Solar Farm Land Lease Rates Texas

Crops come and go in a year.

Solar farm land lease rates texas.

The popularity of solar leases has increased significantly in the last year. Companies are advertising in farm magazines in an attempt to coerce landowners to sign up their land for solar. Opportunities exist to make major income from solar leases as companies advertise lease rates of 800 to 1 200 per acre annually. Based on this landowners evaluating solar leases should usually assume the lease payment will be the only income for the property and negotiate accordingly.

4 see appendix a solar lease template pg. We handle everything from assessing your site and providing lease rates to permitting environmental studies and interconnection. Essentially belltown power texas would become a tenant on your property. The same is often not true for solar leases.

Lease rates appear very enticing particularly when commodity prices are low but landowners should seek advice from straightforward practical minded legal counsel to minimize unintended consequences and avoid a deal that. Not so with a long term solar lease. Solar farm land lease rates in the right locations solar is one of the most profitable uses of rural land. Often a solar farm requires numerous continuously placed panels that would prevent other uses to be made of the surface of the land.

I think my option will bring in a higher than average rent for a solar farm but it came with a price. Solar leases aren t overly complicated. Landowners can earn long term lease income for each acre of land that is available for solar farm projects often through community solar programs. However pinning down an exact figure of what land should rent for can be a challenge for landowners because of the wide range of data found on the internet.

Major elements of the texas solar energy lease the following is a brief review of the major elements of texas solar leases. Cultural land to lease to build solar projects. The benefit for us is we can develop and construct a solar farm that produces clean renewable energy that we sell to an end user. I think there has to be a different consideration for farm land leased for solar versus farmland leased for crops.

The benefit to you is the rent you collect for the use of your land. How are solar farm land lease rates determined. 5 ten important issues to consider for a balanced marketable and financeable greenfield solar ground lease mercer thompson llc sept. Determining the value of a solar farm lease rates usually comes down to a two step process consisting of an evaluation of the land itself and the actual lease negotiation.

As stamford texas attorney james decker explained we re still early in the era of solar energy development in texas.