice you could provide concerning the contractual/leasing and commercial aspects of this arrangement. Probably looking for a reliable land agent contact details.

    Thank you in advance for your assistance.

    Best regards,

    P.S. not sure if you can contact me privately on here.



  • Registered Users, Registered Users 2 Posts: 5,331 ✭✭✭alps


    Number of long term considerations.

    Rent is "unearned income". It effectively means you will pay 50% tax on the rent.

    While currently you can retain agricultural relief if renting only 49% of holding, you really have to consider the risk of this not being available for the duration of the lease.

    Leases are for 25 to 35 years. It is almost certain that the land will pass to the next generation at some point during the lease.

    Valuation of the lease on inheritance will be taken as the discounted value of what the lease has left to run.

    For instance if the lease is worth 50k/annum and there is 20 years left in the lease, it would be likely that the lease would be worth a future value of at least 2 million.

    Tax on the value of the land plus the 2m would be due on inheritance, and maybe no agricultural relief on yhe land.

    The alternative wpuld be to lease to a farmer, take a tax free rent plus basic payment, index linked for at least 15 years, maintaing agricultural relief, with a possibility of transferring and next generation running a long term lease..possibly tax free.

    Get really good tax advise. I know many accountancy firms are advising against this commitment.



  • Advertisement
  • Registered Users, Registered Users 2 Posts: 2 Balfour009


    Thank you alps for your message, we have sought independent financial advise.

    I am more interested in the signing up arrangement and what the developer should be offering for the Option Agreement?

    Thanks again



  • Registered Users, Registered Users 2 Posts: 5,331 ✭✭✭alps


    It would be interesting if you could come back with some of your findings Balfour, when complete. The very best of luck with your project.



  • Registered Users, Registered Users 2, Paid Member Posts: 13,371 ✭✭✭✭the_amazing_raisin


    "The internet never fails to misremember" - Sebastian Ruiz, aka Frost



  • Posts: 353 ✭✭ [Deleted User]


    Never considered weather damage before. I wonder what does the contract say, are they insured?, panels are cheap to replace but if the damage is more extensive there could surely be a risk that the company behind the farm go bankrupt leaving the farmer with a right mess to rectify.

    https://www.msn.com/en-ie/news/uknews/storm-darragh-leaves-uk-s-biggest-solar-farm-in-pieces/ss-AA1vAqpK?ocid=entnewsntp&pc=U531&cvid=7c64ca6332bd4894a0388501ba55e9bc&ei=29#image=1



  • Registered Users, Registered Users 2, Paid Member Posts: 1,200 ✭✭✭cap.in.hand.


    Fair damage done alright…saw the damage on BBC news ...also rotor blade blown off wind turbine



  • Registered Users, Registered Users 2 Posts: 9,013 ✭✭✭Markcheese


    I suppose It depends on the contracts , and how saleable the lease or interests in the solar farms assets are ,

    If the solar company stops paying the farmer,they've broken the lease , who owns the frames - electronics ,- substations but most importantly the grid connection ,

    It's likely another company would swoop in and buy the distressed company,or even their assets ,- if the lease with the farmer allows this

    If the whole lot reverts to the farmer (including the grid connection) then possibly he has a very very valuable asset on his hands

    Think of a very expensive car with engine trouble - the car is useless - and probably very low value - but change the engine and it's back in the game -

    Problem comes when instead of being a 2024 Merc with engine trouble ,it's a 2001 Merc nearing the end of it's life, and you're wondering wether it's worth spending the money on getting it back on the road

    Slava ukraini 🇺🇦



  • Registered Users, Registered Users 2 Posts: 9,013 ✭✭✭Markcheese


    I assume most of the companies have some level of insurance , but you'd want to be sure that contractually they have to spend any insurance money on repairing the solar farms , and or there a sinking fund to ensure that the farm is put back to agreed conditions after the lease is up . It'd be very easy for a large company to promise the world but the individual solar farm is owned by a separate limited company, with no real assets except the panels ect , if they're obsolete the company could go bust leaving a mess for the land owner,

    Slava ukraini 🇺🇦



  • Registered Users, Registered Users 2 Posts: 9,013 ✭✭✭Markcheese


    Typically how long are the leases ?

    Its usually a 10 year planning that's being applied for , so I assume that a lease doesn't really begin till construction has started ,sometimes within the 10 year planning permission?

    Slava ukraini 🇺🇦



  • Registered Users, Registered Users 2 Posts: 1,059 ✭✭✭techman1


    WIth the greens gone from government I wonder will the new government tighten up this whole area and stop planning permissions for solar farms on prime farm land in the east of the country. There has to be many opposition groups cropping up all over the country to stop their houses ,villages and towns being surrounded by these things.

