Solar Land Leasing | New York

A solar land lease is a fantastic way for New York landowners to generate passive income from their unused land. Once you get a willing solar developer interested—and there are plenty of those around—you can make some extra money and help the environment, with very little effort on your part. Before you sign up, however, read on to learn how much you could make, whether or not your land is suitable, and what to look out for when signing a solar land lease.

How Much Money Can a Solar Farm Make?

A number of factors come into play when determining the rates of a solar land lease in New York. We’ve highlighted some of the key factors below but, of course, different projects will have their own unique variables determining earning potential.

• Land Size: As a general rule of thumb, more land means greater potential for earnings. More land houses more panels, which generate a greater amount of energy, so it makes sense that bigger parcels of land have higher earning potential.

• Sunlight: Annual exposure to sunlight is a massive factor for prospective solar developers. Shadows are a negative, but if your land gets enough sunlight then you’re in good shape.

• Soil Quality: Like a more traditional agricultural farm, the quality of the soil is important for solar farms. You want stable, clear land with little debris and few obstructions. 

• The Lease: This is the final part of the puzzle for both the landowner and the solar developer when it comes to the earning potential of a solar farm. The lease will take all these factors, and likely a few more as well, into account to determine the final rate of the solar land lease.

How to Know if Your Land is Right for a Solar Farm

A solar farm is a great way for New York landowners to generate some extra revenue for minimal effort, but how do you know if your land is suitable? Here are some key features.

• Three-Phase Power: This is an essential component for any solar farm. Read our blog post to learn what this means and how to identify three-phase power at your property.

• Minimum Size: Of course, solar farms will vary in size, but there is generally a minimum requirement—at least 10 acres of flat, clear land with minimal wetlands. Roughly 100 square feet is capable of hosting 100 kW of solar panels.

• Sun Exposure: Adequate exposure to sunlight is absolutely necessary to generate sufficient power and make the whole project worthwhile. It may be possible to remove certain obstructions and eliminate shadows.

What to Know When Signing a Solar Land Lease

If you’re a landowner in New York, you’re well aware that your land is extremely valuable. With this in mind, it’s important to do your research before committing to a solar land lease. However, if you are looking to generate some extra revenue, consider these points.

• Solar Panels: This might seem like an incredibly obvious point, but make sure you do your research on solar energy and how it works. You’ve probably seen solar panels on homes or businesses in your area and when it comes to a solar farm, the idea is pretty much the same, just on a bigger scale.

• Time Commitment: A solar land lease is a long-term commitment. This is necessary in order to generate the most revenue and really get the most out of the project for both the developer and the landowner. The lease will likely last over twenty years, so be sure to do your research and pick a trustworthy solar developer that you’re happy to stick with for the long-term.

• Taxation: With a solar land lease you’ll be generating lots of new revenue and, as with other kinds of income, this will be subject to certain taxes. The taxes associated with a solar farm will likely differ from those arising from a traditional agricultural farm, so it’s important to seek the advice of a qualified tax professional before making a decision, or signing a solar land lease.

Want to Learn More About Solar Land Leasing?

If you’re still interested in making some extra revenue, and you think you’ve got suitable land for a solar farm, then get in touch with YSG Solar. Just fill out the form on this page and we’ll send you a sample solar land lease. This will give an excellent insight into how a solar farm works and what’s involved in the contract. Then, if you want to learn more, or you have any further questions about the whole process, reach out to YSG Solar directly—call us at 212.389.9215 or send us an email.

Don’t forget to follow YSG Solar on Twitter, Instagram, Facebook + LinkedIn for all the latest from the world of solar power and renewable energy.

By Shane Croghan

Sources:

https://strategicsolargroup.com/what-is-the-average-solar-farm-lease-rate/

http://www.solarmango.com/ask/2015/10/23/what-type-of-land-is-suitable-for-solar-farm/

https://news.energysage.com/solar-farms-start-one/