'Do you have to make hay when the sun is shining?'

There are various options for installing solar panels on agricultural land. Should you take advantage of this (auspicious) opportunity, as the proverb says 'hay when the sun shines'?

Establishing a solar park has many fiscal consequences. From the moment the solar park is founded, the agricultural exemption no longer applies. A solar park can also lead to a strike by your (agricultural) company, with all the associated consequences.

If the relevant piece of agricultural land has been transferred in the past 10 years with the agricultural land exemption in the transfer tax, this exemption will be withdrawn.

Explore the tax options
It is important to thoroughly investigate the fiscal (im)possibilities beforehand, in order to avoid unpleasant surprises later on. It is also important to consider the following questions:

• Can the soil still be included in the manure accounting?
• Can payment entitlements be cashed in on the ground?
• Does your plan fit into the zoning plan and what actions are required?
• How does your mortgage lender feel about a solar park?
• Is any added value clause from your deed of cooperation still important?
• How is the discussion with regard to grazing and land-based agriculture developing?

Solar panels on roofs
In addition to establishing a solar park, installing solar panels on roofs is still attractive (for example by replacing asbestos). It is also possible to rent out your roofs to an external party, who will install the solar panels on your roofs. You will then receive an annual fee for this.

We see many operators and a wide range of contracts and variants for both solar parks and the rental of your roofs. It is striking that people are often asked to sign for approval quickly, while essential legal, financial and tax principles and conditions are still unclear. The express advice is therefore to only sign when all the consequences for you have fully crystallized.

This article was recently published in 'Zuivelmarkt De Analyze 2017'. Click here to still receive the magazine.

Alice Fisher

Alies Visscher is a tax lawyer at Countus. She studied tax law at Utrecht University and University of Amsterdam and advises entrepreneurs in small and medium-sized enterprises, including those in the agricultural sector.

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