Solar Panel Farm Lease

[sendit]

I have been contacted by a company that wants to lease some property for a solar panel farm. I dont have a clue on this subject. Anyone here that can share some info would be appreciated. What’s the going rate? Pro/cons?

[panhandlehunter]

The solar farms I’ve seen, the land will be unusable afterwards. Don’t know what kind of money you could expect.

[Pin Oak DXT]

Going rate is probably variable depending on location, size of farm, etc. I have information on a 4000 acre project that could kick off as early as this year. The first 20 years of the lease the annual payment is $600 per acre.

[Easttxbowman]

Big money per acre, but say goodbye to those acres while in operation.

[flywise]

Better make sure they are required to remove it all when it fails.
And you better wonder real hard about what happens when the company fails and leaves all that potential pollution on your land

[drwilliams]

Going rate is probably variable depending on location, size of farm, etc. I have information on a 4000 acre project that could kick off as early as this year. The first 20 years of the lease the annual payment is $600 per acre.

At 48 million they could do what they wanted! Thats crazy money for a solar farm

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[PYBUCK]

Unlike wind farms that have an accelerated depreciation schedule of 10 years, solar farms are 30 year depreciation. So be prepared to not have that land for use for a LONG time. Kind ok like CRP. You get money for the land but you cant do anything on it. Solar is subsidized by the government and is here to stay, especially if the democrats ever gain full control, so I don't think any farm will be abandoned until fully depreciated. We did several while I was commissioner. Be sure to have a lawyer read the contract and make sure there is verbage in there for return of the land to you at the end of the term with cleanup included.

[60 Deluxe]

I was contacted about a year ago. They wanted to lease my entire property. I told them that my deer hunting was more important to me than money. If I didn't live on the place the money would be really hard to pass up.

[Bassdeer]

At 48 million they could do what they wanted! Thats crazy money for a solar farm

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No kidding, Just write the the check for 48 mill and you can have it. then go buy a top notch deer hunting ranch for 10 or 20 mill and take the rest of your life off.

[Steves ATV]

Add following provisions:
1. CPI adjustment either annually or every few years
2. strong indemnification and remediation language
3. security lien
4. address road use, fence cuts, other surface damages
5. Reserve mineral rights / specifically exclude from contract (whether you have them or not)
6. Adequate maintenance of all facilities and infrastructure
7. Make subject to all outstanding ROW's, Easements, OGL's, etc. of record
8. Specify the amount of insurance you need them to carry. With that size operation a minimum of $5,000,000 per occurrence.
9. They pay additional property taxes associated with any improvements
10. Don't warranty title
11. Discharge and removal of any liens or other encumbrances on the lease due to their operations.
12. Notice periods for defaults and specific remedies to cure

others
- have them present a plan of development/construction and write the contract to fit to that. Make them pay you for changes. Ex.
- research to see what going rates are.
- use an attorney who is at least an oil & gas attorney, but experience in solar leasing would be ideal.

For those of you that don't use lawyers, if your not considering the above items and then some, think about that on your next agreement you sign. I'm not a lawyer, just highly recommend on something like this.

[flywise]

Add following provisions:
1. CPI adjustment either annually or every few years
2. strong indemnification and remediation language
3. security lien
4. address road use, fence cuts, other surface damages
5. Reserve mineral rights / specifically exclude from contract (whether you have them or not)
6. Adequate maintenance of all facilities and infrastructure
7. Make subject to all outstanding ROW's, Easements, OGL's, etc. of record
8. Specify the amount of insurance you need them to carry. With that size operation a minimum of $5,000,000 per occurrence.
9. They pay additional property taxes associated with any improvements
10. Don't warranty title
11. Discharge and removal of any liens or other encumbrances on the lease due to their operations.
12. Notice periods for defaults and specific remedies to cure

others
- have them present a plan of development/construction and write the contract to fit to that. Make them pay you for changes. Ex.
- research to see what going rates are.
- use an attorney who is at least an oil & gas attorney, but experience in solar leasing would be ideal.

For those of you that don't use lawyers, if your not considering the above items and then some, think about that on your next agreement you sign. I'm not a lawyer, just highly recommend on something like this.

That’s good stuff

[Throwin Darts]

make sure you can tie into them to keep your 12v feeder batteries charged! ha ha

[CEO]

make sure you can tie into them to keep your 12v feeder batteries charged! ha ha

Ha. Sounds like something my grandpa would have tried to do as soon as the crew left.

[Farmdog]

I signed a wind contract and regret it, I wish I took the solar deal instead, I felt sorry for my neighbors having to look at it, my buddy signed solar contract in the town of La Feria, he wants to retire from Tropical moisture cotton farming

[gtsticker]

I signed a wind contract and regret it, I wish I took the solar deal instead, I felt sorry for my neighbors having to look at it, my buddy signed solar contract in the town of La Feria, he wants to retire from Tropical moisture cotton farming

What are those windmills paying in royalties. Looking at the same option


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