5 Reasons a Landowner Should Lease Land to a Solar Farm

By: Pivot Energy

September 16 2019

5 Reasons a Landowner Should Lease Land to a Solar Farm

Content updated on April 28, 2023

As the world requires more sustainable energy sources, utility providers are increasingly incentivizing the development of renewable energy infrastructure within their service territory. Landowners across the US are realizing the numerous benefits of leasing land for solar farm development, which simultaneously generates a new steady source of income, supports local communities, and reduces carbon emissions. Although it may seem intimidating to sign a long-term lease, developing a solar farm on your property is often safer and more profitable for landowners than traditional methods of agriculture.

Are you considering leasing your land to a solar developer? Here we will explore the key reasons why landowners should consider taking advantage of this incredible opportunity:

1) Turn property into a land bank for future generations

As your land continues to appreciate, a solar lease will provide you with guaranteed payments throughout the project’s lifespan. This is an excellent way to generate additional income on a piece of land while keeping the property in your family for future generations – also known as “land banking”. The question remains: how much do solar farm developers pay to lease a plot of land?

Over the course of your lease, rent payments can amount to hundreds of thousands of dollars.

Once the lease term expires, the solar developer will remove all their equipment and return your property to either the same or better condition than it started.

2) Gain a reliable stream of income

Any honest solar company should tell you that if Walmart or a residential developer is interested in buying or leasing your land, a solar lease can not compete from a value perspective. However, a solar ground lease offers a more profitable and reliable income stream for farmland owners that have historically used their land for agriculture. Due to the solar farm land requirements, solar developers often prefer to build on land that is flat and cleared of any major obstacles.

You can expect rent payments to exceed agricultural or dormant land revenue.

Additionally, you will not have to worry about renegotiating a land lease or finding a new tenant farmer every few years. Finally, the value of your land will not be jeopardized by any changes to local or federal policies, global agricultural markets, or extreme weather events. Solar is an easy method of acquiring hands-free “mailbox money” for several decades.

renewable energy lease agreement

3) Generate income from otherwise unused land

One of the most obvious candidates for a solar site lease is a piece of dormant land.

Whether you do not own water rights or your land will not produce anything when it is farmed, a solar site lease can drastically increase the value of an otherwise dormant piece of land.

On top of the lease payments, most solar farm developers will also pay the taxes for the land they lease. As a result, you can turn an annual financial burden into an income-generating asset without paying for any site upgrades.

4) Continue being a good neighbor

You have likely heard numerous misconceptions about solar farms from sources that might not even know how they work. Despite the false rumors, solar projects are fantastic neighbors and generally preferred compared to other development opportunities.

Solar projects have a short construction period; afterward, they are unmanned facilities that generate no noise, no emissions, no lighting, and no traffic.

As an added bonus, developers will often further benefit your local community by paying for energy infrastructure upgrades, improving the reliability of your local grid without raising the consumer’s utility bill.

solar farm land owners

5) Earn money while making a difference

What you choose to do with your land is part of your legacy. While most people take pride in leaving a positive impact on their families and loved ones, many more people are beginning to consider how they can better serve their neighbors, community, and the world.

Leasing your land to a solar farm is a great way to do your part in helping the United States convert to a cleaner, renewable economy. A solar garden constructed on ten acres can offset the equivalent amount of CO2 as 2,950 acres of U.S. forests each year.

This is a fantastic way for a landowner to pass on a reliable income stream while being part of a cleaner future; it is a win-win for everyone.

Lease Land for Solar Farm

Whether you are interested in increasing revenue, land banking your property until more lucrative future development opportunities are available, or contributing to the paradigm shift to renewable energy, a solar ground lease is a fantastic option. Pivot Energy’s team of experienced solar developers evaluate sites daily and would be happy to assess your land’s potential.

If you are a landowner and think this might be a good opportunity for you, please reach out to us at Land@pivotenergy.net.

Pivot Energy

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At this time, we are seeking land with a minimum of 20 available acres for development. Fill out the form to provide us with your land information and our team will begin a free property analysis.