Solar Farm Land Lease(s) "Price Per Acre"

BR549

Twelve Pointer
Anyone know of the $$ per acre to lease crop land for a solar farm. Im hearing about some mighty big numbers...

Company ?

Price per Acre?

County?
 

Pirate96

Twelve Pointer
I do not have numbers, however it must be pretty good these days in Johnston County. The solar farms are popping up everywhere here. Seems to be the 2nd option behind subdivisions here now.
 

nekkedducker

Ten Pointer
I've thought about this as well but info is hard to come by. I even asked a representative from duke progress a few simple questions and he gave me the cold shoulder. But from what I gathered I may be too far away from a major grid access. But yes I've hear anything from $1000 a month to 4 or $5000 a month.
 

Jlewis74

Old Mossy Horns
There is a huge one near Scotland Neck I will see what I can find out but I think they purchased the land. Sun Energy is managing it.
 

NCST8GUY

Frozen H20 Guy
I heard a rumor from someone who says they were contacted about this and they told me that they "landowner" would be responsible for disassembling and removal of the equipment after it had run its course. Anyone know if that's true?

Either way, this person did not accept the terms offered. And they are quite astute to making money.
 
From the letters I've read it depends on how much power they can upload from the site. 300-1200 an acre was the range for the most part. Proximity to Transmission lines being a valuable asset.
 

BR549

Twelve Pointer
The transmission line is on my land (easement) it appears they have leases pending with other neighboring landowners thus have to come across me to connect.

I'm hearing 800-1200k (lease) per acre, 20 yr term.
 

stormm4

Big Ole Nanny Doe
I heard a rumor from someone who says they were contacted about this and they told me that they "landowner" would be responsible for disassembling and removal of the equipment after it had run its course. Anyone know if that's true?

Either way, this person did not accept the terms offered. And they are quite astute to making money.



My co worker said yes to this. Your cost at the end of contract.
 

Trophybucks

Guest
My co worker said yes to this. Your cost at the end of contract.

Yep but how much is all that metal worth at the end? LOL your not hurting either way and after 20 years you have been paid far far far more than your lands true value. You could donate it to the local boy scouts and still come out good.
 

Southside

Ten Pointer
Spoke to a fellow yesterday that has land leased to them now. He wouldn't give the exact number but around $850-$900 was the lease price per acre.
 
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DRS

Old Mossy Horns
From the letters I've read it depends on how much power they can upload from the site. 300-1200 an acre was the range for the most part. Proximity to Transmission lines being a valuable asset.

This is what I'm hearing for the ones around here. Lease has a lot to do with size(how much power can be produced) and how close are main transmission lines. The closer the higher the lease.
 

Rescue44

Old Mossy Horns
A friend is getting $1000 per acre on 40 acres. The salvage value is supposed to cover the clean up cost. I would love to put what me and my Dad have in the solar panels. Difficult to net $800-$1000 per acre growing cotton, beans or corn and no investment or risk involved. And the property tax is taken care of. NC incentives expires this year and Federal incentives expires next year. A rep with one of the solar panel companies said that is why there such a rush to get the farms done. I'm about 3 miles away from one solar farm but inside a different power suppliers area. Oh well.
 

Southern

Ten Pointer
I have solar developers calling me every week to help find them land. Rents are across the board but some are very high. The problem I have with the developers is that they generally want to tie up your land for several years with an option that they have paid you little for, while they do their studies and try to get permits and incentives. Most landowners don't want to tie up their land for several years with little or no money down.

Also, they need the land to be near 3 phase power and a substation.

My guess is the high dollar leases will be coming to an end before long.
 

BR549

Twelve Pointer
Aprox 2 miles between the install and a substation. There is a bill to extend the 35% NC Tax Credits at the GA now to extend past 12/31/2015. Below is the run rate for 88 acres @ $1k per acre.

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Lucky Clucker

Old Mossy Horns
I worked on one last year in Candor. It was a 50 acre farm, yes they need to be near a substation area. Entropy was the name of the company, they are based out near Charlotte. do a lot of work in the eastern part of the state.
 

Dan Apple

Old Mossy Horns
Post up more contact info for companies guys... I have 65 acres that I will GLADLY lease to anyone for $1000/acre per year....
 

m_jolley

Spike
I was involved with helping a solar company acquire land in eastern NC the past two years and was involved with the large array installed at the old Halifax County airport in Roanoke Rapids. I have moved to another part of the solar industry for the time being.

Rates I dealt with varied from $250 to $750 per acre paid annually. The days of $1000 plus per acre are gone. Each year in December the utilities post what they will pay per watt for solar power and each year these rates have gone down. Lease rates are also dependent on proximity to 3 phase power and substations, in general 1 mile and closer is preferred. Other factors that affect the rates are open vs wooded acreage, water features, and flat vs rolling terrain.
There are also escalators involved as well. Our standard lease was a 20 year term with two options for a five year extension, possible 30 year total lease, with a 30% escalator in the rate per acre every 5 years. We also paid the property taxes during the lease period and any recaptured taxes the county would require.

As for the clean up at the end of the lease, it was in our lease agreement that the property would be restored to it's original condition by the solar array owner, not the land owner. NC State also has performed what they call an "end of life" study on solar arrays that basically says the salvage value of all the components far exceeds the cost to remove it.

Hope this helps
 

bryguy

Old Mossy Horns
But don't you loose basically all use of the land with the lease? Bet the solar company wouldn't want you hunting or target shooting on your own land with their solar panels on it


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dc bigdaddy

Old Mossy Horns
Contributor
But don't you loose basically all use of the land with the lease? Bet the solar company wouldn't want you hunting or target shooting on your own land with their solar panels on it


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that's basically what a lease does. it gives the rights to the people leasing it.
 

bryguy

Old Mossy Horns
Not with the agricultural lease I sign...it gives the farmer the right to tend the land.....but I can still hunt my on land and do as I see fit as long as I don't damage his crops.


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bryguy

Old Mossy Horns
Once the solar arrays are up, then the hunting and recreational use go out the window correct?


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dc bigdaddy

Old Mossy Horns
Contributor
different leases, different terms. we didn't lease ours. I just can't see my in-laws staying in a solar farm.
 

nchunter

Twelve Pointer
But don't you loose basically all use of the land with the lease? Bet the solar company wouldn't want you hunting or target shooting on your own land with their solar panels on it


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$1000 per acre/year, I'd find somewhere else to hunt!
 

gremcat

Twelve Pointer
Alot of the the scrap is glass and silicon not metal. What happens if the company goes belly up? Most of the Solar going in is Silicon Flat Plate from China. If that deal was made for CPV then absolutely. The scrap on the arrays would be huge.
 

MJ74

Old Mossy Horns
Post up more contact info for companies guys... I have 65 acres that I will GLADLY lease to anyone for $1000/acre per year....

I'm with you Dan.

I don't even own any land but I'm willing to buy some if they will pay that much....[emoji3]
 
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