With growing interest in on-farm renewables, many Queensland farmers are now looking at solar and battery storage as ways to reduce power costs and improve energy resilience. Some farmers are also considering hosting utility-scale projects (e.g. wind farm or solar farm) on their land as a way to earn a secondary income. But when planning and costing these projects, it is important to remember the end of the project and decommissioning – what happens when the infrastructure reaches the end of its life?
Renewable energy project developers seek long-term leases with landholders for project. The energy infrastructure will generally have a planned asset life of 20 – 30 years and the leases are often reflective of this and may include an option to extend.
The developer may consider two options near the end of this time, either to:
- Repower the site with new infrastructure, such as new turbines or solar panels.
- Decommission the project, closing the project and removing the infrastructure.
Whether you’re planning a small solar array or hosting a large-scale project, it’s important to factor in the full life cycle of the infrastructure, including how it will be removed, remediated, or repurposed in the future. Some things to consider are below.
- Cost implications: Removing panels, turbines or battery units and restoring the site can be expensive. Including decommissioning costs in your financial planning or contracts upfront can prevent costly surprises down the track.
- Land restoration: You may want to return the site to agricultural use or prepare it for a different development. Keep a good record of the site condition before the construction starts. It is important to have the discussion with the developer to agree on the scope of decommissioning: does is include the removal of foundations, piles, underground cabling? Does it include the removal of laydown and hard stand areas, removal of any access tracks and restoration of land to original condition? What will the local Council expect and include in any conditions of approval?
- Legal and lease obligations: If you’re working with a third-party developer, make sure your agreement includes provisions for extension of the project or decommissioning. Who is responsible for decommissioning and how it will be funded. How will that funding be guaranteed?
- If it is likely that the project will be re-powered, is there provision to re-negotiate the payment terms, particularly if the site is repowered with a larger project and higher output.
- Recycling and waste: New rules and opportunities are emerging around recycling solar panels and batteries. Planning ahead can save costs and reduce environmental impact.
Decommissioning large-scale renewable projects is a top concern for farmers, and it’s not hard to see why because there’s a lot to consider. The Queensland Renewable Energy Landholder Toolkit has useful information on this topic, all written for a farmer’s point-of-view.
For more tailored support, QFF’s Energy Information Service for Landholders is here to help you navigate the full picture when it comes to renewable energy projects – whether you’re exploring options, negotiating with developers, or planning for long-term outcomes like decommissioning. This is a free service run by QFF’s energy team.
The Energy Information Service for Landholders is available Monday to Friday from 8:30am – 5pm. Farmers and landholders can access the service by ringing 07 3329 7500.