RepoweringHub
Guide · Lease & Repowering

What happens to the lease contract in repowering?

In short: The repowering event is usually the most important moment for negotiation over the entire lease term. Either the old contract contains a repowering clause with an extension — or a new contract is drawn up. In both cases the rent generally rises significantly, because the new turbine generates a multiple of the old output.

Three typical starting positions

Contract situationConsequence in repowering
Repowering clause in the old contractContract extends automatically by 20–25 years, rent adjusts according to the agreed formula
Lease end coincides with EEG endRenegotiation — the strongest negotiating position for the landowner
Old contract continues, repowering plannedAddendum required (turbine type, number, rent methodology)

Rent mechanics in repowering

With a revenue-based rent (4 to 7 percent of the electricity revenue, the common standard), the rent rises roughly in proportion to the increase in yield. A 6 MW turbine instead of a 1.5 MW turbine means, depending on the site, roughly three to four times the annual revenue and thus rent. A rough estimate of the new yield is provided by the repowering yield calculator; recommended reading on the rent question itself: lease income.

Pool models as a fair solution within the park

In repowering, fewer but larger turbines are often built — the turbine locations shift. So that suddenly only one owner profits and others come away empty-handed, a land pool (Flächenpool) is the usual answer: all land owners in the park share the total rent according to their share of the area, including access roads and cabling. More background under lease & site acquisition.

Negotiating leverage for owners: repowering permits are site-bound — the project developer is dependent on the existing land. This is the best position to push through a revenue-based rent, a fair pool, and an inflation adjustment if that is missing from the old contract.

Frequently asked questions

Can I terminate the contract during repowering?

As a rule no, as long as the old contract is still running and the operator fulfils its obligations. But: repowering is practically not feasible without a mutually agreed contract amendment — that is your bargaining chip.

What if the repowering location shifts?

The usual approach is to bring all owners of the old locations into the new pool — even if the new turbine no longer stands exactly on their land. Without a pool, conflicts arise that can delay or prevent a repowering.

When should I seek legal advice?

Before signing any addendum or new contract. We do not provide individual legal advice (RDG, the German Legal Services Act), but on request we put you in touch with experienced specialist lawyers/notaries via the contact page.

Lease contract in repowering: three scenarios – repowering clause in the old contract extends automatically by 20-25 years, lease end at EEG end gives the strongest negotiating position for owners, an ongoing old contract requires an addendum. Revenue share of 4-7 percent of electricity revenue is standard, a new 6 MW turbine brings 3-4 times the yield compared with an old 1.5 MW turbine. Land pool model: all owners share the total rent according to their share of the area. Negotiating leverage: permits are site-bound

Lease contract in repowering – scenarios, rent mechanics and land pool model