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?

Not for solar panels. The Farming Equipment and Technology Fund (FETF) 2026 window closed at midday on 12 May 2026, and its 2023–2026 item lists did not include solar panels to power a farm. No grant for solar panels on farms is open in England, and no Welsh, Scottish or Northern Ireland grant pays for them. The grant that did cover rooftop solar in England — round 2 of the Improving Farm Productivity (IFP) grant, which paid up to 25% of eligible costs — has closed (full applications closed 31 July 2025) and no further round has been announced. Under that closed scheme’s rules:

• Tenants needed their landlord’s written permission

• Contractors were not eligible

• Nothing could be bought before the grant funding agreement start date

The permission had to be written — a verbal agreement from your landlord was not sufficient.

Worth reading alongside this: solar farm profit per acre.

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

• 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

• 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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