Leasing land for agrivoltaics in Germany raises practical, legal and tax questions. Below, Ylektra answers the 25 questions landowners and farmers ask us most often.
As a developer, EPC contractor (engineering, procurement and construction), investor and operator of agrivoltaic (Agri-PV) systems, Ylektra works with landowners across Germany. Whether you are considering a solar land lease for the first time or comparing offers, this FAQ explains how leasing land for agrivoltaics works.
General questions
1. What is an agrivoltaic system?
Agrivoltaic systems combine farming and solar power generation on the same land. The field continues to be used for crops or grazing while the solar modules produce renewable electricity.
The German standard DIN SPEC 91434 distinguishes two main categories of agrivoltaic systems:
- Category I: elevated systems that allow farming underneath the solar modules.
- Category II: ground-level systems (axis height of at least 2.10 m) where farming takes place between the rows of modules. Ylektra builds and operates Category II systems.
2. What are the benefits for me as a landowner?
- Additional, reliable income from the lease.
- A long-term use perspective for your land.
- A contribution to the energy transition and to sustainable agriculture.
3. Does the system restrict agricultural use?
No. The agrivoltaics concept is designed so that farming continues. We adapt the system design to your agricultural production and ensure that at least 66 % of the usual agricultural yield is still achieved, as required by DIN SPEC 91434.
4. Who develops the agricultural concept and makes sure it is implemented?
The agricultural concept is usually developed jointly by the landowner, the lessee and, where appropriate, agricultural advisors. Implementation is secured through regular expert inspections and provisions in the lease agreement.
5. Does the landowner have to farm the land personally?
No. The landowner is offered the option of farming the land between the module rows. If you do not wish to do so, Ylektra takes over this task and concludes a service contract with a farmer to cultivate the land.
6. How is it ensured that the agricultural concept is maintained throughout the subsidy period?
The lease agreement can specify regular reviews and reporting to ensure the agricultural concept is implemented continuously. Penalties for non-compliance can also be agreed.
7. How long does a typical lease last?
Leases for agrivoltaic projects typically run for 20 to 40 years, depending on the individual agreement.
8. Who is responsible for operation and maintenance?
Ylektra, or a service provider commissioned by Ylektra, is responsible for operating and maintaining the agrivoltaic system.
9. What happens if I want to sell the land?
You can sell the land at any time. The lease agreement remains in force and passes to the new owner. The dual use for energy and agriculture typically increases the value of the land.
Technical questions
10. How are the solar modules installed?
The modules are mounted on steel structures that allow mechanised farming between the rows. The steel posts are not set in concrete but driven into the ground.
11. How is the electricity transmitted from the system?
The electricity is fed into the public grid at the nearest grid connection point. We take care of all necessary permits and connections.
12. How long does the permitting process for an agrivoltaic system usually take?
The duration depends on local regulations and on the complexity of the project. As a rule, the process takes several months up to a year. Our guide to DIN SPEC 91434 explains the technical requirements in more detail.
13. Is agrivoltaics easier to permit than a conventional ground-mounted solar farm?
Agrivoltaic systems can have advantages in the permitting process because the land remains in agricultural use. However, the procedures are often similarly complex to those for conventional ground-mounted solar farms. The specific requirements depend on the local authorities and the legal framework.
14. What happens to the system at the end of the lease?
At the end of the term, the system is dismantled at our expense and the land is restored to its original condition, unless an extension of the agreement is agreed.
15. How is dismantling guaranteed after the lease ends?
The lease agreement contains a dismantling obligation that requires the lessee to remove the solar system at its own expense and restore the land. In addition, a dismantling guarantee (decommissioning bond) is agreed as financial security for the landowner.
Legal and financial questions
16. Who pays for installing and operating the system?
Ylektra bears all costs for the installation, operation and maintenance of the agrivoltaic system. As a landowner, you have no financial outlay.
17. How much rent will I receive?
The rent depends on factors such as the size and location of the land and the expected energy yield. We offer fair, market-standard terms.
18. Do I need a special permit to lease my land?
Ylektra clarifies all legal and permitting questions for you.
19. Do I have to pay tax on the lease income?
Yes, lease income is taxable. We recommend consulting a tax advisor about your individual situation.
20. What are the inheritance and gift tax consequences if the land is used for agrivoltaics?
Whether the land continues to be classified as agricultural and forestry assets depends on the design of the agrivoltaic system. Under the identical decrees of the German federal states of 15 July 2022 (Federal Tax Gazette Part I, page 1226), land carrying systems classified as Category I or II agrivoltaic systems under DIN SPEC 91434 is treated as agricultural and forestry assets. This results in significant tax advantages compared with leasing the land for a conventional ground-mounted solar farm. Further details are available in the NWB database (in German).
21. What risks does a landowner face when leasing land for a solar system?
Possible risks include liability for damage or accidents (Ylektra takes out all-risk insurance for this), tax consequences of higher lease income, ensuring dismantling at the end of the lease (covered by a dismantling guarantee) and the long-term commitment, which may restrict future use of the land. Selling the land, however, is always possible (see question 9).
22. Is it better to sell the land than to lease it?
A sale generates a one-off payment, while a lease provides regular, long-term income. The decision depends on your financial goals, tax considerations and plans for the land. We recommend discussing both the financial and tax aspects with an advisor. Ylektra is open to both leasing and purchasing land. Our article on leasing agricultural land for PV projects compares the options in more detail.
Environmental and sustainability questions
23. How sustainable are agrivoltaic systems?
Agrivoltaic systems make a significant contribution to reducing CO₂ emissions and enable more efficient land use. At the same time, they help protect farmland from the effects of climate change.
24. Does the system harm biodiversity?
No, quite the opposite. Agrivoltaic systems can promote biodiversity by creating habitats for insects and plants, for example through flowering strips beneath the module rows.
25. How much soil is sealed by an agrivoltaic system?
Soil sealing by agrivoltaic systems is minimal, at around 0.1 % of the area used.
Do you have further questions? Ylektra will advise you personally and support you throughout the entire process. Find out more on our page for landowners and farmers.
Contact us today and discover the potential of your land.