Based on an analysis of the existing schemes for adjoining properties of wind turbines and solar energy plants, a political agreement has been made concerning phasing out of the present purchase option scheme, change of the value reduction scheme and establishment of three new schemes to improve the conditions of the affected citizens.

The changes are made as part of a broad political agreement the purpose of which is expand the use of renewable energy in Denmark to fulfil the aim to reduce CO2 emission by 70 % in 2030.

Put option to adjoining properties

Residential properties within the range of 4-6 times the height of a wind turbine plant or within 200 metres of a solar energy plant, wave or water power plant may now sell the property to the company installing the plant. Citizens who do not wish to be the neighbour of a future renewable energy plant may thereby sell their properties at a price estimated by the independent valuation committee.

Bonus scheme for adjoining properties

A bonus scheme will be established according to which adjoining properties within a range of 4-8 times the height of a wind turbine or within 200 metres of a solar energy plant will receive an annual bonus. The bonus will be tax-free and amount to approx. DKK 5,000 each year to adjoining properties of wind turbines and approx. DKK 2,000 each year to adjoining properties of solar energy plants.

Green pool to the municipalities

The new political agreement is also relevant for the municipalities. The company installing the wind turbines or the solar energy plant must pay a lump sum to the municipalities depending on how many MW the plant produces. The largest amount will go to near-shore wind turbines, while a somewhat smaller amount will go to on-shore wind turbines, and the smallest amount to solar energy plants. The municipalities must spend the pool money on improving the local areas on which the renewable energy plants are to be installed.

Value reduction scheme is changed and the purchase option scheme is phased out

The time of estimating the value reduction of a residential property where a renewable energy plant is installed nearby is changed to the time after the plant has been installed. This is to have the effect that the estimation of the value reduction better reflects the actual reduction of the property’s value. In addition, the purchase option scheme where local citizens have the opportunity to purchase shares in wind turbines will be phased out as the scheme has not worked as intended.

The Act on the implementation of the changes is expected to be introduced in February 2020.

contacts

Søren Hornbæk Svendsen

Partner

René Frisdahl Jensen

Partner (L)