Solar Farm Land Lease Rates Virginia

Determining the value of a solar farm lease rates usually comes down to a two step process consisting of an evaluation of the land itself and the actual lease negotiation.

Solar farm land lease rates virginia.

In some areas developers are paying more than 1 000 per acre per year for farmland that you may have been leasing for 250 per year. In the southeast the same size of the land will go for about 500 per acre per month. The question remains just how much do solar farms pay to lease land over the course of thirty years the rent will accumulate into the hundreds of thousands of dollars. Companies are advertising in farm magazines in an attempt to coerce landowners to sign up their land for solar.

The short answer is it depends but solar lease rates also called rents typically range from 250 to 2 000 per acre per year. However like all potential rewards risks also come. It was a 51 acre parcel but only 31 acres will be utilized. Opportunities exist to make major income from solar leases as companies advertise lease rates of 800 to 1 200 per acre annually.

How are solar farm land lease rates determined. In places like virginia and illinois large farms can fetch over 800 per acre although dependent on multiple factors. The solar farm won t make any noise or emit any pollution so it won t bother you your neighbors or any animals. Crops come and go in a year.

Once the lease term expires all solar equipment is removed and the property is returned to the owner in either a ready to plant or a ready to develop condition. This article looks at the factors that influence the rates a solar developer may offer for your land. I think my option will bring in a higher than average rent for a solar farm but it came with a price. What annual payment will i receive in exchange for granting the option to use this land for a solar farm what payments will be made prior to the start of any solar project.

Solar ground leases can last between 15 and 30 years with most lasting around 20 to 25 years which coincides with the useful life expectancy of solar pv panels. The solar developer or whoever ultimately owns the solar farm built on your property will maintain the farm at their expense. I think there has to be a different consideration for farm land leased for solar versus farmland leased for crops. However due diligence periods can last two to three years with very little money at risk.

The eye catching number is usually the above market lease rate. Solar farm land lease rates in the right locations solar is one of the most profitable uses of rural land. However pinning down an exact figure of what land should rent for can be a challenge for landowners because of the wide range of data found on the internet.