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How to Choose a Solar Developer UK: 5-Point Vetting Checklist (2026)

Not all solar developers are equal. Use this 5-point checklist to evaluate funding, track record, lease terms, grid strategy, and option payments before signing anything. Includes red flags that cost landowners thousands.

The SolarGridCheck Team
12 min read

Choosing a Solar Developer: Key Facts

Evaluate solar developers on five criteria: funding source (named fund, not just "we have investors"), planning track record (request 10+ approved UK projects), lease terms (£800-£1,500/acre with RPI), grid connection strategy (existing offers or adjacent projects), and option payments (£100-£500/acre/year, never free exclusivity). Red flags include pressure to sign quickly, no UK track record, unusually high rent promises, and requests for exclusivity without payment.

The developer you choose will manage your land for 25-40 years. A weak developer means project failure, lease complications, and years of wasted time. A strong developer means reliable income, professional management, and a project that actually gets built. Here's how to tell the difference.

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Why Does Developer Choice Matter So Much?

Solar farm development takes 3-5 years from initial contact to generating electricity. During this time, the developer handles planning applications, grid connection, environmental surveys, and construction. If the developer fails at any stage, your land has been tied up for years with nothing to show for it.

The risks of choosing the wrong developer include:

  • Project failure: The developer fails to secure planning or grid connection, and your option period expires with no income beyond the option payments
  • Financial collapse: The developer runs out of funding mid-project, leaving your land in legal limbo
  • Poor terms: You discover after signing that the lease terms are significantly below market rate, costing you tens of thousands over the lease lifetime
  • No decommissioning protection: The developer goes bankrupt 15 years in, leaving you with a defunct solar farm and no bond to cover removal costs

Real Failure Patterns in UK Solar Development

  • The "option squatter": A developer secures exclusive options on 500+ acres across multiple landowners but lacks funding to develop any of them. After 3 years, the options expire. The landowner received £100-£200/acre/year in option payments but lost 3 years of potential development with a funded developer — a net cost of thousands in delayed income.
  • The mid-project collapse: A small developer secures planning permission but cannot raise construction finance. The planning permission has a 3-year implementation deadline. If the developer cannot assign the permission to a new developer in time, the permission lapses and the entire process restarts.
  • The below-market lock-in: A landowner signs a 35-year lease at £650/acre in 2022 without comparing offers. Market rates at the time were £850-£1,100/acre. Over 35 years with RPI, the difference between £650 and £1,000/acre is approximately £400,000 on a 100-acre site.

The 5-Point Developer Vetting Checklist

1. Funding Source & Financial Stability

The most important question: who is paying for this project? Tier 1 developers backed by infrastructure funds, pension schemes, or public utilities have lower project failure rates because funding is already secured.

What to ask:

  • "Can you provide a development agreement or letter of intent from your funding partner?"
  • "Which fund or institution is backing this project?"
  • "What is your company's annual turnover and how many projects have you funded to completion?"

Red flag: "We have investors" or "funding is being arranged" without naming the fund or institution. If a developer cannot demonstrate secured funding, they are speculating with your land.

2. Planning Track Record

Request a list of completed UK projects with planning references you can verify on local authority planning portals. A developer with 10+ approved projects demonstrates they can navigate the planning system.

How to verify:

  • Ask for the planning application reference numbers (e.g., "22/01234/FUL")
  • Search the relevant local authority planning portal
  • Confirm the developer is named as the applicant or agent
  • Check the application was approved and the project was built (look for discharge of conditions applications)

Red flag: No UK track record, even with claimed international experience. UK planning rules are specific — experience in other countries does not transfer directly.

3. Lease Terms & Rent Escalation

Current UK solar farm lease rates are £800-£1,500/acre/year with annual RPI increases. Compare the developer's offer against these benchmarks:

  • Premium sites (within 1 mile of substation, 100+ acres, south-facing): £1,100-£1,350/acre
  • Standard sites (1-2.5 miles from substation, 30-100 acres): £850-£1,100/acre
  • Battery storage (near 33kV+ substation, 0.5-2 acres): £10,000-£40,000/acre

Red flag: A high initial offer with no RPI escalation. £1,500/acre fixed is worth less than £1,200/acre with RPI over 25 years. See our lease negotiation guide for detailed analysis.

4. Grid Connection Strategy

The grid connection is the biggest bottleneck in UK solar development. The current queue has 500GW+ of projects waiting, with connection dates in some areas of 2030-2036. Ask the developer:

  • "What grid capacity have you identified for this site?"
  • "Do you have an existing grid connection offer or pre-application from the DNO?"
  • "What are the expected connection costs?"
  • "Do you have adjacent projects that share grid infrastructure?"

Developers with existing grid offers or adjacent projects that can share connection infrastructure have a significant advantage over those starting from scratch.

5. Option Payment & Exclusivity Terms

The option agreement is your compensation during the 2-3 year planning phase. Standard terms are:

  • Solar option payments: £100-£500/acre/year
  • Battery storage option payments: £1,000-£5,000/acre
  • Option period: 2-3 years maximum, with paid extensions if needed
  • Conversion: Clear trigger for when the option converts to a full lease (typically on planning approval)

Red flag: Requests for exclusivity without payment. This is the single most common way developers exploit landowners. If a developer wants exclusive access to your land, they should pay for it.

