In the rapidly evolving real estate landscape, wind energy projects are becoming an increasingly critical consideration for land realtors. With the shift towards sustainable energy sources, understanding the intricacies of wind leasing is essential for those looking to help their clients get the most value from their land while maximizing the potential of their land listings.
This blog post aims to explain the process of wind leasing and answer the most pressing questions land realtors and their clients may have. From determining land suitability for wind energy projects to navigating the negotiation process, we'll provide you with the insights needed to advise your clients and position your listings advantageously in the growing wind energy market.
Is land still able to be used when wind turbines are present?
Wind turbines themselves do not take up much space. In fact, they only take up just a few acres of land. However, wind turbines are placed far apart to not obstruct the flow of wind that accesses the turbines, so wind developers generally prefer large tracts of land for wind farms.
How long does it take for a wind farm to be built?
The entirety of a wind lease contract generally outlines a length of 2-10 years for the option period, and 30-50 years for development and operation phase. However, wind lease lengths vary across the country and are completely negotiable with the wind developer.
What does commission look like once a wind farm lease has been secured?
Commission earned on wind energy deals are typically treated similarly as commercial real estate commissions. Each realtor/broker will be paid based on their specific listing agreement with their client. In most cases, a percent commission of payments that are made over time are paid to the realtor/broker. Since wind leases can extend for up to 50 years, that means a wind energy lease commission could earn revenue for a land professional for a significant period of time. In other cases, real estate professionals have chosen to get paid upfront for their commission.
What type of land is best suited for a wind farm?
Large, wide open spaces are perfect for wind farm development. Wind developers typically look for large tracts of land (80+ acres) located near electrical infrastructure (substations and transmission lines).
How can I judge if my client’s land holds value for a wind farm?
The best way to judge your client’s land for wind farm potential is by using LandGate’s LandApp tool. LandAoo has all of the data needed to discover the value of your client’s property for a potential wind lease. You can view any property's proximity to substations, transmission lines, distribution lines, wind speeds, and local renewable energy incentives.
How much land is needed to build a wind farm?
Most wind farm developers are looking for large tracts of land, even though only a small percentage of the land is used for the actual placement of the wind turbines.
How can land realtors get the best deal for their clients?
The best way to get the highest wind lease offer for your clients is to enter the property into a competitive marketplace like LandGate. Numerous energy developers use LandGate's data and marketplace to evaluate and plan new projects. Listing on LandGate is free, and there are no obligations to accept any offers that you receive through a listing:
To discover the energy potential of any U.S. property, subscribe to LandApp for just $10 per month. Access nationwide ownership information, unlimited property reports, and more:
