What Determines the Value of My Land for Solar Energy?
The feasibility and profitability of solar farming are resulting in landowners becoming more curious about the process of leasing unused land to solar companies like Solar Liberty. However, many are hesitant to reach out to solar companies or respond to inquiries because they aren’t sure how much value solar leasing will really provide. Here are three critical factors that help determine whether your land is suitable for hosting a solar farm and the money you can make with such a lease.
1. Layout and Topography
Solar farm builders often place ease of construction at the top of the list when looking for land. During an evaluation, they will consider the following characteristics.
- Slope: The best land is already mostly flat, and if it does have a slope, it shouldn’t exceed 5 degrees.
- Interruptions: The land can’t have any water sources that prevent panel grouping or make the ground unstable, such as ponds, creeks, or streams.
- Road access: Being able to get construction crews in and out quickly allows the company to save money and pass the savings on to you in the form of a higher lease rate.
Clear, flat land bordered by a road is ideal for a solar farm, and the more of that land you have, the more valuable each acre becomes.
2. Ease of Connection
Land that has plenty of connection potential is the most valuable to developers. During an evaluation, they will consider whether the property has:
- A substation, distribution line, or transmission line nearby.
- Adequate voltage for the planned project capacity.
- Adequate injection capacity on the local grid.
The easier it is to set up the solar farm with the local grid, the more interest you’ll get from developers.
3. Market Influences
There is an element of timing that can determine whether you get a higher or lower valuation on your land. Fluctuating market influences to watch out for include:
- Your state announcing new renewable energy goals.
- Energy buyers entering or leaving your state’s market.
- New policies and regulations regarding renewable energy development.
- Existing incentives being phased out.
Keeping an eye on local policy and current events can help you determine the right time to pursue leasing your land to a solar company.
Unlock Your Land’s Potential Today
If you have land that’s sitting unused in New York, Solar Liberty is here to help you derive value from it through a solar farming lease. If you’re interested in a low-maintenance, guaranteed stream of income for years to come, contact us online for a free solar evaluation.
