Solar developers pay anywhere from a few hundred dollars up to a few thousand dollars per acre leased. It varies considerably by the developer, the size of the project, the state the land is in, market competition in the area (from other solar developers as well as companies interested in your land for other uses), and several other factors. That’s why it’s helpful to use a service like Community Solar Authority that will solicit multiple developers with the goal of getting you the most for your land.
The length of construction depends on the size of the farm and what preparation needs to happen first on the site (such as clearing trees). As a ballpark, a small farm might require a month to build, whereas a very large site could take up to 18 months. Keep in mind that months or even years of development work needs to happen before construction commences.
Modern solar panels have an estimated useful life of up to 35 years, though contracts to sell solar energy typically don’t exceed 20 or 25 years, which is why the lease term is typically less. When the lease expires, the solar farm will either be decommissioned (everything removed from your land, at the operator’s expense) and the land returns to you, or, if you’re willing, the lease could be extended if there’s continued market demand for the power. In that case, the panels and other equipment might be upgraded but the basic shape of the solar farm probably wouldn’t change (though that depends somewhat on how much solar technology advances by then).
You will need to give notice to your lessee to plan on winding down their farming or ranching activities. Fortunately, it may be several months before they need to go.
Unfortunately, no. The solar farm must be connected to the electrical grid at a much higher voltage than your house uses.
The concepts are similar but renting generally involves shorter-term use, such as renting a house for a few months. Leases are long-term contracts. A solar land lease is typically for 20 or more years.
Most developers are willing to carve out a portion of a project area to accommodate structures that you want to remain there or continue to live in. Developers may also be willing, at their expense, to demolish and remove smaller structures that you no longer use, such as a barn or shed.
Yes, the entire facility will be fenced for security and liability purposes. If you have aesthetic concerns about the particular type of fence that will be used or its precise placement, discuss those concerns with the developer.
Once operational, solar farms do not use or produce any hazardous materials, gasses or chemicals that could harm your land. During construction, land impacts will be modest and temporary, mostly caused by the activity of trucks and construction equipment.
None at all! This is one of the best things about solar farms. In contrast to a coal or natural gas plant, solar farms release no emissions of any kind into the air, soil or water. They also don’t produce any noise or light, nor release radiation.
That’s a very rare occurrence. But, if a developer can’t finish construction, a bond posted by the developer and backed by a major financial institution will cover the expense of restoring your property to its original condition.
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Learn how Community Solar Authority advises land and commercial real estate owners on how to best monetize their assets by integrating solar in an effort to unlock hidden revenue streams. Listen to the podcast here.
Topics discussed include how this industry works, how to determine when this strategy makes sense for a vacant parcel of land, and, as usual, we will pick up a lot of other informative insights along the way.
There's an opportunity besides land flipping that can turn your property into an income-generating asset. You can get paid to let a solar developer install solar technology on your property. The best part is that you can make money going green without buying the system or having to maintain it..
Listen to the podcast here.