The government aims to invest in renewable energy sources to reduce the impact of climate change and combat the high fuel prices. There has been a high demand for land for solar farms. Sunlight, a free raw material, generates energy without intervention.
However, landowners are still determining whether to use their property to generate passive income or lease the land for solar development projects. If you opt for a solar lease, here are the factors you should consider.
Land needs to meet the criteria for solar farms
Solar developers have specific requirements when looking for potential solar project sites. Upfront requirements make a property fit for a solar farm, saving money and time. The first thing to look for is the distance to the nearest transmission line, which can be a deal setter. It is a prime location where a suitable transmission line can be stretched within a mile. A good rule of thumb is to measure the distance of the substation from the infrastructure.
7 Home Design Tips For Energy Efficiency
Solar development projects need time
Solar development projects require time and take time to happen. Any project can typically run for years or even 2-3 decades, so a developer must research well before using a property to be productive and provide good profit. The initial stages could be faster, and the landowner must understand that the building process might begin after the contract is signed. There are various issues, such as getting the permit, testing and measuring sites, etc.
Expectations after leasing out land for a solar project
The benefits you can expect are- turning the property into a solar land bank for the next few generations, getting a stable and predictable income based on the market fluctuation associated with the land use, and contributing your part to produce clean and zero-emission energy. A landowner can also seek advice from a land consultant near me.
Deciding the worth of the land
Many factors determine the amount you are going to be paid when you lease out your land for a solar project, such as the size of the property, topography of the land, water bodies near or on the property, the size of the solar farm project, whether it is medium or large utility skills project, land values in that area, access to other properties. Along with this, the supply and demand for solar sites in that area and incentives provided by state and local governments to the solar developers are also considered, which decides the price of the land.
7 Things To Keep In Mind While Selecting A Solar Panel For Your Home
Facing certain backlog
Leasing out the land for solar form might not bring the appropriate success that was estimated previously. Slightly, prerequisites must be settled to understand the nature of the project in the long run. Also, surprising circumstances can arise in the middle of the project, making it infeasible from the developer’s perspective. Thus, it would help if you understood that the project may not always be the same for all the landowners leasing it.
Summing it up
The statistics on the success of solar farms tend to vary from one region to another, and there is only a general rule once and unless the project peaks up and gives profit every year. However, passive income through solar development can indeed change the life of a landowner, but one should have patience.
