Frequently asked questions
Is the lease rent indexed to inflation?
Yes. The agreement provides for rent indexation, thanks to which its real value is maintained over time.
Who pays the property tax associated with the wind farm?
The property tax resulting from the construction of the wind farm is borne by the investor, not the landowner.
What happens after the agreement expires, e.g. after 30 years?
After the agreement expires, the power plant is dismantled and the land is reclaimed and restored to its previous condition. There is also an option to extend the operation (e.g. by an additional 10 years) if both parties agree, which will extend the period of income from the lease for the landowner.
Can I negotiate the terms of the lease agreement?
Yes. The terms of the agreement are determined individually and discussed with the landowner before signing.
Is rent paid even when the power plant is not operating?
Yes. The lease rent is independent of current energy production and is paid since the construction process for the wind farm starts.
Does the lease agreement affect the possibility of selling the land?
No. The land can be sold and the agreement is transferred to the new owner. The value of the land increases due to the high rent paid by the wind farm.
How much of the plot is actually occupied by the wind turbine?
A small part of the land is occupied by the foundation (approx. 25 meters in diameter) and the access road, the rest of the plot remains at the owner’s disposal.
Does the construction of a wind turbine destroy agricultural land?
After completion of the work, the site is tidied up, and after the end of the agreement, the land is reclaimed.
Is the investor liable for damage to crops?
Yes. The investor is liable for damage caused during construction and operation. In addition, if the construction results in losses related to a lack of income after sowing the field, the lease agreement provides for additional compensation for this.
Can I terminate the contract early?
The termination rules are clearly described in the contract. As a rule, an investor who commits very large funds to the construction of a farm expects to be able to benefit from that farm for at least 30 years. If the investor stops paying rent (a situation which did not occur in Poland on any wind farm yet), the contract can be terminated by the landowner.
Can more than one turbine be built on the plot?
This depends on local conditions and planning arrangements – each case is analyzed individually. For large plots, it is sometimes possible to locate two (or more) turbines on one plot, while maintaining an appropriate distance between the turbines (so that energy production is not affected too much). Investors do not locate turbines closer than three times the diameter of the rotor (approx. 500 meters) perpendicular to the wind line (i.e., most often in a north-south line) and five times the diameter of the propeller (approx. 750 meters) parallel to the wind line (i.e., in a west-east line).
Do I have to agree to an access road across the entire plot?
Access roads are necessary to maintain and service the wind turbines. The route of access roads is determined in such a way as to minimize the restriction of land use.
Is the lease agreement inheritable?
Yes. In the event of inheritance of the land, the agreement is transferred to the heirs.
Can I consult a lawyer about the agreement before signing it?
Of course. We encourage you to carefully review the agreement and consult with an advisor. We are open for discussion and also note that our contracts have been proved in many such cases and are market standards.
Where will the wind farm be connected to the grid?
The wind farm is connected to the power grid, usually to the nearest GPZ (Main Power Supply Point). The exact connection point is determined in the connection conditions issued by the grid operator.
How long does it take to build a wind farm?
The construction of a wind farm itself usually takes from several to over a dozen months, depending on the size of the farm and the complexity of the process. The longest part of the project is the preparatory and formal stage, which precedes the start of construction work and can take up to 5-6 years.
Does the municipality benefit from a wind farm?
Yes. A wind farm generates revenue for the municipality’s budget in the form of property tax. In practice, this can be up to approximately PLN 200,000 per year per turbine, which is a significant and stable source of income for the municipality for many years to come.