Solar power generation leasing cooperation

What is a solar land lease?

A solar land lease is an agreement between a developer and a landowner where the landowner rents land to a developer to house photovoltaic solar arrays and develop solar energy. A solar land lease typically is a long-term agreement spanning twenty to forty years.

Should landowners negotiate a solar lease agreement?

On the other hand, landowners are usually motivated to limit the land affected by solar lease agreements to retain control over non-solar-related uses and leasing opportunities. Therefore, careful consideration and negotiation of the land subject to the lease agreement is crucial early in the process.

Can you lease land for solar development?

Landowners in some regions are being approached with exploratory offers to lease their land for solar development. Solar developers may be in contact with a number of landowners to see if there is sufficient interest and land area to develop a project.

Should landowners consider a solar energy lease?

For many landowners, any prior experience with resource development agreements may be in the form of oil and gas leases, and as a result, they try to apply those experiences to examining the solar energy lease. To some extent, this makes sense.

What makes a good solar land lease?

These include the reputation and stability of the solar developer or company, how many solar projects they have developed, whether they intend to own the solar project or sell it once it reaches construction, your own intentions for the land, and the lease rate. How long does a solar land lease typically last?

What is a pre-lease agreement for a solar farm?

Once a developer approves your land, they offer two possible pre-lease agreement options: Lease option: This option provides the lease terms but gives the developer time to decide whether to commit to a lease with you. For instance, they may need to determine how much land they will ultimately need for the solar farm.