April 7, 2020
As the solar industry has grown in recent years, solar farms have become more and more prevalent throughout New York and across the United States. Because solar farms have become more affordable and financially viable for developers, the demand for land to house solar farms has spiked. Likewise, landowners are beginning to understand the potential of solar land leasing. Solar land leases offer landowners a consistent, alternative revenue stream with minimal effort on their part. An established, reputable solar developer will streamline the entire process for the landowner, ensuring a profitable venture for all parties involved in the solar farm project. Is a solar land lease worth it for you? Let’s find out.
Should I Lease My Land for a Solar Farm?
Broadly speaking, a solar land lease is a great way for landowners to generate extra revenue with little effort. Of course, there are still a number of factors to consider before diving headfirst into a solar land lease.
Firstly, a solar land lease is a long-term commitment for developers and landowners alike. We’re talking about a lease agreement in the region of 20 to 25 years for the vast majority of solar farms. With the increased affordability and viability of land leases in recent years, there may be some shorter agreements on the market but, for the moment at least, these short-term agreements are the exception. If you’re committing to a solar land lease, you’re in it for the long haul.
Additionally, the installation process itself can also take some time to complete fully. As most solar farms are large-scale projects—relative to traditional rooftop and commercial solar installations at least—you should expect the installation process to take a number of years. However, if you have available land and enough patience for the initial set-up period, a solar land lease will provide a consistent revenue stream in the long term.
Is My Land Suitable for a Solar Land Lease?
Of course, the parcel of land in question also needs to be suitable for the project to be viable. The best way to determine the suitability of your land is to speak directly to a solar developer like YSG Solar. Every piece of land is unique so this is the only way to know for certain if your land is suitable for a solar farm or not. However, there are some common traits that most solar farms will have in common.
Size: Most solar developers will require at least ten acres of flat, clear land, with minimal wetlands, but some may go as low as five acres for certain projects. Generally speaking, bigger is better for solar farms, as more land means a bigger profit margin and more revenue for landowners.
Location: Proximity to a large town or city is usually a big plus for a prospective solar farm, as the generated energy can then be used locally, simplifying things for the developer.
Quality: As with a traditional agricultural farm, good quality land is a positive factor. Developers are seeking flat, clear, stable land with little debris and no major obstructions. Smaller pieces of vegetation can be removed, but this will increase the overall cost of the project.
Regulations: In some places, local laws and regulatory processes can prohibit the development of a solar farm regardless of the quality of the available land. Issues with construction permits or land limits can put an end to a project before it even gets started.
Infrastructure: Access to necessary infrastructure for operations & maintenance of the solar farm is also a big factor. In particular, proximity to a grid connection—three-phase power specifically—is vital. A good rule of thumb is to keep the project within 1 kilometer of existing distribution lines. On top of this, even simple things like road access are important for the development of a solar farm.
There are more factors which may come into play when determining the viability of a solar land lease, but these are some of the most important for the development of a solar farm.
Further Reading on New York Solar Land Leases
Over the years, we’ve covered solar land leases and solar farms extensively on the YSG Solar blog, so there’s plenty of information available on our website. Below, you’ll find links to just a few of our blog posts about solar farms and solar land leasing in New York.
If you’re interested in leasing your land for solar, contact YSG Solar today. YSG has been working in the solar sector for over a decade now and is vastly experienced in large-scale solar projects. Send us an email, or call at 212.389.9215 to learn more.
By Shane Croghan
Sources:
https://news.energysage.com/solar-farms-start-one/
http://www.solarmango.com/ask/2015/10/23/what-type-of-land-is-suitable-for-solar-farm/
https://strategicsolargroup.com/what-is-the-average-solar-farm-lease-rate/