Positives And Negatives Of Leasing Land For Solar Panels

Here are the key pros and cons of solar farms to consider.

Positives and negatives of leasing land for solar panels.

As states continue to emphasize solar see california s solar panel mandate leasing could be an affordable option for many residents. This is food for thought among the solar farms pros and cons. Even with the expanded capacity of grids to receive sun generated electricity the price passed on to the consumer is intolerable compared to what they would pay relative to. Whether the landowner does not own water rights or the land will not produce anything when it is farmed a solar site lease can drastically increase the value of an otherwise dormant piece of land.

For one lessees won t qualify for tax incentives. 1 solar leasing companies get to claim the tax credits rebates and srecs. Installing a solar farm on farmland could cause the land to lose its current agricultural use value status since the land is no longer used exclusively for agriculture. We ve put together a pros and cons list to get you thinking about whether or not it s a good fit for you and your land.

Commonly the price offered is lower in the development phase and higher during the operations phase. We might run out of oil or natural gas one day. The disadvantages of solar leasing include. Solar leasing may be more quick and convenient than purchasing solar panels but there are many reasons why buying a solar energy system might be a more sensible choice.

List of the pros of solar farms. Solar leasing does have some drawbacks potential lessees should pay attention to. The goal of using solar energy is to reduce if not eventually eliminate our dependence on fossil fuel resources. If you have a solar lease or a power purchase agreement ppa you will need the new owner to take over your agreement which can be a hassle.

This makes sense as there should be income generated during the operations period while the same is not true during the development phase. Solar leases likely will prevent any other property use. Leasing that land to a solar development company is a personal decision that is made based on a multitude of factors. A landowner who enters into a solar lease should expect to have solar panels on his or her farm for 40 to 50 years.

Problems with solar leasing. It appears that multiple solar companies are aggressively scouting and romancing property owners throughout the state with their promises to lease a few dozen acres and up to hundreds of acres of land with high rental rates per acre. Disadvantages of leasing solar panels. Lithium ion battery packs capable of storing solar energy cost approximately 1 000 per kilowatt hour.