How to Verify Developer Claims: Due Diligence Steps

Developers will make claims about their track record, funding, and capabilities. Here is how to independently verify each claim before signing anything:

  1. Companies House check. Search for the developer on Companies House. Check: incorporation date (be wary of companies less than 2 years old), filed accounts (look for revenue, assets, and net worth), and active director history. A developer claiming 10 years of experience but incorporated 18 months ago is a red flag.
  2. Planning portal verification. For every project the developer claims, search the local authority planning portal for the application reference. Verify: the developer is named as applicant or agent, the application was approved, and discharge of conditions applications exist (indicating the project was actually built, not just permitted).
  3. FCA register (if offering investment). If the developer is offering equity participation or asking for investment, check the FCA Financial Services Register. Solar development companies that take investment without FCA authorisation may be operating illegally.
  4. Ask for landowner references. Request contact details for 2-3 landowners with operational sites. Call them directly and ask: "Did the developer deliver what they promised? Were there delays? Would you sign with them again?"
  5. Grid connection evidence. Ask the developer to provide their DNO connection offer letter or budget estimate for your site. If the developer cannot show any grid engagement, the project is speculative.

Developer Comparison Scoring Matrix

Use this scoring matrix to compare developers side-by-side. Score each criterion 1-5 and total the scores to identify the strongest overall package:

CriterionScore 1 (Weak)Score 3 (Acceptable)Score 5 (Strong)
Funding"We have investors" — no named fundNamed fund, development agreement in progressSigned development agreement with named institution
Track RecordNo UK projects, international only5-10 approved UK projects10+ built UK projects with verifiable references
Lease TermsBelow £850/acre, no RPI, long option£850-£1,000/acre with RPI£1,000+/acre, RPI, decommissioning bond, break clauses
Grid StrategyNo grid engagement, "we'll sort it later"Budget estimate requested from DNOExisting connection offer or adjacent project sharing infrastructure
Option TermsExclusivity with no payment£100-£200/acre, 3-year option£300-£500/acre, 2-year option with paid extensions

Scoring guide: Developers scoring 20+ out of 25 are strong candidates. Scores of 15-19 are acceptable but negotiate harder on weak areas. Below 15, consider other options. Any criterion scoring 1 is a potential dealbreaker regardless of total score.

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What Types of Solar Developers Exist in the UK?

Tier 1: Infrastructure Funds & Utilities

Large-scale developers backed by institutional money — pension funds, sovereign wealth, infrastructure investment trusts. These developers target 50MW+ projects on 100+ acres. They have the lowest failure rates and offer the most secure lease terms, but may offer slightly lower per-acre rates because they have less competition pressure.

Tier 2: Specialist Solar Developers

Mid-size companies that develop solar farms as their core business. They typically handle 5-50MW projects and may offer competitive rates because they are actively competing for sites. Verify their funding source carefully — some specialist developers are well-funded, others are speculative.

Battery Storage Specialists

BESS-focused developers target small plots (0.5-2 acres) near high-voltage substations. They pay significantly higher per-acre rates (£10,000-£40,000) but require specific grid infrastructure proximity. If your land is near a 33kV+ substation, a battery storage developer may offer a better deal than a solar developer.

What Should the Developer Selection Process Look Like?

  1. Step 1: Assess your site independently. Use a grid capacity checker to understand your land's proximity to substations and available capacity before talking to any developer.
  2. Step 2: Engage 3-5 developers. Contact multiple developers simultaneously. Let each know you are comparing offers. This creates competitive pressure on both rates and terms.
  3. Step 3: Apply the 5-point checklist. Score each developer on funding, track record, lease terms, grid strategy, and option payments. Eliminate any with red flags.
  4. Step 4: Get independent legal advice. Before signing any option agreement, hire a solicitor specialising in renewable energy land agreements. Budget £2,000-£5,000 — this investment typically pays back 10-50x over the lease term.
  5. Step 5: Negotiate from strength. With competing offers and legal support, negotiate the best combination of rate, escalation, decommissioning bond, and break clauses. The best deal is rarely the highest per-acre rate — it is the strongest overall package.

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Solar Developer FAQs

Frequently Asked Questions

Ask for planning references from at least 10 completed UK projects and verify them on local authority planning portals (search by the developer's name or company number). Check Companies House for the developer's financial filing history, and ask for evidence of a named investment fund or development agreement backing the project.
Solar farm option payments are typically £100-£500/acre/year. Battery storage option payments are £1,000-£5,000/acre. These payments should begin immediately when you grant exclusivity. Never grant exclusivity without payment — it's the clearest red flag in the industry.
Approaching developers directly often weakens your negotiating position. Developers may lowball if they know you've only spoken to them. Instead, get an independent site assessment first to understand your land's true value, then create competition by engaging 3-5 developers simultaneously.
Tier 1 developers are backed by infrastructure funds, pension schemes, or public utilities with secure long-term funding and proven delivery track records. Smaller developers may offer higher initial rents but carry more project failure risk. For a 25-40 year lease, developer financial stability matters as much as the initial rent offer.
Typical timeline: 6-12 months for option agreement and surveys, 12-18 months for planning application, 2-3 years for grid connection queue, then 6-12 months construction. Total: 3-5 years from initial contact to operational solar farm.
It depends on your option agreement. If the option period has expired without planning permission being achieved, you're free to approach other developers. If the option is still active, you're bound by the exclusivity terms. This is why time-limited options (2-3 years max) are important.

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