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Solar Leasing Benefits for Farmers


photograph of a sunset over a landscape with a fence on land

Farmers are stewards of the Earth’s resources. To ensure their farms can benefit future generations, farmers recognize the need to look ahead. They understand that today's practices can have a profound impact on tomorrow's world. This is precisely why renewable energy holds such appeal for those in the agricultural industry.


Solar farming is the practice of generating electricity by converting solar energy into electrical power. In recent years, solar farming has gained immense popularity thanks to its numerous benefits. While solar power is a familiar option, often used for small-scale applications like powering electric fences, many farmers are unaware of the incredible benefits that come from installing larger-scale solar panels on their land. In this document, we will explore some of the most significant benefits of solar farming for farmers.



Diversification of Income


One of the primary benefits of solar farming for farmers is diversification of income. With traditional farming, farmers are heavily reliant on crop yields and market prices for their income. This makes them vulnerable to external factors such as extreme weather conditions or fluctuations in market demand.


However, with solar farming, farmers can generate a stable and predictable income through leasing their land to solar companies. The solar energy company installs the solar panels to generate power, and then they sell the power to the local utility company. The total amount of power possible depends on the size and type of the panels, the layout of the farmer’s property, and the weather patterns typical to the area.


Solar leases are typically paid per acre per year (but this is negotiable), and the amount of solar lease payments typically ranges from $700-2,000 per acre per year. Depending on the size of the land, this can serve as a reliable secondary source of income, reducing the typical risks of financial instability for farmers.


Retain Ownership of the Land


Another benefit of solar leasing for farmers is that the land remains in their ownership. In exchange for allowing a solar company to install solar panels on their property, the farmer gets paid lease payments, all without sacrificing ownership of their property. This allows farmers to continue growing crops on the remaining land, providing them with a diversified income stream. Furthermore, if the solar panels are eventually removed, the land can be returned to its original use without any long-term effects.


Low Maintenance Requirements


Leasing land for a solar farm means that farmers can avoid the constant land management that traditional farming requires because the solar company is responsible for the maintenance of the solar panels, not the farmer. Farmers can keep their properties in the family and still enjoy the privacy and peace that they have always loved on their farms.

Environmental Benefits


Solar farming also has significant environmental benefits. By participating in the addition of a renewable energy source, farmers can significantly reduce their carbon footprint and contribute to a more sustainable future for all. This aligns with the core values of many farmers who prioritize sustainability and protecting the environment for future generations.


Land Value for Solar Farming


There are many different factors that solar energy companies consider as they evaluate parcels of interest, including buildable acreage, proximity to electrical infrastructure, solar irradiance, and more. LandGate’s free property report provides property owners with a free solar lease estimate custom to their land that accounts for these factors and more. Explore our listings and get your free property report on our map today:




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