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Though more and more homeowners and businesses are considering going solar daily, not everyone can install panels on their property. Sometimes, a residential or commercial roof is unsuitable for solar due to its orientation, size, age, or pitch. In other cases, commercial or residential properties also lack the space to install a ground-mounted array. So, how can we collectively do our part to support our planet and communities when not all corporations or property owners can switch to solar? Leasing land to a solar company is one solution that supports our community members, propels us towards meeting New York State’s ambitious climate goals, and also benefits land owners.
What does leasing land to a solar company mean?
Leasing land to a solar company, also known as land hosting, allows landowners to generate a stable revenue stream while producing clean, renewable electricity for their local community.
How leasing land to a solar company works:
- The solar host (landowner) leases a portion of their property to a solar developer via a solar land lease.
- In exchange for using their land, the landowner receives ongoing revenue for the length of the lease term (typically 20-25 years).
- The developer will build a solar array on this leased land to generate energy for a specific off-taker.
- In many cases, the off-taker is a community solar program that local homeowners and businesses can subscribe to for a monthly fee to receive a share of this clean, low-cost local energy.
So, leasing land to solar companies is a win-win for everyone involved! Given this, it’s no wonder New York State solar farms continue to pop up.
What makes a good site for leasing land to solar farms?
Many regions in New York State are ripe for solar development, particularly those closer to major population centers with high energy consumption.
Landowners within these regions now have the opportunity to generate stable revenue while helping their larger community access clean, renewable energy and lower their energy costs.
Must-haves for a solar land lease:
When GreenSpark is evaluating a site’s potential for a solar land lease, here are a few things we consider the following.
- Size: The land must be 20 or more acres. Otherwise, the potential to build a solar farm of real scale and impact is too limited.
- Power: Close proximity to three-phase power. To confirm this, you can check out a nearby utility pole. If it has three wires on top, it is three-phase power!
- Capacity: A limited number of projects are in the interconnection queue, meaning there is a short list of other projects ahead of you requesting connection to your local utility.
Ideal land for solar farms:
- Under-utilized land, such as parking lots and former industrial sites, is ideal for solar due to its proximity to power lines and support from NYSERDA’s Build Ready program.
- Farmland is also attractive for solar projects because of its flat, cleared terrain near power lines. By focusing on depleted farmland and using agrivoltaics (combining solar energy with agriculture), landowners can generate income while maintaining productive farmland.
We aim to partner with local landowners, solar developers, and communities to find the best economic and environmental opportunities for all.
What is the typical solar land lease structure with GreenSpark?
We understand that solar is an investment and always want to ensure a quality installation. Still, it’s essential to know that every solar project is different!
The price paid per acre varies based on the interconnection cost, the project size, the property taxes, and the permitting requirements. That said, on average, a typical solar land lease structure in New York State is a 20-25-year agreement, with a rate of $1,500 per acre per year. This rate typically increases by 1-2% each year.
At the end of the contract, GreenSpark will remove all solar panels from the land, decommission the site, and restore it to as close to its initial condition as possible. Land lease agreements with GreenSpark are an opportunity to partner with a local, independent company and Certified B Corp while hosting clean, locally-generated solar to benefit our communities.
Solar land lease FAQ
With so much interest in becoming a solar land host, GreenSpark Solar conducted an informational session that you can watch on-demand. Click on the link below to head to the webinar registration page, and you’ll receive an email with the link to watch the session.
The future of leasing land to solar companies
Communities across NYS are embracing solar and recognizing the environmental and economic benefits it can offer.
To help achieve New York’s climate goals, more efforts to incentivize communities to provide a good path for building ground-mount solar need to be enacted. GreenSpark is doing our part to encourage local municipalities to participate.
The solar industry will continue to create strategies that find landowners with the most interest and impact on neighbors and communities. Quality solar installations that are built in collaboration with the community are possible. Let’s do it together!
For more information on how leasing land to solar companies can benefit you and your community, and how to start the process, explore our comprehensive land hosting page.
