Lease Prices for Arable Land 2026: Agricultural Lease vs. Solar Use Lease Compared
In the agricultural use of arable land and the establishment of solar parks on the same, lease agreements play a central role. An agricultural lease agreement allows the lessee not only to use the land but also to harvest the fruits of cultivation. This includes both the cultivation of crops and animal husbandry. Agriculture is traditionally focused on the long-term use and care of the soil, which is reflected in the terms of the lease agreements.
The quality of the soil plays a decisive role in agricultural lease agreements, as it influences the lease prices and the yields from cultivation.
In contrast, the lease agreement for solar use often promises high short-term lease payments. These agreements primarily concern the installation and operation of photovoltaic systems. Therefore, the contracts must not only align with agricultural interests but also consider additional legal and technical aspects, such as building permits and compliance with environmental regulations.
The differences between both types of lease agreements are considerable and require careful consideration of interests, especially when it comes to aspects such as contract duration, simple termination rights, and usage possibilities. Landowners thus face the decision of which form of leasing best suits their goals and long-term planning for their land.
Basics and Definitions of the Contract
Before discussing the differences between agricultural lease agreements and those for solar use, it is first important to understand the general concepts and specific definitions, including lease prices. The following subsections provide insights into the legal and economic frameworks as well as the special features of these types of contracts.
Lease payments vary significantly depending on the federal state and are influenced by various factors such as soil quality, location, and demand.
General Lease Agreement
A lease agreement is an arrangement where one party (the lessor) grants another party (the lessee) the use of a property in exchange for payment of a lease fee. The lease payment, i.e., the annual costs for agriculturally used land, averaged 357 euros per hectare in 2023. In 2026, arable lease rates still sit at around €350/ha, while solar leases reach many times that figure. This contract can exist both orally and in written form, with explicit form requirements applicable to certain lease relationships.
Lease Prices for Agricultural Land
In agricultural lease agreements, agricultural grassland or arable land is used by a farmer (lessee) to produce agricultural products. Such contracts are often regulated by the farmers' association and special funding programs for nature conservation-relevant management. According to § 585 BGB, they must be concluded in written form.
Lease prices for agricultural land have risen significantly in recent years, having considerable economic impacts on farmers.
Lease Agreements for Solar Use
Lease agreements for solar use allow the lessee to use the leased property for the generation of solar energy. This results in special requirements for the agreement, as solar use on a property represents a very specific and usually long-term lease. The solar lease agreement can include aspects such as the installation, maintenance, and operation of solar modules. A large portion of agriculturally used land in Germany is leased land, which is also significant for solar projects.
Here is a brief list of points that a lease agreement for the investment site of a photovoltaic system should include:
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Ownership Rights: The ownership rights to the PV system lie with the project company.
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Temporary Component Status: It must be regulated according to §95 BGB that the system is only temporarily installed and must be dismantled after the contract ends. This ensures that the system and the property do not merge into a single economic asset.
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Waiver of Landlord/Lessor Lien: A waiver of the landlord or lessor lien should be agreed upon.
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Fixed Term of the Lease: The lease term should be fixed, with an option for extension as long as it is not indefinite.
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Dismantling Obligation: A dismantling obligation of the system after the contract ends must be recorded in the lease agreement, and an option for takeover or purchase by the lessor should be removed. This allows the land to be used for agriculture again afterward. Additionally, this saves the farmer taxes, as the leased land continues to be treated as an agricultural and forestry operation and not as higher-taxed real estate.
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Exclusion of Ordinary Termination: The lease agreement should include a clause excluding ordinary termination.
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Regulation of Lease Payment: The modalities and amount of the lease payment must be clearly regulated, including whether it is paid annually, once, or in another form (e.g., as roof renovation).
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Right of Entry for the Financing Bank: A right of entry for the financing bank and the right to appoint a third person as legal successor must be agreed upon.
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Acknowledgment of Security Transfer: The acknowledgment of the security transfer of the system to the financing bank by the owner must be recorded in the contract.
Comparative Aspects
A comparison of both types of contracts shows that agricultural lease agreements primarily regulate the agricultural use of a property, while lease agreements for solar use specify commercial use for energy generation. Both types of contracts can include similar regulations and deadlines.
