A great way to make use of vacant land is to either sell or lease your land to solar developers. Empty, vacant land that is not in use is great for building solar farms.
As a landowner, land investor, or land developer, a big concern is being able to pay taxes on land that is not producing any revenue. By leasing your land through a site lease, you will be guaranteed 20-25 years of consistent revenue while still reaping the benefits of appreciation over a long period of time. When the site lease is over, you still own 100% of the land and can do whatever best fits your strategy.
Typically, the larger the plot of land is, the more solar panels a solar developer can install, meaning a higher yearly lease payment for the property owner. Wetlands and endangered species habitats are unsuitable for solar installations and therefore do not increase the size of the system. Land that is mostly or entirely clear will result in the highest yearly lease payment, and the closer the land is to high capacity power lines, the more viable the system will be.
Another option is to sell land directly to a solar developer. Large plots of land are in high demand for solar farms, and solar developers will often pay a premium for optimal solar plots. The highest premium is paid on land that is several acres, cleared, and close to high capacity power lines.
Land that is not cleared is usually still viable, but will cost the solar developer more money, resulting in a lower purchase price. It costs solar developers roughly $1 million for every mile of wire connection installed to connect a plot of land to a high capacity power line or substation.
• Attractive premiums for large, clear plots of land
• Maintain land ownership and receive annual income over a 20+ year period with lease model
• Larger solar farms on open land plots supply large amounts of clean electricity to the grid
• Zoning laws may prohibit solar farm opportunities and can be difficult to bypass
• Must be close to a high capacity power line
• May require tree removal on the property
Luckily, this option for going solar is possible in almost every state, with some being better than others. Generally, the higher the electricity costs, the higher the lease payments or sale price of the land will be. Additionally, state incentives and rebates may play into the economics of the solar installation. The most important factors in determining if your property is good for a solar farm are size, proximity to substations or three phase power, and zoning laws. NRG Market will determine and communicate all of this information to our network of developers in order to get you a quote that you are happy with, whether you are looking to sell or lease land for solar farm development.