Earn Income from Wind Turbines on Your Land

Earn Income from Wind Turbines on Your Land

Are you collecting as much money as you can for your property? There is a good chance you’re NOT. Let’s address some of the questions we hear from landowners about wind farms, wind turbines and how much you can make by leasing your property’s wind rights to companies trying to meet renewable energy targets.

Leasing land for 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. 

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Wind speed from Oklahoma City to Little Rock from Landgate.com
Wind speed from Oklahoma City, OK to Little Rock, AK from Landgate.com

Who builds wind farms? There are a lot of companies building wind farms. Before they can install wind turbines on your property, they need to lease your property rights. The initial contact might be with a landman that wants 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 directly to the developers and get you the best price.

How much should you expect to be paid to lease your property for wind power? 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 wind 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?
  • You will also be paid more if your property is close to transmission lines and/or a substation.

In many cases, landowners are asked to sign an Option Agreement, where they could be paid between $50 and $200/acre/year. The Option Agreement would give the company an exclusive right for 2-5 years to enter into a more formal wind farm lease agreement. The developer may need this option period to secure additional leases, permits or funding. If the company decides to move into the construction phase, then the landowner would negotiate a formal lease 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 wind 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.

How much land is needed for wind turbines? A property does not have to be large to be valuable. 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, depending on environmental factors and maintenance.

How many wind turbines have been installed in the US? Over 70,000. You can also find these wind turbines and where they are located on our website.

Wind turbines around Oklahoma City, OK from Landgate.com
Wind turbines around Oklahoma City, OK from Landgate.com

The demand for land to install wind turbines and create wind farms will continue to grow. Reach out to LandGate’s land experts if you have any questions or if you’d like to talk about leasing your property.

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