Lease payments for agricultural land vary significantly between federal states, while lease payments for solar use are often higher as they are based on potential energy yields. Owners who lease arable land for solar therefore usually earn many times the classic arable lease.
Legal Foundations
The legal foundations are anchored in the German Civil Code (BGB). For agricultural lease agreements, these are primarily § 585 to § 597 BGB. Particularly important is § 585a BGB, which stipulates a minimum term and a notice period of two years for land lease agreements. Such legal regulations contribute to the protection of the contracting parties and the promotion of stable lease relationships.
Economic Conditions
The economic conditions relate to the agreed payments and the execution of the lease. While the lease fee in agricultural lease agreements is often linked to yield values, lease payments for solar use are based on factors such as energy yields and possible feed-in tariffs. For agricultural land, lease prices vary greatly and are often stated in euros per hectare. These economic agreements are essential to ensure economic success for both contracting parties. Lease prices per hectare can vary significantly depending on soil quality, regional demand, and other factors.
Contract Design and Duration of the Lease Agreement
In designing lease agreements in agriculture and for solar systems, determining the duration and conditions for the lease price is of central importance. The specific conditions such as termination options and payment modalities differ significantly between these types of contracts. Prices vary depending on soil quality, supply-demand ratios, and regional differences.
Contract Duration and Termination Options
Agriculture: Lease agreements for agricultural land often have fixed terms and may include a two-year notice period for termination. Lease prices are often calculated per hectare, with average lease payments varying by federal state. It is not uncommon for such lease agreements to be concluded with terms of 6 to 12 years. An automatic extension of the lease agreement is given if no termination occurs.
Solar Systems: In contrast, lease agreements for the use of land by solar systems are often designed for 20-40 years. Termination options are usually only available in case of breach of lease conditions.
Lease Payments and Payment Terms
Agriculture: The agreed lease fee is usually paid annually and often amounts to several hundred euros per hectare, depending on the type of agricultural land. In some cases, payment in several installments within a year is also possible.
Solar Systems: In lease agreements for solar use, individual agreements on the lease fee are often made, which depend on the size and yield capacity of the system. An index-based adjustment of the lease fee can also be agreed upon to account for inflation effects.
Rights and Obligations
In agriculture and when using land for solar energy, there are specific rights and obligations that are recorded in the lease agreement when one wants to lease land. These are crucial for understanding the framework conditions and obligations of both types of leases.
Rights and Obligations in the Agricultural Lease Agreement
The agricultural lease agreement regulates the relationship between the lessor and lessee for the use of agricultural land, where often the lease price per hectare plays a central role. The lessee receives the right to cultivate the land and use the resulting yields. In doing so, they must fulfill certain obligations aimed at not deteriorating or damaging the land. These obligations include the proper management of the land, which is often directly included in the contract text. The lessor, in turn, has the right to the agreed lease fee and may submit a termination if the lessee does not fulfill their obligations.
The beginning and end of the lease relationship must also be clearly defined in the contract to guarantee legal certainty for both parties. It is quite common to make specific agreements in advance regarding the manner of management.
Rights and Obligations in the Solar Use Lease Agreement
In a lease agreement for solar use, the rights and obligations are different. Here, the lessor grants the lessee the right to use the leased land for the generation of solar power. The lessee is obliged to professionally install and maintain the solar systems. Additional measures and requirements can be a central part of the lease agreement to protect nature and the environment. Lease prices for leased land can vary depending on the geographical location and specific conditions for solar use.
The notice periods may differ from those of the agricultural lease agreement and are often aligned with the usage duration of the solar systems. Both types of lease agreements offer the option to extend the term under certain conditions.
Special Agreements
Regardless of the type of lease, individual agreements can be made, which are each directly included in the contract text. These often include special provisions on the manner of management or the implementation of certain measures that serve to maintain the leased condition or impose additional measures on nature and the environment. Such agreements are integral to ensuring that both parties know exactly under what conditions the lease takes place and what rights and obligations are associated with it. Additionally, lease conditions can vary greatly depending on the region, leading to different price developments.