Thursday, November 24, 2022

How Much Do Solar Companies Pay To Lease Land

What Our Landowners Are Saying

Earn Money Hosting A Solar Farm On Your Vacant Land.

If I was any farmer that wanted to sign up I’d call Greg. The work he’s done here …he’s been a great help.

Bruce SNew York State Farmer

OYA was upfront and clear with their intentions and what it would take to get to a finish line.

Mark H.Minnesota Landowner

OYA successfully navigated some complicated land-related issues and worked hard in everyone’s interest to get our project built. I couldn’t be happier that we finally got there.

David E.Minnesota Landowner

Lease Your Land To A Solar Company

OYA Solar offers competitive solar land leases to farmers and other landowners to develop solar projects. It is a great opportunity for landowners to generate stable income for 25+ years at a premium. With a local solar project, the community also benefits from more local jobs, discounted energy and a healthier, cleaner environment.

What Is A Solar Farm

Before we dive into solar farm lease rates, lets clarify what we mean by the term solar farm. Generally speaking, a solar farm is a large-scale solar PV project which generates energy and then sends that energy to the grid for distribution. Solar farms can serve many purposes. They may be used for residential community solar projects, or on a utility-scale basis. As the demand for renewable energy grows, solar developers are seeking suitable land to house these large-scale projectsand this is where landowners come in.

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How To Get A Solar Farm On Your Land

If youre a commercial land owner with some unused land, you may wonder what to do with it. Have you considered leasing it for solar farm usage? Leasing your land for a solar panel farm is a great way to use your open land while giving back to the environment. Lets explore your solar options so you can select the right type of renewable energy solar solution for your land.

Homeowners Trapped By 25

Lease Land for Solar Farm

Householders who lease their roofs to power firms find it hard or costly to move home

It seemed a win-win situation until recently, when she needed to sell the house. Her buyers mortgage application was refused because of the lease agreement, which had effectively signed over a large part of the roof to the solar company.

A clause in the lease allowed us to buy out the panels for a fee to compensate the company for the loss of their FITs, she says. We were prepared to do it to be able to sell our house and move on with our lives, but the company had passed the management of the panels on to an agent, who seemed reluctant to let us proceed.

Eventually, after the Observer intervened, Griffiths was allowed to buy the panels for £20,500, an uncosted sum that she was told was non-negotiable. Not only was this nearly double the price shed have paid to install the system herself, but she had also missed out on nearly eight years of FITs worth, around £7,300. All in all, the free system has left her around £16,000 out of pocket.

I am retired with MS and need to sell my house, but the buyer is refusing to go ahead unless I have the panels removed

The government introduced the generous incentives in 2010. The FITs, funded by a levy on all energy bills, have encouraged 800,000 households to go solar, but they have also spawned a multitude of startups that have exploited homeowners.

* All names have been changed

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Some Farmers Are Using Sheep Instead Of Landscapers To Maintain Solar Sites And It’s Paying Off

  • Susan Schoenian, University of Maryland Extension

Karine Vachon, senior director of communications for Innergex, said the size and scope of the area being developed arent fully defined, and discussions with landowners are ongoing and confidential. Vachon added the earliest that operations on the solar farm would commence would be the end of 2023, and the company has yet to apply for any permits from the township.

We are long-term owners and operators of our projects and strive to have an open dialogue with the communities where we operate our generation facilities through websites, open houses and other communication tools, Vachon said. We value transparency and respect.

Innergex isnt the first corporation with an interest in constructing a solar farm in Lurgan Township. In 2019, Penn State partnered with Lightsource BP to construct a solar farm that includes more than 100 acres in the township. Penn State purchases the energy produced by the project, and leases are for 25 years.

Robert Boyd, chairman of the Lurgan Township board of supervisors, said the existing solar farm doesnt produce any noise, is hardly noticeable because its concealed behind a fence, hasnt resulted in an increase in truck traffic, and has not generated any complaints from neighbors.

Because the township doesnt have a zoning ordinance, Boyd said, the only thing required from such projects is a land-use permit and a bond.

Wind Turbine Lease Rates How Valuable Is Your Wind Farm Lease

Renewable energy is on the rise in the United States, and as of 2016, nearly 15% of all domestically produced electricity came from renewable sources, such as hydroelectric, solar, and wind.Of these sources of renewable energy, wind turbines have the potential to become the largest contributor in the quest of reducing carbon emissions from reducing our reliance on the use of fossil fuels.In the first quarter of 2017 alone, the American Wind Energy Association reported that a new wind turbine was installed in the U.S every two and a half hours, and as it stands now, the U.S is already one of the worlds leading wind energy producers, second only to the European Union and China.This rapid expansion of wind farming in the U.S is creating many financial opportunities for property owners to convert their land into a high-value, money making asset since energy developers need all the land they can get for their wind farming projects.As of today, U.S wind farms are paying a total of $222 million dollars to property owners across the country, and this number is poised to grow exponentially over the coming years.In this article, we will cover everything there is to know about wind turbine lease rates, how they are valued, and how Landmark Dividend can help property owners receive the full worth of their wind farm lease with a ground lease buyout.

