What you should know about leasing your land to a solar developer

– My name is Charles Fox and I'm the Vice President
of Sales and Marketing. – And I'm Warren Miller,
the Director of Sales and Marketing here at
Paradise Energy Solutions. – So today we're going
to talk about a topic that we get asked a lot and that is, should I lease
my land out to a developer for solar. (upbeat music plays) So Warren, when you get
asked that question, what advice should we be giving? – Yeah, it's an excellent question. And it really depends on
what your objectives are. If your objective is to use your land if you're growing crops or, and you don't use a lot of electricity and you have a lot of
available land space, it might make sense to you. However, if you're using
a lot of electricity where you're, at your location
and you're paying taxes then owning the solar probably
makes a little more sense.

So I'd say it depends on
what your objectives are. – So Warren, typically
when there's a land lease it means that you do not
own the solar equipment. You don't get to benefit
from the electric production. – No, you get to benefit
as being a landlord. So your benefit is you're
going to receive rent payments or lease payments from the developer. They're going to lease your land from you. They're going to develop
a solar array there and the developer will
sell the electricity. The benefit to you as the landowner is you get to lease your land
and receive payments for it on a consistent basis for 20 or 30 years.

– So the misconception could be that, hey if they put this large
solar array in one of my fields, you know, acres and acres
of solar, that I get to, you know, I don't have any
electric bill after a while. A little bit like these gas leases, they'd put gas on then you get free gas for the rest of your life. Is that the same scenario? – No, and so, if you're
leasing your land for solar you do not get to benefit from the solar or receive any financial
benefit from the solar itself.

The financial benefit you receive
is from leasing your land. So, one thing to think about
is typically those land leases are for a long period of
time, 20, 25, 30 years. So do you want to tie up your
land for that amount of time? You know, what, what usage
do you see down the road? Do you ever want to expand? Because it's going to be limiting on what you can do with
that piece of property. – Sure. And typically land leases are, you need to have a lot of
land available to do it. They're large scale
utility size solar farms that are going on your land.

It's going to require the utility company to come and put new
infrastructure on your property. Maybe new transformers
or utility poles as well. And so the question is also, what is your land going to look like at the end of the 25 year period? Who's going to remove the solar and what will your property look like at the end of that lease term? – So if you've got a solicitation
to lease out your land, one thing to think about is, if you're not close to substation and you don't have more
than probably 20 to 30 acres available, you're probably
not a great candidate. Even for that, even though
he may have been solicited because they were blanketing farmers, landowners with this
type of a solicitation. – Absolutely. And also be prepared to face
some community opposition to a large solar array
from your local neighbors. – Yep, very good. Well, thank you, Warren. Hopefully you found this video helpful. (upbeat music plays).

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