The photovoltaic system on agricultural land: what you need to know
Photovoltaic system on agricultural land is an investment of interest to many landowners today. Often these areas do not prove particularly profitable for cultivation, and it is necessary to use them in other ways.
This form of investment works is straightforward: the land owner must first find an investor like Viridis and let him assess the suitability of the land.
Let’s delve into the steps to install a photovoltaic system on agricultural land.
The photovoltaic system on agricultural land: is suitable for installation?
The preliminary phase of photovoltaic system installation involves soil analysis. This procedure is organised and financed by the investor, who will send expert surveyors to the site to observe the ground conditions.
First of all, the space required for installation must exceed 8 hectares. The exposure must be south, so the panels enjoy sunlight most of the day.
The terrain must then be flat, possibly slightly inclined to allow the panels to acquire a lot of energy during most hours. Another fundamental requirement is the proximity to a transformer cabin. If this criterion does not exist, the investor will have to spend additional money to build transfer channels to the nearest cabin, which is not cost-effective.
Finally, there must be no planning restrictions.
The concession is granted if the land is suitable for installing photovoltaic systems. Depending on the agreement between investor and owner, this has a variable duration, but can be up to 30 years.
Every year, for the contract duration, the owner receives a more or less constant annual income that will stop if one of the two decides to terminate the contract or if the owner chooses to sell the land.
In the latter case, it is important to specify that the most reliable PV investors make sure that the structure of the land is not compromised, so that it can be reusable if disposed of.
However, some agreements need to be identified during stipulation so that misunderstandings and conflicts do not arise. For example, who will dispose of the plant once the land stops leasing? Photovoltaic system on agricultural land: How much is earned annually for each hectare of land granted?
Photovoltaic system on agricultural land: Land taxation
Another point that arouses the curiosity of landowners is the taxation of earnings from photovoltaics. In the case of agricultural land held for at least five years, there is no tax on earnings.
Recently, on the other hand, a registration tax at a rate of 0.5 per cent has been levied on new owners, since land is considered real estate when it is subject to rural land.
If, on the other hand, the lease does not relate to rural land, the lease will be subject to registration tax at the rate of 2 per cent.
How much money can be made by renting land for photovoltaics?
Let us conclude with a question that landowners rightly ask themselves before contacting an investor: how much do you make by installing photovoltaic panels on your land?
The figure depends on many factors, such as the quality of the land and the amount of energy that can be produced. Generally, earnings range between 2000 and 4000 euros per hectare per year. However, this is not only a method to earn more money by exploiting unused land but also a good strategy to contribute to the spread of green solutions for energy production.
So, if you want to profit from your unused land and contribute to the generation of cleaner electricity, thus supporting the decarbonisation of the energy sector, do not hesitate to contact Viridis for advice.