Lease Land For Solar Farm

February 3, 2023

Do I have enough land for a solar farm?

When it comes to solar farm land requirements, location is more important than the amount of land you have. Even if you only have a few acres, you still have a chance to generate income by leasing your land for a solar farm. Go to landgate.com, find your property and see how close you are to the nearest substation and transmission line. Then, you can claim ownership of your parcel to see the solar value of your property.

How long will a solar developer be on my property?

Once you sign the solar lease, or option to lease, there are generally four phases to a solar farm project:

Development Phase (sometimes referred to as the Option Period) – This could take anywhere from 1 to 5 years. It will include planning, permitting and regulatory matters. There is a possibility that during this phase, the operator could decide not to complete the project due to financial or regulatory permit reasons.
Construction Phase – This could last 2 to 4 months while they install the solar panels.
Operations Phase (sometimes referred to as the Production Phase) – This phase could last 20 to 30 years as they are not generating electricity
Decommissioning Phase – Unless they negotiate the right to extend the lease for another lengthy operations phase, the solar panels and supporting structures will be removed and the developer will work with you to restore the property to its original condition.

Will I still be able to farm and run cattle on my property if I lease it to a solar developer?

Usually, the solar developer will allow landowners to continue farming, running cattle or carrying out other surface activities on their land during the option or development period. If the solar developer elects to begin construction, then the surface owner will be restricted from surface activities that would interfere with construction, development, and the operations of the solar farm.

Can I lease the surface for solar if I already lease the minerals for oil and gas?

Yes, you can still lease your land for a solar farm if the minerals are already leased. The solar company will work with you and the operator to ensure that there are dedicated locations set aside for future drilling and development operations. The mineral estate is the dominant estate in most states (over the surface estate). That means that the mineral owner has the right to grant an oil and gas lease to an operator, who then has the right to use as much of the surface as is reasonably necessary to operate and produce oil and gas.

There will likely be a negotiation between the solar developer and the oil and gas company. The solar developer will not move forward on the project until they are certain there will be no interference from oil and gas operations.

Can I lease my surface for solar if someone else owns the mineral rights?

Yes, you can still lease your land for solar if someone else owns the minerals. As stated above, the mineral estate is the dominant estate. The solar developer will know if the minerals have been leased. If they have been leased, the developer will attempt to coordinate with the oil and gas company in an effort to ensure they can install solar panels on your land. If the minerals have not been leased, the solar developer will contact the mineral owner in hopes a deal can be made before minerals are ever leased.