July 16, 2020
Why are property owners leasing their land or empty lots for solar or energy storage farms?
Property owners in many states may own empty lots or land that is unused. Perhaps the use of the land has recently changed due to COVID-19.
The top 12 states for solar farm land leasing and battery energy storage leasing are:
California
Arizona
Oregon
Minnesota
Virginia
Maine
Vermont
New York
New Jersey
Massachusetts
Connecticut
Rhode Island
What land is good for standalone utility-scale energy storage systems?
Land that is near a substation and is zoned commercial or industrial is ideal. Empty lots or parcels may only need to be 0.5 acres to facilitate energy storage projects. This is compared to a minimum of 20 acres for a solar farm. Typically solar farms require 5 acres per 1 MWdc.
How can you make money from an empty lot?
By leasing out the land to a solar development company to construct a solar farm and sell power through a community solar program, or to the utility. YSG Solar has an energy marketing department that is constantly buying and selling electricity.
How can you reduce or eliminate property taxes?
Leasing your land to a solar developer may allow you to reduce or eliminate the property taxes on the parcel. YSG Solar will negotiate a property tax agreement with the local taxation authorities and will take responsibility for these costs when we lease your land or empty lot.
What zoning is required for solar farms?
This depends on the local land use laws. Properties zoned for industrial and manufacturing use are typically always allowed use. In certain regions, such as New York state for example, solar farms may be developed and constructed within residential and agriculture parcels.
What zoning is required for energy storage projects?
Energy storage projects should be located within industrial, manufacturing, agriculture, or residential zones. This will vary by each local jurisdiction. Certain areas, such as the Town of Brookhaven or the Town of Riverhead on Long Island, will not allow solar or energy storage projects to be developed on residential or agricultural properties. In this area of Long Island they are only allowed on industrial parcels. In certain cases YSG Solar may work with the local town to rezone the parcel in order to comply with local land use laws.
What about site clearing for solar farms or energy storage projects?
Having a cleared site is ideal for a solar farm. In certain areas it's required for the land to be fully cleared since the price at which we will sell electricity is so low that the parcel must have a very easy use for constructability. In regions such as Rhode Island or Massachusetts, YSG would handle clearing the land, and also re-plant smaller plants to help the environment.
How flat does my land need to be for a solar farm or energy storage project?
The land should not exceed 10 degrees. Flatter land is always better and makes construction easier.
Below are the top 3 land siting considerations for hosting/leasing an empty lot, unused roof space, or land, for a solar farm or energy storage project:
#1. Property is near an electrical substation. The closer the better, just like any other real estate deal. It's all about location, location and—you guessed it—location. Close to a substation that has 13.2 feeders and has a proper MVA capacity. YSG Solar has proprietary data on substations across North America. This allows us to forecast the probability of the project being viable.
#2. No environmental issues on the parcel that would prevent the property from having any sort of development. ESA Phase 1 should be completed to ensure that the property has no endangered species or other environmental issues.
#3. Allowed land use for planning and zoning. A clear path for permitting and land use is ideal for solar land development. YSG Solar has received letters from dozens of municipalities across the country whom we have helped to write their zoning laws. Certain municipalities may not have established zoning laws, so YSG’s team of attorneys will work with the community and local government to establish proper land use laws.
If you have unused land near a substation then you could be in a position to profit from a solar land lease. Send us an email, or call at 212.389.9215 to discuss the potential of your land, and learn a little more about the solar land leasing process.
YSG Solar is a project development vehicle responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.
Sources: