Emerging renewable energy opportunities for Queensland landholders

22 October 2025

As the renewable energy sector rapidly expands across Australia, Queensland has emerged as a key region for investment in large-scale solar, wind, battery storage, and hydrogen projects. Landholders and primary producers are increasingly being approached by renewable energy developers (also known as “proponents”) seeking to lease or acquire land rights to develop renewable energy projects.

It can be a once-in-a-generation opportunity for landholders to diversify income streams and ensure long-term security – if the deal is done right. While renewable energy proposals offer the potential for significant income and long-term partnerships, they also carry legal, commercial and practical implications that must be carefully considered. Thynne + Macartney helps Queensland landholders to evaluate and negotiate these opportunities to achieve the best possible outcomes – on the landholder’s terms.

Why is Queensland in Demand?

Queensland’s natural advantages – abundant sunshine, strong wind corridors, large tracts of land and proximity to transmission infrastructure – make it a key area of interest for developers. Queensland’s Renewable Energy Zone initiatives and government support have accelerated investment in solar, wind, battery and hydrogen projects. Developers are increasingly approaching landowners with offers to host energy infrastructure, which have the potential to span decades and significantly alter land use. For landholders, this may represent a rare opportunity to secure long-term, passive income streams while playing a key role in Australia’s energy future, provided the deal is commercially sound and legally protective.

What to Do if Approached by a Renewable Energy Developer

1. Seek Legal and Commercial Advice Early

Early advice is critical. Some proponents may present seemingly simple access licences or option agreements that, once signed, bind a landholder to onerous or one-sided terms. Seeking specialist legal advice from the outset can help you to understand the nature of what’s being proposed, your legal rights, and avoid inadvertently compromising your future negotiation position. Thynne + Macartney’s Agribusiness team provides advice to landholders on a daily basis to ensure that they remain in control throughout negotiations and are well positioned to secure favourable outcomes before committing to anything.

2. Assess the Proponent: Not all Proponents are the same

Not all energy developers have the same experience, financial and technical capabilities, or long-term intentions. Some may be large, well-resourced companies with a proven track record and established projects, while others may be early-stage operators looking to secure land before selling the project to another party. Thynne + Macartney can help you to undertake due diligence on proponents by investigating the developer’s background, examining their capacity to finance, construct and operate a project over the long term, and assess their engagement with regulators, communities and landholders in past projects. This ensures you enter into any agreement with a full understanding of who you’re dealing with and the likelihood of the developer being able to secure grid connection and planning approvals.

3. Explore Your Options: Don’t Sign the First Offer

Many landholders are surprised to learn that their land is located in an ideal location and multiple developers may be interested in the same region. However, signing the first deal can limit your options and undervalue your land. Instead, it is recommended that landholder’s take a measured approach, gathering competing proposals if available, and allowing time for negotiation. This empowers you to choose the developer who offers the best combination of financial return, operational safeguards, and long-term reliability. There are also various ways to approach multiple proponents in order to generate interest and secure the best deal, with landholder’s being in the driving seat. Thynne + Macartney has represented both individuals and groups of landholders in this capacity on a number of occasions, with successful results.

Important Key Commercial and Legal Terms to Negotiate

There are various terms to consider once a developer has been selected and further agreements are negotiated. While by no means an exhaustive list, the following outlines some of the key considerations that a landholder should consider when negotiating future agreements.

1. Option Fees and Access Payments

These are initial payments made by the developer in exchange for the right to investigate your land (such as conducting environmental, engineering or cultural heritage studies) and potentially enter into a lease or licence in the future. The amount of these payments can vary widely depending on the scale of the project and the value of your land. Thynne + Macartney work to ensure that landholders are fairly compensated for access and that any agreements include clear timelines, scope limitations, and termination rights if a project doesn’t proceed or the developer does not meet key milestones.

2. Lease or Licence Payments

These payments generally form the long-term income stream once an option is exercised. The structure of payments can vary between a fixed rate per hectare, various rates for the type of infrastructure or land type, minimum guaranteed rents, or a revenue share linked to the project’s output. It is important to negotiate terms that reflect market value, including periodic reviews and indexation (such as CPI increases), in order to provide certainty over a potential 25-60 year lifespan of a project. It is also important to consider the classification of payments and ownership structure to optimise the tax treatment of payments.

3. Land Use Protections

It’s vital that you retain the ability to continue your agricultural operations where possible. For example, solar installations often cover only part of a property, and co-use (e.g. grazing beneath solar arrays) may be feasible. Ensuring that land use clauses are drafted appropriately in order to protect your existing operations, control when and how the developer can access your land, and restrict disruptive or risky activities, is critical. These protections can also cover roads, chemical use and spraying, water sources, fences, gates and farm biosecurity protocols.

4. Make Good and Rehabilitation

At the end of the project’s life – or if the project fails early – you need certainty that the land will be returned to a usable condition. Option and Lease agreements should include clear obligations for decommissioning infrastructure, removing waste, and rehabilitating the land. Where appropriate, it’s also important to seek financial security (such as a security bond or bank guarantees) to ensure the developer has funds set aside to meet these obligations, even if they become insolvent.

5. Indemnities and Insurance

Renewable energy projects carry risks, including fire, contamination, third-party injury and property damage. It’s crucial that the developer assumes responsibility for those risks and holds appropriate insurance throughout the project, including an assurance that your insurance policies will remain unaffected. Negotiating robust indemnity and insurance clauses to protect you, your business, employees, family members and associated third parties is key, in order to ensure that if something goes wrong, you’re not left footing the bill.

6. Biosecurity Measures

The arrival of contractors and machinery on your land introduces biosecurity risks such as weed infestation, disease, chemical contamination and soil disturbance. Of paramount importance is ensuring that developers commit to strict biosecurity plans, including vehicle wash-down procedures, movement protocols and pest and chemical management. This is especially important for land used for livestock or cropping operations, where contamination could have significant economic consequences.

7. Tax and Duty

The structure of your agreement can have major tax implications – especially where payments are made upfront or capital improvements are made to your land. It is important to work collaboratively with your financial advisors to ensure the lease or licence is structured efficiently and does not inadvertently trigger GST, income tax liabilities, or transfer duty. In some cases, it may be desirable to restructure land ownership or implement succession planning measures at the same time.

Final Thoughts

Queensland’s renewable energy boom presents real opportunities for rural landholders to generate long-term passive income and increase the value of their land. But these agreements are complex, and the stakes are high. By engaging experienced legal advisors early, keeping your options open, and considering group strategies, landholder’s can position themselves to secure a deal that truly benefits their business and their family for generations.

If you’ve been approached by a renewable energy developer, or want to explore what opportunities may be available on your land, contact the Thynne + Macartney Agriculture team today.

How Thynne + Macartney Can Help?

With over 132 years’ experience supporting Queensland’s landholders, Thynne + Macartney’s Agriculture team understands the complexities of primary production, succession, and land use. With offices in Brisbane and Toowoomba, we act only for landholders – not renewable project developers.

Our team offers a uniquely integrated team of agriculture, energy and resources and property lawyers with a genuine understanding of Queensland’s legal and commercial landscape. Our extensive experience includes advising on solar, wind, battery and hydrogen projects, transmission and pipeline easements, coal seam gas, mining and access arrangements across a wide range of agricultural properties.

Our team works closely with you to: