In the latest episode of The American Landowner podcast, host Robert Dudley sits down with Craig Kaiser, President and Co-Founder of LandGate, to explore the intriguing world of solar leasing opportunities for landowners. As the demand for renewable energy continues to rise, this conversation sheds light on the benefits, challenges, and key considerations for landowners contemplating leasing their land for solar farms. The discussion not only highlights the potential financial advantages but also delves into the implications of land use, environmental impact, and long-term sustainability. Through informed decision-making, landowners can fully leverage the potential of solar leasing to enhance both their economic and environmental contributions. Join us as we recap this informative episode and uncover valuable insights that could help landowners make informed decisions about their properties in the evolving green energy landscape.
Introduction to Solar Leasing
Solar leases are long-term agreements between a landowner and a solar energy company. In these contracts, the property owner permits the solar developer to install and operate solar panels on their land. Typically, the developer sells the electricity generated back to the utility company. In return for granting land use, the landowner receives lease payments from the solar developer.
Benefits of Solar Leasing
The three primary benefits of solar leasing for landowners are revenue generation, maintaining land ownership, and contributing to clean energy production.
1) Revenue Generation
The biggest benefit of leasing land for solar farms is revenue generation. Landowners can generate a long-term, steady income stream from solar lease payments. Solar leases are typically paid on a per acre per year basis, without royalties. These payments typically range from $700-2,000 per acre per year.
Solar lease payments vary across the country and are determined by many different factors. The best way to determine what solar developers are willing to pay to lease your property is to put it onto the market and get as many eyes on your property as possible. By listing your property for lease on LandGate's competitive marketplace, you can expose your property to a wide network of high-intent solar developers actively searching for suitable properties for solar farms:
2) Maintain Land Ownership & Build Generational Wealth
When you lease your land for a solar farm, you can retain ownership of your property while earning income from it through lease payments paid by the solar developer. Additionally, land values are constantly appreciating. By leasing your land for solar energy, you can preserve your asset value while also generating additional income to pass on to future generations.
3) Produce Clean Energy
Leasing land for solar energy production contributes significantly to reducing carbon emissions and promoting environmental sustainability. This opportunity allows landowners to be part of the solution in addressing climate change and creating a healthier environment for future generations.
Solar Leasing Considerations for Landowners
While there are many benefits to leasing land for solar farms, it's important for landowners to consider whether or not this option is right for them due to the long-term nature of solar lease agreements. These include:
Site suitability: Not all land is suitable for solar development due to factors such as topography, soil quality, and proximity to electrical infrastructure. Property size is also an important consideration for determining whether or not your land qualifies for a solar farm, as most utility-scale solar developers typically look for properties above 40 acres. However, smaller properties, even those as small as 5 acres, can still be used for community solar farms. During the episode, Robert and Craig discuss site suitability for different types of solar farms in depth.
Agricultural impact: Leasing land for solar development may impact current or future agricultural practices on the property. However, agrovoltaics is a potential solution to this challenge. Agrovoltaics is the practice of combining agricultural practices, such as grazing, with solar panel installations.
Long-term land use planning: It's important to consider the long-term implications of leasing your land for solar energy production and how it may affect future plans for your property. Solar leases are long-term agreements, generally ranging from 20-40 years in length.
How to Connect With Solar Developers Looking for Land
LandGate aims to empower landowners by providing data and insights on the energy and resource potential of their properties, including for solar, wind, battery storage, and more. Landowners can get a free property report to learn about their property's potential to be leased for a solar farm and list their properties for lease for free on LandGate's marketplace to connect with a large network of solar developers actively looking for properties to lease across the country.
