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Thread: Wind turbine rental income

  1. #1
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    Wind turbine rental income

    Have been offered around 5k a year + bonus of 1.5k dependant on kw produced to lease 10m x 10m plot of ground to turbine company for an endurance 50kw turbine. Anyone had any experience of leasing ground and how do these figures sound?

  2. #2
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    Re: Wind turbine rental income

    10% of income plus a bonus. Why not put it up yourself?

  3. #3
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    Re: Wind turbine rental income

    You'll see from the other discussions on this subject various views but 6.5K is really nothing for the amount of potential hassle you're going to get. There's no such thing as a free lunch. Far better to be in control of your own (smaller) turbine or just go and buy a bit more SFP.

  4. #4
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    Re: Wind turbine rental income

    Just a case of amount of money to finance putting up my own turbine and bank doesn't seem keen to lend unless much bigger scale of project.

  5. #5
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    Re: Wind turbine rental income

    Think with the potential income,and fit, payments, gaurenteed bank /lenders, more willing than other farming cases, and if the fit payment covers the repayments, all ok???


    Why let some firm have all the money, and give you the hassel, turbine veiw,noise, etc.etc.for pennies?
    Some of these turbines are/can earn over 65 k a year???

  6. #6
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    Re: Wind turbine rental income

    so , in he comes that trustworthy ,dependable smiling chap , offers you eight thousand a year and all the power you can use.
    sign the paper - well whats to lose.
    planning sorted , back he comes , that fat chav in the black v12 ranging rover - well he bought the transferable contract.
    couple of details, fit rates dropped -five thousand a year.

    building starts mud everywhere - people needing everything from tractors to spades
    drains knacked, fences broken, noisy most days.

    no power - change of connection type - 87.04 a week for twenty years and who will dispose of it?, that grumbling sore
    he is on a nice boat on the south china sea bringing in an index linked 1100 a week.
    so what do you reckon?

  7. #7
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    Re: Wind turbine rental income

    Quote Originally Posted by wind up View Post
    so , in he comes that trustworthy ,dependable smiling chap , offers you eight thousand a year and all the power you can use.
    sign the paper - well whats to lose.
    planning sorted , back he comes , that fat chav in the black v12 ranging rover - well he bought the transferable contract.
    couple of details, fit rates dropped -five thousand a year.

    building starts mud everywhere - people needing everything from tractors to spades
    drains knacked, fences broken, noisy most days.

    no power - change of connection type - 87.04 a week for twenty years and who will dispose of it?, that grumbling sore
    he is on a nice boat on the south china sea bringing in an index linked 1100 a week.
    so what do you reckon?
    Is this a personal experience? Presumably so as you can nearly taste the bitterness! Sadly you might be right in some cases but provided you get everything nailed down with good legals and do some due diligence on the good company (or fat chav) you are dealing with then some might have a good experience.

  8. #8
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    Re: Wind turbine rental income

    For us, although the rent looked fine,

    legal expenses were not going to be reimbursed,
    we could have been sued for noise nuisance and no indemnity by operator for this,
    inheritance tax relief might have been lost,
    leaseholder had right to veto our future planning apps,
    unclear about who reinstates drains etc

    No doubt if we had employed a slick solicitor we could have renegotiated the proposed lease but this would have cost us thousands, then if project cancelled, money down the drain,

    And the whole thing did appear unprofessional, unhelpful and yes a bit chav like. So we walked away.

    no doubt there are reputable companies out there, but also a lot of spivs.

    Read the paperwork, ask awkward questions and take legal advice. Don't be rushed into something you will have to live with for 25 years or so. Big risk IMO.

  9. #9
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    Red face Re: Wind turbine rental income

    Both Wind up and DrWazzock have summed it up well. But in our case the chav came round first! The initial contract will nearly always be transferable (you should stop that!) as many operators just put a portfolio of lease sites together for resale. These people are here to make money FROM YOU, they are not doing you any favours. They will not cover your legal costs (as say a Housing Developer would) for a reason - any half awake contracts lawyer would laugh and re-write the whole thing. Anyone bought an Endowment Policy in the early 1990's?!
    Last edited by windylamb; 25-05-13 at 04:50 PM. Reason: spelling

  10. #10
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    Re: Wind turbine rental income

    I am amazed at how many people can look at a gift horse and decide the colour is not right for them.
    yes do look at the negatives
    do look at what you are possibly signing up to
    for that small corner of land may only pay 87 per week
    that is nearly 4500 a year for nothing, from a piece of land which would have earned nothing.

    do make sure you know what you are signing.
    a few hundred spent on a lawyer may earn you 90,000 over 20 years.
    get the wording right, speak to an agent, if you have a good site it may earn twice that.

    if the deal is so good why not do it yourself?
    Do not slag off someone prepared to take the risk getting planning , perhaps 20K
    spending anything from 300k to 1.5m to put up a turbine, and then blame him for relaxing in the profits after 15 years, for hat is how long it will take.
    oh and no I don't do wind.
    Ixworth Solar Farming Ltd.

  11. #11
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    Re: Wind turbine rental income

    Of course you're right Exfarmer, there are always two sides to the coin, it's just that from my experience some have been caught out by not knowing about both sides. BUT you never get anything for nothing, there is always a cost - may not be s but could be all sorts of things. That's why you are correct to advise about the lawyer - few hundred now could save/make you thousands later.

  12. #12
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    Re: Wind turbine rental income

    I have planning in for 2 gaias for myself and 2 large turbines that we will lease the land out on.

    My experience with the develolpers has been nothing but good. i had a wee problem in feb when i thought things were not going well. but i was sroted and we have moved in to planning. they payed the fees, we have a good contract and i cannot see a downside. mess when they put them up.... well i get a dirty great compo payment for the inconvenience! field drain damaged, then they sort them out. all covered.

    its 25 years of income on land i could not dream of returning me that sort of money. i chose a small company i met the directors and they have worked the development through all the stages without me signing the option agreement until we went for planning. they took me at my word.

    if they get them, i wont be bothering with working too hard, ill just keep things ticking over and enjoy life a bit!
    if they dont then, its another shit winter to look forward to.

    they are not all bad news.

    dominic

  13. #13
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    Re: Wind turbine rental income

    Quote Originally Posted by domsmith View Post
    I have planning in for 2 gaias for myself and 2 large turbines that we will lease the land out on.

    My experience with the develolpers has been nothing but good. i had a wee problem in feb when i thought things were not going well. but i was sroted and we have moved in to planning. they payed the fees, we have a good contract and i cannot see a downside. mess when they put them up.... well i get a dirty great compo payment for the inconvenience! field drain damaged, then they sort them out. all covered.

    its 25 years of income on land i could not dream of returning me that sort of money. i chose a small company i met the directors and they have worked the development through all the stages without me signing the option agreement until we went for planning. they took me at my word.

    if they get them, i wont be bothering with working too hard, ill just keep things ticking over and enjoy life a bit!
    if they dont then, its another shit winter to look forward to.

    they are not all bad news.

    dominic
    Funny we were in the same position 12mths ago,very positive,fast forward 12mths planning and grid in place but at a standstill.Good luck.

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