Leasing Land for a Solar Farm in Ireland
Solar farm developers are looking for land across Ireland and pay landowners an annual rent per acre, usually for 30 to 40 years. This guide covers what they pay, how the option and lease work, what land they want, and the tax and farm payment points to check before you sign. If you have land that might suit, you can register it for free below.
Developers looking for land
Advertise hereHow much do solar farms pay per acre?
Recent published figures put solar farm rent at roughly €1,000 to €1,400 per acre per year in Ireland. That is well above typical agricultural rents, which is why the offers get attention. Rents are usually linked to inflation, and some agreements add a payment if battery storage is built on the site.
| Rent per acre per year | Source | Published |
|---|---|---|
| €1,000 to €1,400 | Solar Ireland, the industry body | Irish Farmers Journal, December 2025 |
| €1,200 to €1,300 | Perigus Energy, a solar developer | Irish Farmers Journal, September 2026 |
| About €890 to €1,420 | Teagasc (€2,200 to €3,500 per hectare) | Teagasc Daily, 2025 |
| €800 to €1,200 | Teagasc energy specialist | Irish Farmers Journal, August 2023 |
Rent is paid on the whole leased area, but panels usually cover only about 40% of it. The rest is spacing, access tracks and buffers, much of which can still be grazed by sheep.
How a solar farm deal works
Option agreement
The developer pays for an option over your land, typically for about 5 years with the right to extend. Option fees vary widely, from a once-off sum to an annual payment. During the option the developer surveys the site and applies for planning and a grid connection.
Planning, grid and a route to market
The project needs planning permission from the council, a grid connection offer from ESB Networks or EirGrid, and usually a RESS auction win or a corporate power deal. Many projects stall here. See our solar farm planning tracker.
Lease
If the project goes ahead, the developer exercises the option and the lease starts, usually for 30 to 40 years at an agreed rent per acre, often linked to inflation.
Decommissioning
Planning permissions normally require the panels and structures to be removed and the land restored at the end of the project. Ask for that obligation to be backed by a bond or insurance in the lease.
What land do solar farm developers want?
- Close to the grid. Near an ESB substation or a 38 kV or larger overhead line, ideally without crossing a neighbour's land. Grid connection cost is the single biggest barrier.
- Enough of it. About 3.5 acres per megawatt. Projects are getting bigger, and many developers now want 100 acres or more. Neighbouring farms often combine to reach that.
- Flat or gently south-facing. Open land without heavy shading from hills or forestry.
- Away from houses and designated sites. Secluded land with few neighbours, outside flood zones and protected areas, has a better chance in planning.
Tax and farm payments
Income tax on the rent
Solar rent does not qualify for the long-term leasing exemption, even if sheep graze around the panels. Revenue treats it as income from a solar company, not farm land used for farming. Budget for income tax on the full rent.
Agricultural and retirement relief
Land under ground-mounted panels can still count for CAT agricultural relief and CGT retirement relief, but only where panels cover no more than half of the agricultural land concerned. Plan this before passing the farm on.
BISS and other schemes
Panels are ineligible features. With unrestricted sheep grazing the area around and under them can stay eligible. With limited access, only the strips between rows count. You need written access for the whole year and should flag the parcels in your application.
Option payments
How an option fee is taxed depends on whether the option is later exercised. Ask an accountant how yours will be treated before you sign, and keep records of every payment.
Before you sign: a checklist
- Get your own solicitor and accountant, and ask the developer to cover their fees.
- Check the developer's track record, funding and whether it plans to sell the project on.
- Avoid exclusivity until heads of terms are agreed.
- Know when the developer can walk away, and what you are paid if it does.
- Agree compensation for damage to drainage, access and soil during construction.
- Secure decommissioning and reinstatement with a bond or insurance.
- Get your lender's consent if there is a charge on the land.
- Expect delays. Not every project gets built: in the first RESS auction, the industry expected only about 450 MW of the 796 MW of solar awarded to reach completion.
Register your land
Tell us about your land and we will pass it to solar farm developers looking for sites in your area. It is free, and there is no obligation to agree to anything.
Related guides
Solar farms in Ireland map
Every connected and contracted solar farm, plus planning applications.
Community solar in Ireland
Community-owned farms and the benefit funds paid to local groups.
Solar panels for farms
Solar on your own sheds, TAMS grants and payback.
Solar planning permission
What is exempt and what needs planning in Ireland.
Solar farm lease FAQs
How much do solar farms pay per acre in Ireland?
Most recent figures fall between €1,000 and €1,400 per acre per year. Solar Ireland, the industry body, quotes €1,000 to €1,400, and a developer quoted €1,200 to €1,300 in September 2026. Rents are usually linked to inflation, and some deals add a payment if a battery is built on the site.
How long is a solar farm lease in Ireland?
Usually around 30 to 40 years. Before the lease, the developer takes an option on the land, typically for about 5 years with the right to extend, while it seeks planning permission and a grid connection. The lease only starts if the developer exercises the option.
How many acres do you need for a solar farm?
Roughly 3.5 acres per megawatt, so a 10 MW farm needs about 30 to 40 acres. Developers are now building larger projects, and many look for 100 acres or more, often by combining neighbouring farms. Being close to a substation or a 38 kV or larger power line matters more than size alone.
Is solar farm rent tax free under the long-term leasing exemption?
No. Revenue's guidance says rent from a solar energy company is not income from farm land used for farming, so the long-term leasing exemption does not apply, even if sheep graze around the panels. The rent is taxed as income. Get advice from an accountant before you sign.
Can I still claim BISS on land under solar panels?
Partly. The Department of Agriculture treats panels as ineligible features. If sheep have unrestricted access and the land is actively farmed, the area around and under the panels can stay eligible, less a small deduction for supports. If access is limited, only the strips between rows count. You need a written agreement giving you access all year.
Does a solar farm affect agricultural relief or retirement relief?
Land under ground-mounted solar panels can still count as agricultural property for Capital Acquisitions Tax agricultural relief, and as a qualifying asset for retirement relief, but only where the panels cover no more than half of the agricultural land concerned. Check your own position with a tax adviser before transferring land.
Sources
- Solar Ireland, the industry body: Irish Farmers Journal, December 2025
- Perigus Energy, a solar developer: Irish Farmers Journal, September 2026
- Teagasc (€2,200 to €3,500 per hectare): Teagasc Daily, 2025
- Teagasc energy specialist: Irish Farmers Journal, August 2023
- Revenue, Tax and Duty Manual Part 23-01-23 (long-term leasing exemption): revenue.ie
- Irish Farmers Journal, how solar farms affect BISS entitlements, April 2026: farmersjournal.ie
- Capital Acquisitions Tax Consolidation Act 2003, section 89 (agricultural relief): charteredaccountants.ie
- Irish Farmers Journal, Ireland's solar farm pipeline and acres per MW, October 2025: farmersjournal.ie
- pv magazine, RESS 1 delivery estimates, September 2023: pv-magazine.com
This guide is general information, not legal, tax or financial advice. Get independent professional advice before signing any option or lease.
Fact-checked by John Rooney, Solar Energy Editor. Editorial policy
John Rooney is the editor of Solar Info and has been covering the Irish solar energy market since 2023. He fact-checks all content against official SEAI data and maintains relationships with SEAI-registered installers across Ireland.