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Lease of land for wind farms

A land lease for a wind farm is a long-term agreement that allows the landowner to obtain a stable, predictable income that supplements (rather than replaces) their existing income from the land.  

Unlike a lease for a solar farm, wind turbines take up very little space (a foundation with a diameter of approximately 25 meters and an access road) and the landowner can continue to use the space for agricultural purposes.

What is a lease?

The landowner makes part of their land available for the location of a wind turbine and the necessary infrastructure. In return, they receive regular remuneration (increasing annually due to inflation indexation) throughout the term of the agreement.

Foundation or swept area?

In order to build a wind turbine, it is necessary to secure the rights to locate the foundation and turbine tower (together approx. 25 meters in diameter) on the plot, but also to secure the rights to the swept area under the rotor (up to 180 meters in diameter), which means that the owner of the wind farm ahs to pay for the turbine to rotate above a given plot. If the landowner receives remuneration for the foundation, the payment for the swept area is already included in the agreed rent. 

If the lease agreement only concerns the swept area (because the foundation is located on a neighboring plot, belonging to another person), the land owner receives remuneration only for the swept area (which is much lower than the remuneration for locating the foundation and turbine tower, but this remuneration is received without any impact on the plot, agricultural activity, etc. – only the rotor moves above the plot).

How much can you earn?

The amount of rent depends on several factors:

  • Does the agreement concern the foundation and turbine tower, or the payment is for the swept area only?
  • If it is for the foundation and tower, is the entire swept area located on the landowner’s plot, or does the investor have to secure and pay for the swept area to the owners of neighboring plots?
  • What is the attractiveness of a given wind farm project (location, wind strength, expected number of turbines, level of support in the municipality, expected problems from RDOŚ environmental authority or other institutions agreeing on permits, likelihood of securing grid connection, etc.).

Key provisions of the land lease agreement

Term of the agreement: typically 30 years, with a clearly defined start and end date;

Extension of the agreement: option to extend the agreement after 30 years;

Rent indexation: remuneration is indexed – increased annually based on the inflation rate;

Rent payment date: reservation fee at the start and target rent from the start of the wind farm construction process;

Property tax: the investor is required to pay property tax related to the wind farm;

Liability for damage: the investor is liable for damage caused during construction and operation;

Restoration of the land to its previous condition: after the contract expires, the land is reclaimed and restored to its original condition.

What if the project does not go ahead?

If, for formal or technical reasons, the project cannot be implemented, the contract expires and the land is returned in full to the owner. The owner does not bear any costs.

Can the land still be used?

Yes. Apart from a small area for the turbine foundation and access road, the land can still be used for agricultural purposes.

What does this mean for the landowner?

  • No costs whatsoever;
  • Long-term, stable income (increasing over time with inflation);
  • Increase in the value of the plot;
  • Possibility of further use of the land;
  • Clear and transparent rules of cooperation.

Do you have additional questions?

If you want to learn more, check out the FAQ or contact us directly – we will be happy to answer all your questions and quickly check whether wind turbines can be located on your plot (plots)

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