Solar Farm Land Lease Rates Colorado

The short answer is it depends but solar lease rates also called rents typically range from 250 to 2 000 per acre per year this article looks at the factors that influence the rates a solar developer may offer for your land.

Solar farm land lease rates colorado. Opportunities exist to make major income from solar leases as companies advertise lease rates of 800 to 1 200 per acre annually. Solar farm land lease rates in the right locations solar is one of the most profitable uses of rural land. See the 2016 grazing rate chart for current rates. The board adopted a tiered grazing rate structure effective january 1 2016.

I think there has to be a different consideration for farm land leased for solar versus farmland leased for crops. The solar farms we develop require large amounts of land where we will ultimately place tens of thousands of solar panels. 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. The land board tracks grazing rates through a statewide survey of private leases.

How are solar farm land lease rates determined. I think my option will bring in a higher than average rent for a solar farm but it came with a price. The popularity of solar leases has increased significantly in the last year. This survey is typically conducted every three years.

The most commonly asked question by landowners regarding solar farms is how much can i lease my land for. 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. Once the lease term expires all solar equipment is removed and the property is returned to the owner in either a ready to plant or a ready to develop condition. Solar ground leases can last between 15 and 30 years with most lasting around 20 to 25 years which coincides with the useful life expectancy of solar pv panels.

Not so with a long term solar lease. Companies are advertising in farm magazines in an attempt to coerce landowners to sign up their land for solar. Crops come and go in a year. The question remains just how much do solar farms pay to lease land over the course of thirty years the rent will accumulate into the hundreds of thousands of dollars.

What annual payment will i receive in exchange for granting the option to use this land for a solar farm what payments will be made prior to the start of any solar project. 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. 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.