Solar Farm Lease Rate

The short answer is it depends but solar lease rates also called rents typically range from 250 to 2 000 per acre per year this article looks at the factors that influence the rates a solar developer may offer for your land.

Solar farm lease rate.

A landowner who enters into a solar lease should expect to have solar panels on his or her farm for 40 to 50 years. Solar leases are long term usually at least 20 years initially with an option to renew for another 20 to 25 years. Not so with a long term solar lease. Your lease may preclude you from signing an oil and gas lease farmland rental timber agreements or other leases agreements.

The solar company may only end up leasing a portion of the property and then as a land owner you could be left with two small fields with a solar farm in the middle. Solar farm lease rates solar energy production is currently among the most lucrative ventures in america due to the rocketing demand for green energy. Solar farm land lease rates in the right locations solar is one of the most profitable uses of rural land. Restriction of future leases.

It was a 51 acre parcel but only 31 acres will be utilized. Installing a solar farm on farmland could cause the land to lose its current agricultural use value status since. We are also in the business of doing well while doing good to this end we make sure the value we hold in our partners is reflected in their compensation. I think my option will bring in a higher than average rent for a solar farm but it came with a price.

Instead annual payment terms are usually defined in dollars per acre. Determining the value of a solar farm lease rates usually comes down to a two step process consisting of an evaluation of the land itself and the actual lease negotiation. The most commonly asked question by landowners regarding solar farms is how much can i lease my land for. Commonly the price offered is lower in the development phase and higher during the operations phase.

Depending on field access one of those smaller fields may no longer be accessible if a solar project is constructed in the middle of the existing large field. Our solar farms are built to generate clean energy for decades to come and because of this we require a 40 year lease term. Royalties are not common in solar leases unlike oil and gas lease agreements it s uncommon for a solar lease agreement to set forth a royalty as the payment method. Based on a report by seia solar energy industries association solar plants offered the largest source of clean energy in 2016.

As you consider leasing your land for a solar farm there are many things to consider including. Crops come and go in a year. Converting farmland to solar this is a long term.