Earn Significant Income from Wind Turbines

Earn Significant Income from Wind Turbines

ARE WIND TURBINES AN OPTION FOR MORE INCOME FROM YOUR LAND?

Are you collecting as much money as you can for your property? Good chance you’re NOT. In this issue of the LandGate Blog, I want to answer some of the questions we are getting about wind farms, wind turbines and how much you can make by leasing your property to companies trying to meet renewable energy targets.

Wind turbines can provide a new source of income to landowners without interfering with farming and ranch operations.

Do you know where the wind blows, the wind direction and the average wind speed? LandGate does.  If the average wind speed on your property is high enough, there is a good chance LandGate can get you a steady stream of income. As an example, the map below shows you the average wind speed and direction for the past 12 months between Oklahoma City, OK and Little Rock, AR. We have gathered wind data for the entire US. So go to LandGate.com and locate your property.

Who builds wind farms? There are a lot of companies building wind farms. But your initial contact will likely be with a smooth talking landman. That landman may try to lease your property for as little as possible, then flip your lease to a wind farm developer and make a profit. That profit should be yours! LandGate can market your property to the developers directly and get you the best price.

How much should you expect to be paid to lease your property? There are a lot of factors that go into what you will be paid, such as:

  • How large is your property? The more property you have, the more turbines they can install. The more turbines they can install, the more you will be paid.
  • Is your property located near roads constructed well enough to move large equipment like cranes and bulldozers? If so, you will be paid more.
  • You will also be paid more if your property is close to a substation. What is a Substation?

In many cases, landowners are asked to sign an Option Agreement, where they could be paid up to $100/acre.  The Option Agreement would give the company an exclusive right for 2-3 years to enter into a more formal agreement if the company can secure similar rights to enough land to build a wind farm. If the company then decides to move into the construction phase, then the landowner would negotiate a formal agreement.

In negotiating a formal lease agreement, the landowner would receive a combination of (1) an upfront signing bonus, (2) an annual payment per turbine and/or (3) an annual royalty payment based on the megawatts generated from the property. The payments will vary based on the number of turbines installed on the property. On average, a smaller single wind turbine lease could be valued at around $8,000/year with a larger turbine bringing between $50,000 to $80,000/year. 

Is my property only valuable if it is large? Not necessarily. A wind farm covers much more than the actual turbines. It requires a lengthy and complex construction project. Landowners are also paid for access across their land, use of their roads and sites to store construction materials, and temporary construction buildings.

How long will the wind turbines be on my land? A well-installed and high-quality wind turbine could last between 20 and 30 years.

How many wind turbines have been installed in the US?  Over 63,000. Check out this wind turbine map you can also find at LandGate.com.

The demand for land to install wind farms will continue to grow.  So give us a shout if you have any questions or if you’d like to talk about leasing your property. You can call us at 855-867-3876 or contact us through our site

Dan_McCue

Article by Dan McCue, VP of Land, LandGate

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