Seeking solar power generation cooperation agreement

What is a solar energy agreement?

For this guide, “solar energy agreement” will refer to the document or documents that work together to govern the relationship between the landowner and the party (or parties) constructing and operating the solar power project. These agreements are sometimes called “solar leases,” “solar easements,” or “solar power contracts.”

What if a developer offers a solar energy agreement?

When offered a solar energy agreement, remember attorneys working for the solar energy developer drafted the agreement. The attorneys’ professional obligation was to prepare an agreement that was as favorable as possible for their client – the developer, not you.

Can a landowner enter into a solar energy agreement?

Almost every solar energy agreement that contains an option will make the option “exclusive” which means the landowner cannot enter into any other agreement for solar development on the land (and perhaps any other form of energy development) during the option period.

Can a mortgage be a solar energy project?

As a result, creditors’ consent may be needed prior to execution of a solar energy agreement. If the land sought for a solar energy project is subject to a mortgage, consult with the lender to ensure the mortgage will not violate the solar energy agreement or to see if the mortgage can be modified to allow the agreement.

How long should a solar energy agreement be?

When you sit down to review a solar energy agreement the first thing you will likely notice is the length. Many solar energy agreements are 20 pages or longer, with some over 40 pages long, while an oil and gas lease may often be a two-page, “fill-in-the- blank” document. The difference?

Can a landowner control mineral development after a solar energy agreement?

If the landowner owns both the surface and minerals, they have the ability to control mineral development, and should make sure that any mineral leases entered after the solar energy agreement make sure mineral development will not interfere with the solar project (and the solar energy agreement will likely require as much).