Wind Energy Basics: What is a Wind Turbine Lease?

Why Wind Farms?

How Do I Obtain a Wind Farm Lease?

What Makes for a Good Wind Farm Site?

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Watch For Prohibitions On The Use Of Other Properties

Solar lease agreements sometimes require that the landowner not construct anything that could impede the sunlight flowing to the solar project. This restriction could affect not only the land where the solar panels are located, but also neighboring land owned by the landowner.

For example, some solar leases prohibit crop dusting in the area of the solar farm because it leaves a film on the panel that reduces power efficiency and must be cleaned off. The particulates in the film can also degrade the panels.

Carefully consider whether these types of prohibitions could be a problem for your operation.

Where Your Property Is Located

Lease Vs Buy Solar – What Are the Pros & Cons?

Solar developers are not equally interested in developing projects everywhere in the United States. There are several reasons for this. At the state level, these include:

  • RPS Some states have enacted a Renewable Portfolio Standard . These mandate that a minimum percentage of a states electricity come from renewable sources like solar. This is often a catalyst for utilities in those states to buy solar, which drives developer interest.
  • Energy demand Less populated states have less demand for electricity, and may not need additional energy generation capacity.
  • Competing energy generation sources Some states have other forms of inexpensive energy generation that make solar less attractive relative to those alternatives.
  • Sunshine Some northern states are simply not sunny enough year-round to make solar projects compelling relative to other energy sources.
  • Tax incentives Some states provide lucrative tax incentives for solar projects, while others do not.

At a regional and county level, the major reasons include:

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Leasing Your Land For A Utility Energy Storage System

Solar land leasing, energy storage systems, utility-scale solarif youve read the YSG Solar blog in the past, these are all topics that will be familiar to you. Weve discussed the potential of solar land leasing, explained the term utility-scale solar, and covered all things energy storage, from cost and incentives to state & federal policy. Now, its time to bring all these topics together and discuss leasing your land for a utility-scale energy storage system.

Utility-Scale Energy Storage

The implementation of energy storage alongside renewable energy systems has become increasingly popular in recent times, thanks to improved incentives and technology. Its not just homes and businesses that can benefit from energy storage, howeverbattery systems can be scaled up to benefit the power grid and take the pressure off utilities. Utility-scale energy storage systems are an efficient, environmentally friendly way to store and deliver energy.

Benefits of Utility-Scale Energy Storage

These large-scale energy storage systems can save time, cut costs, and reduce harmful carbon emissions. Batteries are a potential alternative to more conventional grid infrastructure like power lines, easing the strain on the utility grid. Electric vehicles, another increasingly popular piece of green technology, can be integrated alongside an energy storage system as well.

Landowners

How Does A Solar Land Lease Work

A solar land lease is generally a long-term agreement, somewhere in the region of twenty-five years, and payments are made annually on a per-acre basis. The payment rate will be agreed in the contract between the landowner and developer and it should be a fair price for both parties. As solar energy generation is consistent and predictable over time, fixed, per acre rental rates are the most common payment structure. This allows for a reliable revenue projection over the course of the lease period, and annual rent escalation is usually a part of the lease agreement, with rent escalation rates commonly between 1.5% and 2.5%.

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So What Is Your Land Worth

The only way to know for sure is to have a solar developer evaluate it. Start by submitting this form about your property. If your land is in a region developers are interested in for some of the reasons outlined above and it has sufficient acreage, they will assess it for interconnection and other factors. Assuming it meets their evaluation criteria, they will contact you and can begin discussions about lease rates.

Are You A Landowner

Solar Farm Land Lease: Generate Consistent Income

Do you want to take advantage of the solar boom and harness the sun? Are you looking for a stable income that is insulated from market fluctuations associated with other land use? Now is a great opportunity to supplement your income by leasing or selling your land at competitive market prices.

How It Works FAQ Contact Form

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Selecting Land For Solar Farming

We seek out suitable land for solar farming and do a preliminary screening for proximity to substations and three-phase power lines, among numerous other factors. Although there is a preference for cleared, level land, we find creative, smart solutions to many challenging terrains.

Unlike brokers or land agents, we only offer leases for land we are committed to develop for a solar project and have thoroughly assessed. An OYA Origination Specialist will walk through the land lease or purchase agreements with you and in some cases, does a site visit.

