Guest Blog:
How Can Landowners Benefit by Leasing Their Land for Solar Farms?

Mar 9, 2024by Guest Blogger

According to the International Energy Agency, renewable power capacity is expected to accelerate as fossil fuel prices rise. This is an excellent opportunity for landowners, who can lease their land for solar farms. The benefits of doing so are multiple. Let's find out more.

solar yard

What are the benefits of solar leases?

Here’s a detailed list of the benefits the landowner enjoys:

1. The amount quoted per acre returns for renting land in photovoltaic farm development is quite high and tends to exceed agricultural returns.

2. The landowner would have a source of income for 25 to 40 years, which would also increase with time.

3. The rents will keep up with the inflation throughout the lease time as the rents are index-linking.

4. The landowner is paid top-up between two figures whenever the mentioned percentage of the developer's revenue is more than the acreage-based rent.

5. You can still use the land to graze livestock or keep sheep or poultry, as solar farms have minimal ground-level impact.

6. You would also support the solar operators by allowing the livestock to graze the area to reduce site mowing costs and vegetation management.

7. The land under the panels would have a mix of grasses and wildflowers, increasing diversity by attracting bees and pollinators.

8. It has little visible impact, and there won't be any emissions or noise.

What should a landowner consider?

Check whether you have a grid connection or want to use your land for a solar farm. Solar developers usually prefer a solar site for purchase that is in the vicinity of surplus power in the local area. It would help if you also granted the developer an option over the land for 3 to 5 years. The developer uses this period to secure the planning permission required for the project. Before you sign the agreement, seek legal advice, and you can negotiate the amount or date.

What is a locked-in period?

When you sign a lease with a solar energy developer, you enter into an option called a "locked-in" period. During this time range, the land is locked, and you won't be able to use it for any other opportunities, as doing so can obstruct or affect the efficiency of the solar project.

What conditions are stated in the lease?

The primary condition stated in the lease for a solar project is that the land should get an uninterrupted passage of light to reach the solar panel. So, a landowner does not have much to do with the land or adjoining land, as it can restrain the flow of light to the solar planet. The lease would also include covenants of the adjoining land in the ownership so that the electric cables are not damaged.

Summing it up:

When you lease out the land, restrictions are implemented on farming, buildings developed for residential purposes, buildings should not increase in height, and if the land is granted for grazing to any third party, then it should be mentioned in the lease. It would help if you evacuated the land during the development stage. So, browse through for a detailed project overview.

About the Author:

guest blogger Preeth JethwaniPreeth Jethwani s an exceptional freelance content writer and blogger, well-known for her expertise on a variety of topics such as Health, Travel, Home improvement and more. To know more about her visit her personal site