Why Solar Should be the Future of Your Land

By: Pivot Energy

August 8 2022

If you’re a landowner, you’ve likely been exploring ways to maximize your land’s economic and environmental potential. Perhaps you’ve already looked into leasing your property for solar, but you need more information about the process and its benefits for you and your family. In this article, we explain why leasing your land for solar can be an excellent choice for your pocketbook and the environment – and a thoughtful investment for future generations.

Create a predictable long-term income stream 

A solar lease provides you with a steady source of income for decades while protecting you from the variability and unpredictability that often comes with agricultural and other applications. When you lease your property to a solar developer, you enter into a contract that guarantees regular payments for the duration of the lease period, regardless of soil quality, access to water, and seasonal weather patterns. This is a great way to earn income while ensuring that your land can be passed down to the next generation – a process known as “land banking.” 

For many property owners, a solar lease is the most lucrative and reliable way to profit from your land while maintaining long-term ownership. Site income varies by land size and location. Larger acreages typically come with a lower $/acre lease rate. For a large solar farm (50 – 300+ acres) in a rural location, lease rates could begin around $250/acre/year. As the solar farm footprint gets smaller and closer to urban centers, the lease rate could exceed $1,000/ac/yr. No two sites will have the same characteristics, and each scenario must be evaluated by a qualified professional to determine an appropriate and competitive lease rate.

Enjoy hands-off development and maintenance

Leasing your land for a solar development is a great way to boost passive income while simultaneously reducing your labor expenditure. Throughout the duration of your lease, your solar developer assumes all responsibilities associated with financing and maintaining the site. You don’t need to worry about anything; your developer will handle all of the construction of the system and any ongoing maintenance of the site. As the landowner, you can simply sit back and watch the rent roll in. 

At the end of the lease, the developer will return your property to “ready-to-plant” or “ready-to-develop” condition. This ensures that you aren’t left with a useless plot of land after your lease expires. Your land will be ready for whatever you decide to do with it next! 

Keep your land easy on the eyes and ears

If you were to lease your land for an alternative purpose like a retail space, agriculture, or a parking lot, just think of all the traffic and noise that could come with it. A solar lease helps you profit from your land while avoiding those annoying externalities.  

Despite common misconceptions about solar systems, the reality is that solar makes a great neighbor. It takes as little as two months for a system to be constructed, all while creating minimal disruptions to you and your community. Once it is operational, the system produces no emissions, no noise, and doesn't bring additional traffic or light pollution to your neighborhood. What’s more, your neat rows of solar panels will be low profile, so your neighbors can continue to enjoy the beautiful view outside their windows. 

Support a healthy environment

Did you know that solar panels produce zero greenhouse gas emissions? This means that while you’re making money on your solar lease, you are also contributing to cleaner air that benefits the health and wellbeing of your community. By simply leasing your property for clean, renewable energy production, you are making a difference by supporting a sustainable world. 

Choose solar with a trusted partner

The details of a solar land lease can seem unfamiliar and intimidating, so a reliable, experienced solar developer like Pivot Energy can make all the difference in the leasing process. The best solar developer partners offer transparent communication, clear resources, and ensure that the landowner is comfortable with all aspects of the timeline and payment structure before moving forward. Pivot Energy’s team of experienced solar developers is happy to sit down and discuss your goals with you to ensure that you are maximizing your land’s economic and environmental potential while keeping it available for future generations to come. 

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Together, solar and storage offer the unique ability to lower both demand and energy portions of a customer’s electricity bill.