Solar Panels for Tenant Farmers UK | FBT, AHA & PPA Options Explained

Tenant farmers represent around 30% of agricultural land in England — and face a distinct set of challenges when considering solar panel installation. Unlike owner-occupiers, tenants must navigate landlord consent requirements, tenancy-end ownership questions, and the risk of investing capital in a building they do not own. Yet solar is entirely achievable for tenant farmers, and in many cases the financial returns are just as compelling. This guide explains every route available and the specific protections you should put in place.

Do Tenant Farmers Need Landlord Consent for Solar Panels?

Yes — always. Whether you hold a Farm Business Tenancy (FBT) under the Agricultural Tenancies Act 1995, or an older Agricultural Holdings Act (AHA) tenancy, you require written consent from your landlord before installing solar panels on farm buildings you rent. Installing without consent could constitute a breach of your tenancy agreement.

Most tenancy agreements include clauses requiring consent for alterations and improvements. Even where the agreement is silent on solar specifically, the general principle is that the tenant cannot make structural alterations to a landlord’s property without permission. Solar panels are classified as an alteration or improvement, not a standard maintenance activity.

Can Tenant Farmers Get FETF Grants?

Yes. The Farming Equipment and Technology Fund (FETF) is open to tenant farmers, provided that:

• You have written consent from your landlord for the specific installation

• Your farm business is registered with the Rural Payments Agency (RPA)

• The consent explicitly permits the FETF grant application

• You apply within the FETF application window (typically competitive rounds)

The FETF grant rate of up to 40% of eligible costs applies equally to tenant farmers as to owner-occupiers. The grant is assessed on the farming business, not property ownership. However, FETF documentation requires evidence of consent — a verbal agreement from your landlord is not sufficient.

FBT vs AHA Tenancies: Key Differences

Farm Business Tenancies (FBT) under the Agricultural Tenancies Act 1995 are generally more flexible but offer fewer statutory rights for improvements. Most modern FBTs are silent on solar specifically, which means you need an express clause in the agreement permitting solar installation, or a separate consent letter.

AHA tenancies under the Agricultural Holdings Act 1986 offer stronger statutory protections. Under the AHA, landlords cannot unreasonably withhold consent for tenant improvements. If your landlord refuses consent without reasonable grounds, you may have recourse through AHA arbitration. However, agricultural solicitor advice is essential before relying on this route.

What Happens to Solar Panels at Tenancy End?

This is the most critical question for tenant farmer solar. The options are:

• Tenant’s fixtures: If documented as tenant’s fixtures at the time of installation, you retain the right to remove panels at tenancy end, making good any damage. This is the default position for many professional installations.

• Landlord purchase: Negotiate a right for your landlord to purchase the system at a fair market price at tenancy end. This protects you from the inconvenience of removal and gives the landlord an asset.

• Agreed compensation: Negotiate a written schedule of compensation payable by the landlord if tenancy ends before the system’s capital cost is recovered.

• PPA route: Avoid the ownership question entirely by using a Power Purchase Agreement, where a third-party investor owns and maintains the system.

The PPA Option for Tenant Farmers

For many tenant farmers — especially those on shorter tenancies or with limited capital — a Power Purchase Agreement (PPA) is the lowest-risk route to solar savings. Under a PPA:

• A third-party investor installs and owns the solar system at no cost to you

• You purchase the electricity generated at a discounted rate (typically 15-30% below grid prices)

• The investor handles all maintenance, insurance, and monitoring

• No capital is at risk if the tenancy ends — the PPA is with the investor, not the landlord’s building

Landlord consent is still required for a PPA (the system is installed on their buildings), but the landlord’s risk is zero — making consent easier to obtain. Many landlords who would hesitate to agree to tenant-funded installations are happy to support a PPA arrangement.

For more detail, see our dedicated Tenant Farmer Solar guide and our page on Agricultural PPAs.

Negotiating with Your Landlord

The most important advice we give to tenant farmers is to frame the conversation in terms of mutual benefit. Solar increases the value of farm buildings, reduces your operating costs (making you a more financially stable tenant), and demonstrates a commitment to sustainability that many farming estates now prioritise. Key negotiating points:

• Offer the landlord a share of any Smart Export Guarantee income as an incentive

• Propose a joint FETF application to maximise grant funding for both parties

• Suggest the landlord purchases the system at residual value if tenancy ends early

• Offer a fixed-term commitment (e.g., 10-year lease renewal) in exchange for consent

Always obtain written consent before any work starts and before submitting any grant applications. The Tenant Farmers Association (TFA) provides template consent letters and specialist legal support for members.

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