Solar farms are mushrooming and there are numerous developers looking to sign landowners up for new schemes. But many projects may never get off the ground, and for your scheme to stand the best chance of reaching fruition, it's essential to choose the right partner.

Here is what you need to know before signing on the dotted line.

1. Don't let a good offer cloud your judgement

When a would-be solar developer comes knocking at your door, don’t be dazzled by the size of his cheque book. There is a limit above which the financial model will not work, so while it may be tempting to accept the highest offer, never do so without knowing the strength of the developer’s covenant – how long has the company been in business and what is its track record?

2. Check out previous schemes

Ask for evidence of previous successful schemes. Can you visit the development and speak to the landowner? Ask about failed schemes and the reason they failed.

3. Who is funding the scheme?

The planning process is extremely costly so find out who will be funding the scheme. If planning permission is granted, how does your developer intend to proceed? It is common for a developer to sell on the planning consent to a fund – will the firm you have been dealing with exit the scheme, severing the relationship, or will it install the site and thereafter maintain it?

4. What is the timeline?

Schemes larger than 5MW are now subject to Contracts for Difference which means developers have to bid for subsidy in October 2015. It is much more high risk. Most developers are now looking at schemes of 5MW or under which qualify for FITs (Feed in Tariffs). These can be developed all year round, but you should progress opportunities now to avoid digression of tariffs later in the year.

5. Study the contract

If you have already entered into an exclusivity deal but have seen no progress so far, consider whether you are able to break your contract for non-performance. Equally, has your exclusivity come to an end?

If the developer has applied for a grid connection check to make sure this can be transferred back to you as the landowner if you can’t agree terms.

Above all, never be afraid to ask searching questions, the most pertinent of which are strength of developer covenant and proof of past success.

Further information

Contact Savills Energy for more information.