5 Reasons to Lease Your Land To A Solar Farm

Trying to determine the best way to make use of a large piece of land you own can be difficult. Using the land for agriculture or developing it can allow you to achieve your investment goals, but it can also lead to many uncertainties and risks. One option that doesn’t carry any uncertainties or bring with it any risks is leasing out the land and having a solar farm built on it. In this article, we’ll provide an overview of how this type of lease works and the financial and environmental benefits it provides.

1. Steady Rental Income

Developing your land by building commercial property or rental housing can potentially be lucrative, but it does come with certain challenges. For starters, large-scale construction projects are incredibly complex and often end up running over budget and taking longer than originally planned. Your rental income isn’t always guaranteed either, as it’s dependent on keeping all the properties occupied.

By leasing your land for a solar farm, you’ll never have to worry about your income fluctuating. You’ll also avoid the hassle of having to deal with tenants yourself or needing to hire a property management agency, and having your income reduced. The other major benefit of leasing the land is that the company you work with handles all the site preparation and installation and provides all the equipment. That means you have zero costs, allowing you to start earning money from the start.

A solar land lease also typically generates more money overall than using the land for agriculture. While agriculture can be lucrative, it’s wholly dependent on the weather. Drought or heavy rains that flood the crops can result in years where you lose money. With a solar farm, your income is always predictable.

2. Long-Term Security

Another issue with leasing out residential or commercial property is that you may experience a large amount of turnover. If you have properties that remain vacant for an extended period, you could face difficulties meeting your financial obligations. The worst-case scenarios are that you default on the loan you took to build the property, and the bank forecloses on it, or you’re forced to sell it for less than your initial investment.

With a solar farmland lease, you’ll have long-term security and continue earning the same income throughout the full length of the lease agreement. The term of the lease contract is typically for the expected operational life of the solar equipment, which is usually between 20 to 30 years. At the end of the lease, you then have the choice to sign another one or have the leasing company remove the equipment and use the land for a different purpose.

If you choose the latter, your property will be restored to good condition and basically be ready to build on should you choose. Most lease contracts are flexible as well and include an option that allows you to buy the solar farm and take over its operation. If you choose to go this route, the solar company will usually train your team and provide all the technical documentation to ensure you can run the farm effectively after the handover.

3. Low Land Maintenance

Maintaining a large residential solar farm or commercial complex requires a huge amount of work. Not only do you have to keep up with all the necessary building maintenance and repairs, but you must also maintain the landscaping and the rest of the grounds. If you lease out your land for a solar farm, the leasing company will handle 100% of the property maintenance as well as take care of maintaining and repairing the equipment. That means you won’t have to do anything yourself and can just sit back and continue earning passive income.

4. Contributing to Clean Energy

Another concern with building on your land is the environmental impact. Whether you build a commercial complex, single-family house, or multi-family dwelling, your property will have a huge carbon footprint and directly contribute to even more greenhouse gases being released into the atmosphere. With a solar farm, your property will have the opposite impact, ensuring you contribute to helping protect the environment instead of causing further harm.

5. Positive Community Impact

Having a solar farm built on your land can positively impact the local community, as all the clean energy the farm produces goes directly into the grid. Large-scale solar installations alleviate strain on the grid and reduce the risk of outages. The additional power from solar farms in the area can also help to keep energy costs lower, allowing families and businesses in the community to save money.

At Solar Liberty, we’re ready to guide you through the process of leasing out your land in New York, Maryland, Pennsylvania, or Maryland for a solar farm. We have nearly 20 years of experience and will oversee the entire process from start to finish. That includes working with you to determine the best area for the farm, evaluating the land for suitability, and handling all the permitting, installation, and ongoing maintenance/repairs. If you want to invest in building a solar farm instead of leasing out your land, we can also design, engineer, and construct a turn-key solar installation that works for you. To schedule a consultation and learn more about our leasing or solar farm construction process, contact Solar Liberty today.