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Leasing Your Land for Solar Benefits You & the Environment

Updated: Nov 3

Photograph of a Solar farm on hillside - Leasing Your Land for Solar Benefits you and the Environment

Climate change is a pressing issue that affects us all. One way to combat it is through the use of renewable energy sources, such as solar power. If you own land, you might want to consider leasing it to a solar company, which would help contribute to the transition to clean energy. Let LandGate help you explore some of the reasons why leasing your land for solar can be a beneficial decision for both you and the planet.

How Does Solar Power Work?

Leasing your land for solar energy will help reduce greenhouse gas emissions. Solar power generates electricity through the use of solar panels, which converts sunlight into electricity. This process does not produce any greenhouse gasses, unlike the burning of fossil fuels, which is a major contributor to climate change. Solar energy has a positive environmental impact! By choosing to generate electricity through solar power, you are helping to reduce the amount of harmful emissions that are released into the atmosphere. Transmission and distribution lines are the pathways that electricity travels from the power plant to the consumer. Substations are the locations where the electricity is transformed from high voltage to low voltage. This allows the electricity to be used in homes and businesses! Usually, land located close to transmission lines, distribution lines and substations are valued higher than other parcels of land. There are two main reasons for this:

  1. The first is that there will be no added cost to developers to build electrical infrastructure.

  2. The second is because electricity loses power the longer it travels, so the less distance it has to travel the better.

Does your land qualify for a solar lease? If your land is located near a transmission line, distribution line, or substation, you may be in a great position to lease land for a solar farm! It is easy to find out the value of your land for solar potential using LandGate’s map:

Solar Leasing Benefits for Landowners

Potential Passive Income

Not only does leasing your land for solar energy help to reduce greenhouse gas emissions, but it can also provide a financial benefit for you and your family for many years. When it comes to getting paid for a solar lease, most solar companies will offer to lease your land in exchange for making an annual payment to you, providing you with a stable source of passive income. The solar company will typically agree to a long-term lease of 20 to 30 years and usually retain the option to extend the term of the lease for an additional 5 to 20 years.

Increase Your Land Value

In addition to the financial benefit, when your land is land leased for solar, this can also increase the value of your property. As the demand for renewable energy increases, properties with solar installations may be viewed as more desirable and valuable.

Leasing your land for solar can also have positive impacts on the local community. Solar projects create jobs during the construction phase, and they can also provide a boost to the local economy through the payment of property taxes and the use of local goods and services.

If your annual property tax increases due to the installation of the solar farm, you may be able to negotiate with the solar developer and include a provision in your solar lease that requires the solar developer to be responsible for the additional taxes.

Do Your Part in Mitigating Climate Change

Leasing land for solar energy production helps combat climate change by reducing the need for conventional fossil fuel energy sources. This is critical to protecting humans, wildlife, and ecosystems. Solar energy can also improve air quality and reduce water usage from energy production.

Still Use Your Land For Your Own Needs

It is important to note that leasing your land for solar does not necessarily mean that you can no longer use it as you have been in the past. Generally, it could be 4 to 5 years before construction of the solar farm begins. During a solar lease, most solar companies are willing to allow you to continue using your land as you have in the past.

This could certainly change once construction of the solar farm begins and for as long as solar panels are in place. If you were previously running livestock on your land and the solar panels only cover a portion of your land, you as the property owner can require the solar developer to install a fence around the panels to ensure there is no interference with the livestock.

In conclusion, leasing your land for solar can be a positive decision for both you and the environment. It helps to reduce greenhouse gas emissions, provides a financial benefit, and can be a meaningful way to contribute to the transition to clean energy and combat climate change.

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