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Why a landowner must lease land to a solar farm? 

written by Wayne Robin January 5, 2022
Why a landowner must lease land to a solar farm? 

Chances are if you have a piece of suitable land in a service territory. At least one solar company has extended to consider leasing your land for one of their projects. While a lot of landowners have discovered this, still several do not consider a ground lease for a solar project. Although, it seems intimidating to use your land for a new job and sign a long-term lease. A solar land bank is usually a more profitable and safer option for a lot of landowners in Colorado.

Solar farms also mean a solar park, are large-scale solar installations. They usually operate as power plants like natural gas power plants. Far from residential solar farms, solar farms have their solar panels into the ground. Across many areas of land. Those landowners that lease their land to a solar developer can expect the benefits below.

Benefits of landowners that lease their land to a solar developer

  • Create a reliable and predictable income stream for decades
  • Landowners can expect the rent paid by the solar farm to overreach revenue. From dormant land or agricultural endeavors. For farmland owners that used their land for agriculture. A solar ground lease provides a reliable income stream. As their sites are normally cleared and flat of any major obstacles that might have delays during construction. Landowners will no longer have to worry about finding a new tenant farmer or renegotiating a land lease.
  • Produce income from otherwise land that is not used
  • A piece of dormant land is one of the obvious candidates for a solar site lease. Whether the landowners don’t have the water rights, or the land will not give anything when it is farmed. A solar site can vastly enhance the value of a dormant piece of land. A lot of solar farms also pay taxes for a parcel of land they lease. This may lead to the landowner’s yearly financial burden. Into an income-generating asset without the need to pay for any site enhancement themselves.
  • Earn money while making a difference
  • Many landowners understand that what they decide to do with their land is part of their legacy. While many people take pride in having a positive impact on their communities. People are now starting to consider what kind of positive impact they can impart to future generations. Leasing your land to a solar farm is an ideal way to do your part. In helping to transform a renewable and cleaner country.
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