SolarLeases Flashcards
What is included or HOTS of solar leases
STC and confidential
Landowner
Tenant
Landowner’s solicitor
Landonwer’sAgent
Tenant/Tenant’s solicitor
Option Area
Landlord Retained Land
Generation Size
Initial Option Period
Initial Option Fee
Option Period Extension
Longstop date
Land Registry reference (no disposition restriction without deed of covenan is standard to protect them)
Landowner Chargee Consent
Direct Agreement/funder step in rights
Tenant right prior to lease completion
Landowner restrictions
Landowner Obligations
Lease completion conditionality
Planning application
DNO documents
Option/lease assignment
Crop Loss (compensation for crop loss)
Vacant possession (able to seek vacant possessin on option area upon completion
Vacant possessio
Scheudle of condition
Whatis included in the DNO (distrubution notification officer) Documents
When required by the tenant, the landowner will grant wayleaves and enter into deeds of easements and/or subestation lesaes necessaery for the development and operation of the site provided that the cable route will be sbject ot landowners approval. DNO documetns to be reveiwed by landowner’s agent and Landowner’s solicitoe by the tenants cost
How do planning agreemets work in solar parks
Landowner will enter into the requirements of the planning appliation in the option area
The tenant shall indemntify the landowner against all liabilities arising under such agreement and payany costs incurred by the planning permission and its conditions
This does not affect the landowners retained land
Likely that s.106 agreemtn be put in place
How do option/lease agreements work
Tenant able to assign to group company or funder without landowner consent
Assign to third parties to landowner consent without it being unreasonably withheld. Acting for landowner preserve the right for landownder vetting of assignees
THe optopm or lease to any thid party the tenant shall procure that the assignee covants directly with the landoener to comply wiht the terms of the option and.or lease from the date of assignmement premium sometime one-off fees circa £10,00 cna be agreed
What are the tenants responsbility for crop loss
Tenant will make reasonabl endeavours to exercise the lease at a time to mnimise the loss of crop on any land
The tenat will compensatie the landowner for any crop loss in surveys and works
What are the rights inthe planning applcication agreement
The tenant is to submit an draft application to the landowner
(whether landlord has first approval)
Tenant is to use reasonable endeavours at its own costsduring the option agreemtn to:
Pursue grant of a suitable planning consent and enter into a grid connection agreement
What are the landlords oblgations will provide reasoable assistace to tenant:
1) Identifying services/land drains
2) Providing constructon/contamination information
3) Keeping an option area in general condtition as at date of agreemnt
4) Not to install anything which would impact solar irradiation
5) support and not object to planning
6) Not allow a the party to develop a solar park on the landowner’s neighbouring property or carry out investigations during the option period
What is the longstop date
10 uears from date of option
What is a usual option extension fee
£5,000
What s the usual extension period and what is included
3-5 years in the following events:
1)waiting for planning decision DCO
2) waiting for outstanding appeal
planning granted or refused wihtin 8 weeks prior to expiry of initial option period or grid conenction agreemtn applied for buy outstanding. This is always subject to the longstop date
What is initial option fee
Between £1,000 and £10,000
What are the landlord’s obligation subject to the twnant entry condtions
1) prior notice to landowner/occupiers
2) making good damage to landowner/occupiers reasonable satisfaction, restriction on plant/equipment, compliance wiht H&S, maintaining public liability not less than £5 million, liable for any environment damage
What are the landowner’s restrictions
Landloard must not do anything which affects:
Tenant’s application for planning/ grid connection
Economic viability of the solar development
Excercise the tenants rights under the option agreemtn
compliance with planning/sat requirements
What terms are included in the lease
Solar lease rent, term, tenant break right, 1954 act lease, repair, environmental agreement, alienation , reinstatment/yield up, forfeiture, decommssioning, security, biodiverity net gain, rates, land agent fee, legal costs, confidentiality
What is includedin the solar rent
Solar acreage rent, sterilsied land, consider storabge rent, top up tunrover rent
