SOLAR Farms

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We get about one phone call per week from a landowner who wants to build a solar farm.  My first question is: "Who is going to buy the power?" If there is a buyer out there who can pay $0.05 to $0.08 per kWh, then chances are, you might have a feasible project. 

LEASING

Landowners can lease acreage to a solar developer and diversify their income.  Community Solar Programs are increasing in popularity and provide an off-taker (or buyer) of the electricity that the solar owner to sell electricity into a program.  Typical lease rates are in the $1,000 to $1,500 per acre range, but $5,000 per acre is not out of the question with the right tax incentives and electricity rate.

Solar leases typically have an option phase lasting 2 to 5 years which allows a developer time to design, engineer, entitle and permit your project.  If successful, you can enter into a long term lease agreement of 20+ years and collect a steady lease payment paid through the sale of electricity produced by the solar farm

IDEAL LAND CHARACTERISTICS

Solar farms usually need a minimum of 10 acres, but ideally at 20-40 acres.  Proximity to a substation with capacity is important as well as an access road to the property for ongoing routine maintenance.

Ideal solar farm land does not require significant grading or site preparation (tree removal) and is not located in a wetland area.  In the simplest terms, the solar developer needs to run a wire to the nearest suitable electrical infrastructure (interconnection AKA "IX"), so the shorter the trenching, the less cost and the more valuable your land is.  If this trenching crosses through other parcels and different property owners, this also adds to the complexity of the deal.  Same thing goes for a road to your solar farm.  One more cost in the deal that impacts your lease value.

Combining battery storage with solar development is becoming more common. Battery storage rates per acre are generally higher than solar, but the project complexity increases.