Solar Land Lease, Solar Farm, Solar Panels, Landowner, YSG Solar
February 3, 2020

As the United States closes coal power plants throughout the country and moves away from natural gas, renewable energy sources like solar and wind power are in high demand.


Decentralization has been a common trend in the 21st century and this looks set to continue in 2020. One marker of this trend is the growth of utility-scale solar and community solar facilities, which are traditionally smaller in MW capacity than a conventional power plant. In addition, these facilities are constructed to provide energy on a distributed level.


Moving forward, in 2020 and beyond, solar land leasing and solar farms could be a viable option for landowners looking to generate some extra revenue. For those landowners considering selling or leasing land for solar, there are some big questions to consider. 


How long has the solar developer been in business?

Working with a reputable, experienced solar developer is crucial. You should seek out an established solar developer—like YSG Solar, which has been operating in the renewable energy field for over a decade. Utility-scale solar and energy storage projects can be very complex and require a significant amount of capital. This requires the solar development company to be properly funded and capable of managing all the risks associated with solar energy project development.


What happens if the solar company goes out of business during the lease term?

Solar companies will setup a decommissioning bond or an escrow that is put in place ahead of the solar land lease term. This establishes a mechanism for funds to be allocated towards an insurance product. This insurance product will cover the removal of all of the solar equipment at the end of the solar land lease term—including in a scenario where any party is defunct.


Should you lease your land for solar?

Solar land leasing requires a little bit of patience, but if you persist then the rewards could be great. If your land is sitting idle then a solar land lease could be a viable source of income. Be aware, however, that leasing your land for solar is a long-term commitment—with leases generally in the twenty to twenty-five year range. Income from a solar farm might not seem spectacular at first, but like many smart investments, it is consistent and repays the trust over time. If you work with a reputable solar developer and agree to a sensible long-term solar land lease, then you and your family could be seeing the dividends for decades to come. 


These are just some of the questions to keep in mind when thinking about a solar farm or solar land lease. For more in-depth discussion on the topic of selling or leasing land for a solar farm, check out our guide to solar land leasing, or learn how much money you could make from a solar farm

If you’re interested in leasing your land for a solar farm, contact YSG Solar today. We take care of the entire process from start to finish, making sure you generate extra income as soon as possible. Send us an email, or call at 212.389.9215.