Solar Farm Land Lease Rates

Like we ve mentioned before rental fees are determined by how profitable the location will be once the solar project has been completed.

Solar farm land lease rates.

Solar ground leases can last between 15 and 30 years with most lasting around 20 to 25 years which coincides with the useful life expectancy of solar pv panels. 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. Solar lease rates are almost always based on both the quality and the quantity of the land assigned to the lease. Not so with a long term solar lease.

How are solar farm land lease rates determined. Solar farm land lease rates in the right locations solar is one of the most profitable uses of rural land. The most commonly asked question by landowners regarding solar farms is how much can i lease my land for. Companies are advertising in farm magazines in an attempt to coerce landowners to sign up their land for solar.

The popularity of solar leases has increased significantly in the last year. Opportunities exist to make major income from solar leases as companies advertise lease rates of 800 to 1 200 per acre annually. On average solar rental fees will fall somewhere around 700 to 3 000 an acre. What annual payment will i receive in exchange for granting the option to use this land for a solar farm what payments will be made prior to the start of any solar project.

The short answer is it depends but solar lease rates also called rents typically range from 250 to 2 000 per acre per year this article looks at the factors that influence the rates a solar developer may offer for your land. Depending on field access one of those smaller fields may no longer be accessible if a solar project is constructed in the middle of the existing large field. 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. A 10 acre farm might get a rent of 2000 per acre per month in an urban area while in rural areas the rent could be around 500 per acre per month.

Crops come and go in a year. I think there has to be a different consideration for farm land leased for solar versus farmland leased for crops. I think my option will bring in a higher than average rent for a solar farm but it came with a price.