Solar Farm Land Lease Rates Oregon

The popularity of solar leases has increased significantly in the last year.

Solar farm land lease rates oregon.

The solar power purchase agreements issued by the utilities are often awarded by competitive bid. How are solar farm land lease rates determined. The above cost is non inclusive of the license fees and value of the land. For example the solar farm land requirements for a 1 megawatt solar plant is around 5 acres.

Your lease may preclude you from signing an oil and gas lease farmland rental timber agreements or other leases agreements. If the soil is decent and there is no infrastructure such as buildings municipal water fencing etc. A reasonable cropland lease rate might be 75 per acre year. As you consider leasing your land for a solar farm there are many things to consider including.

Determining the value of a solar farm lease rates usually comes down to a two step process consisting of an evaluation of the land itself and the actual lease negotiation. When the solar craze hits your area it may seem like the gold rush and you re sitting on the mine. Depending on field access one of those smaller fields may no longer be accessible if a solar project is constructed in the middle of the existing large field. Solar farming is increasing in popularity in oregon and it can be a great way to bring in extra income.

In general cropland rental rates are higher than hay and pasture land. The cost of land for 1 mw plant will therefore translate to 2 500 per month on average. Companies are advertising in farm magazines in an attempt to coerce landowners to sign up their land for solar. Solar farm land lease rates in the right locations solar is one of the most profitable uses of rural land.

However it s a big commitment to make and navigating a solar farm lease can be tricky so we ll break it down. Opportunities exist to make major income from solar leases as companies advertise lease rates of 800 to 1 200 per acre annually. However pinning down an exact figure of what land should rent for can be a challenge for landowners because of the wide range of data found on the internet. If the land lease rate is too high then the project cost increases.

Lease land for solar farm whether landowners are interested in increasing the revenue your land generates land banking your property until more lucrative future development opportunities are available or being part of the paradigm shift to renewable energy a solar ground lease is a fantastic option for landowners. Restriction of future leases. You may be tempted to shop around for the highest lease rate but beware. Converting farmland to solar this is a long term.

The solar company may only end up leasing a portion of the property and then as a land owner you could be left with two small fields with a solar farm in the middle.