BUSINESS LEGAL COMMERCIAL PROPERTY

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Clean Energy Cash back for Commercial Property

Feed-in tariffs (FITs) provide a fixed payment for electricity generated on-site and for any unused electricity that is exported to the national grid. FITs are available to everyone and provide a financial incentive for small-scale green energy investment, such as the installation of solar electricity or photovoltaic (PV) panels.

By granting appropriate rights, including the right to the airspace above the property, a landlord can allow a tenant to install PV panels and generate electricity for on-site consumption.

Both parties can potentially benefit. They can share the FIT payments or the landlord (in lieu of such a share or market rent for the airspace) can reserve the right to draw free electricity.

Although FITs for large PV installations are under review, the need for 20% of the EU’s overall energy to come from renewable sources by 2020 and continuing warnings over levels of greenhouse gases, will see government continuing to encourage occupiers of commercial property to look at alternative energy supplies.

If you need legal advice on leasing space for PV panels, or other similar projects, Tollers has a team of  property lawyers who have experience in both renewable energy and landlord and tenant issues.

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