    Also land owners maybe short sighted in thinking that solar farms are going to be as profitable in the future as they are now, most of the revenue is due to the very favourable feed in tariffs, minimum pricing etc that the renewable sector is getting rather than the inherent strength of renewable energy in its own right. If governments under pressure from their electorates for sky high electricity and energy prices were to row back on those pricing models where does that leave the profitability of solar energy companies 20 or 30 years into the future. Will the farmer be left holding the pensioner



  • Registered Users, Registered Users 2 Posts: 7,875 ✭✭✭circadian


    I would like to see solar becoming a sizeable part of our energy grid but this just highlights how broken planning is in Ireland.

    Can't build upwards in Dublin due to objections from the Georgian Society and others. Dire need of development around the country gets held up with NIMBY and somehow a solar farm, which is now by all means an industrial site, gets approved to surround someones house. He should be renumerated and the property absorbed into the farm, crazy it got that far.



  • Advertisement
  • Registered Users, Registered Users 2 Posts: 9,013 ✭✭✭Markcheese


    I doubt solar policy will change with the greens gone , unless some politician in gov actively goes after solar , remember it's businesses putting up the solar farms not gov , and it's eirgrid and ESB networks giving out the grid connections,

    I do feel sympathy for the guy who has found his home In the middle of the solar farm , I dunno how you'd square that circle , maybe hedge and tree planting on the edge of the solar farm , but I don't think everyone should have a right not to have to see a solar farm .

    It's a dangerous route to go down to tell farmers and land owners what they can and can't do based on the aesthetic appreciation of their neighbours , I'm vegan - I don't like to see cows or sheep on the land ,

    You can't plant maize there because I don't like seeing the plastic 2 months of the year , or I don't want to see a power line going across your land to bring electricity to your milking parlour and yard

    , or even new cattle sheds ect being ruled in or out depending on the neighbours view ,

    You have a right to enjoy your property , you don't have a right to a view, and there's probably a line to be found somewhere between those two things .

    Slava ukraini 🇺🇦



  • Registered Users, Registered Users 2 Posts: 5,331 ✭✭✭alps


    I can't make out the disgust at having your house "surrounded" by solar panels?

    They don't make noise, they don't smell, they don't light up in the middle of the night. You'll never have some gobshite living next door, shouting or roaring or playing loud music all night. You'll never have slurry spread up to the back door, or foul smelling washing on your clothes line. It wont block the sunlight, and if you plant a hedge, you won't even see it.



  • Registered Users, Registered Users 2 Posts: 7,875 ✭✭✭circadian


    He can hear the hum of the eqipment, there's security lights that are on at night, it's not non-impactful. I don't really care for people complaining about some solar farm off in the distance being an eyesore or whatever, but when you have what is effectively a power plant and all that comes with it surrounding your home it's a little different.



  • Registered Users, Registered Users 2 Posts: 6,995 ✭✭✭JJayoo


    Will there ever be a scheme for smaller scale solar plants? Like an 1-10 acre size?



  • Registered Users, Registered Users 2 Posts: 78,877 ✭✭✭✭Victor


    The issue is the overhead cost of the power connection to the grid, substation etc. A larger plant will normally be more efficient.



  • Registered Users, Registered Users 2 Posts: 835 ✭✭✭Cushtie


    There is one, SRESS I think it is. It gives a guaranteed price for the energy produced. However as Victor above has said, the bogey would be the cost to connect into the grid. I did some sums recently based on the best Information I could get and it was very tight. So many variables, planning, funding, grid connection availability and cost. I was looking at 2MW, roughly 10 acres needed for that.

    I enquired if there was capacity in the local substation, but was told would need to submit an full application first so they could assess capacity and cost.



  • Registered Users, Registered Users 2 Posts: 78,877 ✭✭✭✭Victor


    There is published information available on capacity at all substations at 38 kV and 110 kV (there are exceptionally few connections to 220 kV).



  • Registered Users, Registered Users 2 Posts: 835 ✭✭✭Cushtie


    Cheers, yeah I saw that when researching, there is a downloadable excel file and a map based application on the ESB networks website. I gave them a screenshot of my local substation, which appears to have capacity, but that was the reply I got back. I have left it at that for now, but will look into it again in the new year.

    It's probably beyond my capability to progress it, but interesting all the same.



  • Registered Users, Registered Users 2 Posts: 1,531 ✭✭✭have2flushtwice


    https://www.boards.ie/discussion/comment/121792531#Comment_121792531

    If a company director puts money into a pension it's zero tax as far as I'm aware?

    Is It not better to put as much as possible of the solar earnings into a pension, reducing earnings, and pay yourself bare minimum, and get an off farm job as well to keep the day to day moving?

    Sure ya would have a bit of time on your hands!



  • Advertisement
  • Registered Users, Registered Users 2 Posts: 11,668 ✭✭✭✭wrangler


    I don't see pension investment as being tax efficient, apart from the lump sum it's well taxed when it's being paid out……. or am I missing something



Advertisement