The Battle for Land: How Solar Energy Companies Are Driving Up Prices
In the world of agriculture real estate, the phones are ringing off the hook and the emails are flooding in. Christian Schulin-Zeuthen, the owner of Landbrugsmæglerne, which specializes in selling agricultural land and farms, is at the center of it all. Companies are vying to purchase land for solar panel installations, leading to a fierce competition for available land.
"It’s the battle for land," says Schulin-Zeuthen.
- Companies are willing to pay up to double the average price of around 200,000 Danish kroner per hectare for agricultural land, reaching as high as 300,000-400,000 kroner per hectare, he reveals.
- However, this premium price is contingent on obtaining building permits and grid connections for the solar parks.
Higher Returns on Solar Panels
Currently, solar panels cover approximately 3200 hectares of land in Denmark. With solar energy playing a crucial role in Denmark’s green ambitions, the Danish Climate Council projects that by 2050, 44,000 hectares of land – an area twice the size of Møn – will be dedicated to solar panels.
This exponential growth in solar energy infrastructure has led to a surge in demand for land suitable for solar panels.
- Klaus Kaiser, the chief economist at the independent innovation company Seges, notes that companies behind solar panel installations are willing to pay more for land than farmers because they can generate higher profits from solar energy than traditional crop farming.
- This significant demand from solar companies often drives up land prices, making it a lucrative investment for landowners.
Prime Land for Solar Panels
Not all agricultural land is created equal when it comes to suitability for solar panel installations. Green Power Denmark, a leading advocate for the green energy sector, highlights that certain types of land are better suited for solar parks, driving up the prices for these prime locations.
- Camilla Holbech, the department head at Green Power Denmark, emphasizes that areas with access to the electricity grid are the most sought-after for solar projects.
- She explains that while land prices are a significant factor, they are just one piece of the puzzle in the overall cost of developing solar projects.
In conclusion, the increasing demand for land for solar panel installations is reshaping the agricultural real estate landscape in Denmark. Solar energy companies are driving up prices for prime land suitable for solar parks, offering landowners the opportunity for higher returns on their investments. As Denmark progresses towards its green energy goals, the battle for land is heating up, creating both challenges and opportunities for stakeholders in the agricultural and renewable energy sectors.