Roughly 30% of farmed land in England is let, mostly under Farm Business Tenancies (FBTs) since 1995, with older Agricultural Holdings Act (AHA) tenancies still common on long-established estates. Both tenancy types can accommodate solar — but the structure of the deal matters more than for owner-occupied farms.
FBT solar — three viable structures
1. Tenant installs, tenant owns, tenant takes savings
The cleanest arrangement for shorter FBTs (under 10 years). Tenant funds the install — typically via PPA or asset finance to keep capital free — and owns the system. Landlord grants written consent under the tenancy improvement provisions. At lease end, system is either removed, transferred to the landlord (often gratis), or extends with renewed tenancy.
2. Landlord installs, tenant uses, both share savings
Landlord funds the install (often using their own AIA capacity), retains ownership of the asset, and offers the tenant the electricity at a reduced rate vs grid. Tenant gets cheaper power; landlord gets a long-term asset on their land. Common where landlord is an institution (e.g. Crown Estate, Church Commissioners) or wealthy private estate.
3. Third-party PPA (most common)
A solar developer installs at no cost to either party, with a single tripartite agreement between landlord (roof/land licence), developer (asset owner), and tenant (electricity buyer). Both landlord and tenant benefit; no capital from either. Suits FBTs of 10+ years remaining.
AHA tenancies — special considerations
AHA tenancies (pre-1995, succeeding generations) treat solar as a "tenant's improvement" under the 1986 Act. The tenant can either:
- • Get landlord consent and install with an improvement notice — qualifies for end-of-tenancy compensation
- • Negotiate a side agreement for the landlord to install and the tenant to buy the electricity
- • Refuse to engage and miss the savings — increasingly the wrong call as energy costs rise
What we recommend to landlords
Solar on a tenanted farm increases the long-term value of the holding. Modern FBT renewals routinely require energy efficiency improvements. A solar system installed during the tenancy is an asset that boosts rental value, supports estate net-zero targets, and frequently attracts higher-quality successor tenants. Most estates we work with now grant solar consent as standard, subject to design review.
What we recommend to tenants
Open the conversation early. Don't wait for the rent review. Present the landlord with a fully-modelled proposal — system size, capital cost, savings, who benefits, who owns at term end. The landlords most likely to say no are the ones surprised by the request; those given a structured deal almost always engage.