Q0025
A landowner should verify the developer, preserve control until feasibility is established, understand the land and grid risks, and negotiate payment, liability, restoration and termination terms for the entire development and operating period. The highest advertised rental is not necessarily the best offer if the developer cannot secure an award, approvals, grid access or financing.
Solar arrangements can affect land for 20–30 years or longer. A poorly drafted agreement may sterilise the property without producing a project, transfer unexpected costs to the owner or leave unresolved equipment and restoration obligations at the end.
Ask for:
A party seeking an introduction or option should not be presented as a funded project owner without evidence.
Ask:
A land lease does not itself create a viable solar project.
Early arrangements commonly begin with an exclusivity or option period while the developer investigates feasibility. The agreement should define:
Avoid granting long, inexpensive exclusivity without deadlines and evidence of active development.
Review:
Use independent Malaysian legal and land advice.
The project may require:
Determine whether these rights are included in the rent or paid separately.
Possible structures include:
The landowner should consider certainty, upside, tax, financing exposure and whether payments begin only after commercial operation.
The agreement should state who pays for:
Address:
The landowner should be named appropriately under insurance arrangements without accepting operational responsibility.
The agreement should specify:
PLANMalaysia’s planning framework includes a decommissioning plan and restoration of land after the solar farm’s service period.
Long leases can affect inheritance, financing, adjoining land uses, workers and neighbouring communities. Owners should explain long-term restrictions to all parties with a legal or beneficial interest.
Until due diligence is completed:
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