Photovoltaic Panel Land Lease 2025

Can a landowner continue farming if a solar project is leased?

While the landowner may be able to continue farming or ranching the land during the first few years of the lease, many leases require the landowner to stop all activity on the leased land once solar project construction starts. After construction, the lease may allow the landowner to return the non-developed land to agricultural use.

Should a landowner consider a solar energy lease?

While most solar leases contain similar terms, each one must be carefully analyzed. When approached by a landman about a solar energy lease, the landowner must first determine whether the impact and intrusion of a solar farm operation outweighs the current and future use of the land. The answer is not always yes.

Can solar panels be built on a leased land?

Solar leases grant energy companies the exclusive right to capture and convert the unobstructed flow of sunlight across the land. As a result, construction on the leased land that may cast a shadow onto the solar panels – such as barns, grain bins, windmills or windbreaks – is generally prohibited.

What happens if a landowner leased to a solar developer?

The landowner is likely to lose all productive use of lands leased to a solar developer. Thus the payment for the use of the project site will not be ameliorated by any offsetting additional income or benefit the landowner might otherwise obtain from joint use of the site.

Should you Lease Your farmland to a solar farm?

The primary reason a landowner might lease their farmland to a solar farm is the potential for steady income. Solar leases can provide a reliable revenue stream, often more predictable and lucrative than traditional farming, especially if the land is not otherwise being used efficiently. 5. What Are The Risks Of Solar Leasing?

Can a solar lease increase income from farming?

In many cases, solar lease rates can exceed the income from traditional farming, especially in areas with lower agricultural productivity. For instance, in regions where cash rents for farmland are relatively low, a solar lease offering $1,000 per acre could represent a substantial increase in income.