Solar Farm Land Lease Rates Australia

If the land lease rate is too high then the project cost increases.

Solar farm land lease rates australia. I ve been contacted by a company wanting to enact a solar lease on my land. How are solar farm land lease rates determined. Opportunities exist to make major income from solar leases as companies advertise lease rates of 800 to 1 200 per acre annually. 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. As stamford texas attorney james decker explained we re still early in the era of solar energy development in. In general cropland rental rates are higher than hay and pasture land. The above cost is non inclusive of the license fees and value of the land.

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. Solar farm land lease rates in the right locations solar is one of the most profitable uses of rural land. On average 1 acre solar farm cost about 500 per month to lease in the united states. You may be tempted to shop around for the highest lease rate but beware.

On average solar rental fees will fall somewhere around 700 to 3 000 an acre. A reasonable cropland lease rate might be 75 per acre year. For example the solar farm land requirements for a 1 megawatt solar plant is around 5 acres. Benefits leasing land for the development of a solar farm can provide land owners with 20 30 years of guaranteed annual income with no upfront investment or ongoing farming costs.

Like we ve mentioned before rental fees are determined by how profitable the location will be once the solar project has been completed. 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 soil is decent and there is no infrastructure such as buildings municipal water fencing etc. The cost of land for 1 mw plant will therefore translate to 2 500 per month on average.

The solar power purchase agreements issued by the utilities are often awarded by competitive bid. 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. What issues do i need to be aware of. The popularity of solar leases has increased significantly in the last year.

Solar lease rates are almost always based on both the quality and the quantity of the land assigned to the lease. A solar farm lease can potentially unlock long term income without all the hard work and financial risks associated with farming.