Solar developers are approaching landowners and farmers to secure long-term land leases. Of late, landowners have been contemplating to lease their properties for solar farms investment.
Green energy improves the globe by adding long-term renewable energy to the grid. The size of land desirable for lease ordinarily ranges from 10 to 30 acres. But before you get into rental rates, first comprehend the common metrics used in calculating solar land transactions. Farmers should also understand the high-level factors that influence the solar market.
Following are 4 major circumstances that can make leasing your land to a solar farm company the best course of action.
1# You Want To Move On
Our desires and needs change with time. Perhaps, farming is not at all your suitable occupation, and you want to do something that’s physically demanding. In other cases, you want to shift to a city and live near your relatives and children.
Perhaps, the time to retire has knocked on the door, or you want to change your dwelling location. There comes a time in life you want to try something new for a change. In such cases, you want to sell or lease your farmland to another farmer or a solar developer.
2# Having a Land Not Viable For Farming
A wide sort of market and natural factors influence the viability and worth of farmland. These may include climate change impacts such as drought, changing consumer preferences for particular foods, and foreign competition.
3# Seeking To Generate More Revenue Than You Currently Do
Perhaps your farmland is productive, but you want to engage in something that generates bigger profits. It’s in such conditions that you think of leasing your property to solar developers.
Remember that you don’t have to surrender your entire land for solar investment. That way, you may proceed with farming on one portion of the land and invest the rest for green energy. It’s an efficient way of generating more income.
4# In Need Of Predictable Income
Everyone wants a fixed and long-term stream of income. Overtime market costs fluctuate, and agricultural production isn’t predictable. That makes it difficult to strategize for your financial future.
Operators in solar farms, on the other hand, pay you a fixed price per acre during the contract lifespan. That can go for 30 years and even extended. The charges operators pay can also go up to cater for rising inflation.
In the right conditions, the solar investment is among the most profitable utilization of rural land. There have been numerous adverts for companies seeking to lease land for solar farm. In a way to coerce landowners for the contract, it’s a good opportunity for landowners to make extra income. Lease rates usually range from $800 to $1,200 for every acre yearly.
Various local governments have also been implementing plans to secure productive farmland. The aim is to develop solar energy ventures on less productive patches of land. To fully comprehend the effect of such factors, it’s recommendable for landowners to consult their municipal assessor and attorney before signing documents.