Solar Lease Payments Explained

It is important for landowners to be aware of the different types of solar lease payment structures that can be offered by energy companies seeking to develop solar resources owned by private property owners. Some solar deal structures are more valuable than others to landowners. This is important because these agreements can sometimes last decades, so landowners need to ensure they understand the terms they are agreeing to.

The credit for the development of these types of lease agreements can largely be attributed to the oil and gas industrys long history of negotiating with large ranch owners and farmers who happen to settle upon valuable oil and gas reserves. The difficulty is the ability to negotiate terms that both value the risk, time, and capital being put forth by the energy company while meeting the private property owners price expectations.

In todays emerging renewable energy segments, LandGate is seeing a multitude of structures being used to lease and purchase properties for highly lucrative energy generation projects. As a landowner, you should always look to educate yourself and understand the corporation and the specific project they plan to use the land for before negotiating any terms. It is important to understand why the company needs your land, and how much income is expected to be generated. Depending on the risks associated with the venture, certain lease payment structures and clauses may be more appropriate than others.

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Solar Land Lease Vs Solar Ownership

If youre a farmer, the chances are you have been approached by solar companies proposing to lease your land for the purpose of installing solar panels. These propositions often appear lucrative at the onset however, they are frequently met with legal and tax implications, community resistance, and other unforeseen challenges. You have probably also been approached by solar companies selling you on the benefits of solar ownership. Which of these solar options, if any, make sense for you?

Producing Solar Power For Decades

120 Acre Solar Farm in Camilla, Georgia | GreenShortz

When leasing your land for solar, the project sends power directly into the grid, which often becomes a community solar project with discounted energy for local businesses and residents within the utilitys service region.

The landowner has no obligations to maintain the solar farm during its lifecycle, and the system will continue to operate with minimal interventions. On a semi-annual basis, the operator will visit to perform routine maintenance of the solar farm with no impact to the farmer.

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Land Use & Solar Projects

Because solar farms are passive land use, they share much in common with traditional agriculture. The solar projects do not generate emissions, have very limited exterior lighting, require only infrequent site visits from company personnel and are low to the ground. In short, solar farms are good neighbors and create far less impact on their surroundings than almost any other use. Solar farm lease rates are most competitive with traditional agricultural methods.

In more urban areas, solar farms must find land that is otherwise not prime for development. This land can have limited/challenging access or be located next to a more unpleasant use such as a wastewater treatment plant, manufacturing facility, or any other facility that generates significant noise, produces unpleasant odors, or creates other nuisances.

Questions You Should Ask Before Leasing Your Land For A Solar Farm

Solar Developer » 5 Questions You Should Ask Before Leasing Your Land for a Solar Farm

Know what questions to ask before leasing your land for a solar farm

If youre a farmer or landowner looking to lease your land for a solar farm, you may have a ton of questions about the process. This is completely normal, as most people dont have enough experience with the solar industry to make an informed decision to lease their land for a solar project.

Your go-to resource throughout the process will be the same one as is offering the lease, your solar developer, land agent or broker, which makes it all the more important you take the time to inform yourself before signing.

From the get-go, you should choose someone who is willing to work with you to make sure youre both on the same page, especially when youre signing a lease to land that you own.

To help you know what to discuss with your solar developer, weve provided the top five questions you should be asking before deciding to lease your land for a solar farm.

A quick side note: Solar Developer vs. Broker

There is a key difference between leasing land to a solar project developer versus a broker or land agent.

Solar project developers have a vested interest in getting the project completed and because of that, want to build a long-term relationship with you. In contrast, the brokers or land agents are just to looking to buy or lease your land with as little interaction as possible to just get the job done.

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Franklin County Farmer Wary Of Leasing Land For Solar

  • Tom Venesky, Northeast Pennsylvania Correspondent

Doug Ketner stands near a solar farm in Lurgan Township, Franklin County, Pa. Another solar project is being considered, and Ketner is concerned it will significantly alter the landscape of the rural community.

As a property owner in the small farming community of Lurgan Township, Doug Ketner admits that he has a lot to gain by leasing land to a proposed solar farm.

But he just cant overlook what could be lost.

Ketner owns an 80-acre farm where he raises grass-fed sheep, goats and produce. In November, Ketner said, he was contacted by a representative from Innergex, a developer of renewable energy projects based in Quebec, inquiring if he had an interest in leasing his land for use as a solar farm. Ketner said many other landowners in the Franklin County township have been contacted by Innergex, and hes heard lease offers as high as $1,400 per acre, or $17 per foot to run transmission lines through a property.

If you rent your farmland here, youll get $100-$150 an acre, so $1,400 sounds good to some people, but not to me, Ketner said. Youre still giving up your farm. You cant use it for anything else, but youll still have to pay taxes on it.

According to Ketner, the Innergex representative informed him that the company hopes to lease 1,500 acres in the township, and there is already enough interest from landowners to account for 1,200 acres.

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