Solar Farm Lease Prices

The staff at your local conservation district or usda farm service agency offices might have a pulse on local cropland leasing rates.

Solar farm lease prices. Landlords might consider basing their rental rates on land values. Instead annual payment terms are usually defined in dollars per acre. The solar company may only end up leasing a portion of the property and then as a land owner you could be left with two small fields with a solar farm in the middle. It should not be surprising then that there would be big differences in solar farm lease prices throughout the u s.

Since agricultural land is a prime target for developers. Crops come and go in a year. The cost of land for 1 mw plant will therefore translate to 2 500 per month on average. 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.

On average 1 acre solar farm cost about 500 per month to lease in the united states. I think there has to be a different consideration for farm land leased for solar versus farmland leased for crops. Solar leases are long term usually at least 20 years initially with an option to renew for another 20 to 25 years. For example the solar farm land requirements for a 1 megawatt solar plant is around 5 acres.

It was a 51 acre parcel but only 31 acres will be utilized. I think my option will bring in a higher than average rent for a solar farm but it came with a price. 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. Installing a solar farm on farmland could cause the land to lose its current agricultural use value status since.

However there s a lot to take into consideration before entering into a solar lease with a developer and to help our readers better understand the nature of solar farm lease rates this article will discuss the importance of solar development in the u s how land for solar development is evaluated and how landmark dividend can help. Not so with a long term solar lease. Lease land for solar farm. A landowner who enters into a solar lease should expect to have solar panels on his or her farm for 40 to 50 years.

The most commonly asked question by landowners regarding solar farms is how much can i lease my land for. Even within states the variance of land prices can be large and mainly has nothing to do with solar farms but rather the more common uses of property. Others base lease rates on the landlord s carrying costs which would be different for town owned farmland than privately owned farmland. Commonly the price offered is lower in the development phase and higher during the operations phase.