Converting a part of your land into a solar farm is a practical step, especially with the growing renewable energy sector. Solar farms are now at the forefront of environmentally friendly practices that help reduce carbon footprint while providing landowners with a reliable income stream.
Suitability of Land for Solar Farm Conversion
While converting lands into solar farms is an appealing proposition, it only allows specific land types, including agricultural, industrial and brownfield sites. Developers provide a complete assessment to determine whether the land is suitable for solar projects. Solar farm development may require around five and 10 acres per megawatt generating capacity. Farms that produce less than five megawatts of power may use up to 50 acres of land.
Aside from the dimensions, the land needs to be:
- Graded and clear of vegetation
- Proximate to utility lines
- Accessible to roads
- Within high-demand location
- Available for shade-free acreage
How to Lease Land for a Solar Farm
If your land is suitable for a solar farm based on the initial considerations, you can set up a lease agreement. Here are the steps in leasing land for a solar farm:
1. Reach Out to Developers
It’s highly recommended that you contact multiple developers to find the best lease terms that fit your needs. Renting your land to a solar farm developer means you get paid by the acre. Since the range is broad, giving an average estimate can be challenging. Another consideration regarding the lease terms is the possibility of continued agricultural use. Discuss this term with the developers to check if solar farms align with your requests.
2. Complete a Site Visit
Developers evaluate the land’s suitability through a site visit. This step is crucial to determine the suitability of your land before solar farm installations. A site visit checks the regulatory considerations, from legal interests to water rights and transmission. If all relevant factors are cleared, developers set the terms of the lease agreement.
3. Accomplish the Pre-Lease Agreement
There are two forms of pre-lease agreements. A lease option offers the proposed lease agreement while giving the developer time to assess the project for a certain period and the acres of land to be leased. This form signifies agreed-upon payments by the developer. The Notice of Intent also outlines the lease terms and conditions.
4. Sign the Contract of Lease
After the pre-lease agreement and all terms and conditions are decided upon, you and the developer enter into a contract for the lease of land for solar development.
Considerations Before Leasing Land for a Solar Farm
During the lease agreement negotiations, discuss the terms and conditions, along with the following factors:
- Length of the lease
- Maintenance obligations
- Rent increase regulations
- Possibility of continued land use
- Tax responsibilities and legal land interests
- Cleanup and equipment removal at the end of the contract
Partner With SelectRow for Seamless Land Conversion to Solar Farms
SelectROW assists you in the process of how to lease your land for a solar farm. We handle full-spectrum land services, including landowner research, land and right-of-way acquisitions and negotiation. Accomplish an online form or contact us at 888-997-3532 to discuss more about your requests.
