Solar landlord, tenant and funder must agree terms

Another common pitfall in solar farm option agreements and leases to look out for is the Funders Clause.

The ethos of most solar farm schemes is that the solar company does the work to get planning and put the option and lease in place, with the funding coming from another source,a bank or financial institution or investor group.

The funder wants to protect his investment, so options and leases contain clauses such as this: “The landlord will at the company’s request and cost enter into a direct arrangement with any funder on such terms as the funder reasonably requires”.