Making money from the sun has a nice ring to it. Did you know that landowners can reap significant benefits from leasing their land for solar development?
Solar farms are more than just environmentally friendly power plants. They can produce long-term passive income with generous lease terms, remain under your and your family’s control, and at the end of the lease (typically 25–35 years), the land can be returned to its previous state.
The size of the land required to build a solar farm depends very much on the perspective or business model of the developer. Many developers specialize in a particular size range of projects, from 1–2 MW all the way up to large utility installations of 50 MW or more. As a rule of thumb, 1 MW requires 4–5 acres, so a large utility installation of 100 MW would likely need at least 500 acres.
There are a variety of things that make a particular piece of land suitable for the development of a solar field. Flat, well-drained areas with an open southern aspect are preferred. Sloping or uneven land can present challenges as can excessively rocky or sandy soil conditions. Picking an area without shade cast by trees or buildings is suggested, and excessive tree removal should be avoided as this goes against the idea of an environmentally friendly installation. Developers also try and steer clear of wetlands and areas containing endangered species.
Infrastructure with rights of way such as oil and gas pipelines and fiber optic cables may also impact the ability to fully utilize the land. If an airport is nearby, a glare analysis will need to be done. Other local permitting and land use issues can affect the speed and cost of a project as well.
Technically speaking, close proximity to substations or transmission lines is a significant added advantage since the cost of a more distant interconnection to the grid can have a detrimental effect on solar project financials. Even if the land is close to an interconnection point, it still needs to be confirmed whether the substations and transmission lines have the capacity to integrate the power to be produced.
The proximity of main roads and ease of access to the proposed site are also important, not only for the delivery of solar panels, inverters, racking and other materials for the construction of the project but also for operational and maintenance requirements after the solar field is up and running.
Putting your land to good use for the production of clean, affordable and renewable energy and boosting the local economy by employing local labor to build the solar farm demonstrate your commitment to being a responsible member of your community. In addition to converting underused land to a revenue-generating asset, the benefits spread to the wider world community by lowering greenhouse gas emissions and other pollutants and doing one’s part to help ensure a brighter tomorrow for current and future generations.
Please contact us if you are interested in turning your land into a solar power—and income—generator.
By Mike Pound, chief revenue officer, Inovateus Solar
