June 1, 2020
For landowners across the United States, there’s a new cash crop—solar energy. Solar developers around the country are keen to develop large-scale projects and, of course, they need land to house these projects. This is where landowners come in.
Solar Farm Land Leasing
Solar developers require a minimum of 10 acres of land to construct a solar farm. The land should be in an area which receives a lot of sunlight annually and has minimal shading. For a 1 MW solar system (roughly enough energy to power 650 residential properties per day), you’re looking at somewhere in the vicinity of 3,000 - 4,000 individual solar panels. Given the scale of a solar farm, these projects can cost millions of dollars to construct. With a project of this size, landowners can find themselves in a potentially lucrative position—if they have the right parcel of land for a project.
Solar Farm Popularity
Solar farms are powering homes across the country. In particular, the following states have seen huge solar farm development in recent years:
California
Nevada
Massachusetts
New Jersey
North Carolina
Arizona
New York
New Mexico
Hawaii
Texas
Average Lease Rates For A Solar Farm
There is no set number which applies across the board. Solar lease rates, as well as the tax credits associated with large-scale solar projects, are extremely variable from state to state and also depend on a number of other factors. Things like proximity to three-phase power and proximity to a substation are important considerations for potential developers.
AGDAILY offers the following recent average rates, while stressing that “there are no cookie-cutter guarantees”, and these rates are purely intended as examples.
$500 - $4,000 per acre for a 10-acre solar farm, near a substation, outside an urban area.
The same size parcel of land, also near a substation, but in a rural area could fetch over $1,000 per acre.
For much larger pieces of land, over 100 acres, the per acre rent could end up somewhere between $300 - $500.
As you can see, per acre rates do vary quite a lot depending on a wide range of factors like substation proximity and geographic location. Some of the core factors influencing solar land lease rates include:
Size of Land Parcel: Of course, the amount of land involved in the lease will play a part in determining both the overall rate and the per acre rate on offer.
Annual Sunlight: The land should receive plenty of sunlight on an annual basis, with no significant obstructions which could cast shadows on the panels.
Proximity to Grid: As noted, proximity to a substation and three-phase power is a big plus for a developer.
Quality of Soil: Developers will be looking for flat, clear land with no obstructions or wetlands, making for a straightforward construction process.
New York Solar Land Leasing
New York State, in particular, has seen staggering growth in the solar farm sector—a whopping 575% over the last 4 years. New York’s ambitious solar capacity targets have led to this increased demand for land and resultant solar farm growth. With a target of 3 GW installed capacity by 2030, suitable land is more in demand than ever before. Developers like YSG Solar have been working with landowners to construct large-scale projects which are beneficial for all parties involved, providing consistent revenue for the landowner across a long-term lease period.
To lease your land for solar, contact YSG Solar today. YSG has been operating in the solar sector for over a decade and is vastly experienced in the construction of large-scale solar projects. Send us an email, or call at 212.389.9215 to get started.
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:
https://www.agdaily.com/insights/solar-power-farmers-opportunity/
http://www.solarmango.com/ask/2015/10/23/what-type-of-land-is-suitable-for-solar-farm/