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re: I have someone trying to pitch me on Solar Farms...

Posted on 9/14/22 at 11:02 am to
Posted by SugarCane318
Member since Aug 2022
6 posts
Posted on 9/14/22 at 11:02 am to
(no message)
Posted by iPleadDaFif
Member since Mar 2022
260 posts
Posted on 9/14/22 at 11:06 am to
Hey Bro... I've been digging into the industry for the past 3 months from a "salesman/installer" point of view... Do your research, and A LOT of it before you sign anything.. at this point in my research, I'd tell the dude to frick off.

Look into Louisiana Net Metering. It varies by state. I didn't read all the replies, so if needed, I'll come back and edit to add, etc.

Edit 1: I will add this... for residential.. salesmen get up to $20k commission on a closed moderate sized deal. They will lie their asses off to get you to sign, and I'd venture to guess his commission on a farm would be well over 100k. Keep that in mind. The industry is unregulated & full of lying scumbags.
This post was edited on 9/14/22 at 11:10 am
Posted by SugarCane318
Member since Aug 2022
6 posts
Posted on 9/14/22 at 11:10 am to
These companies are preying on land owners. They are locking up land with 25-30 year leases but all they are really farming is “carbon credits.” As soon as the subsidies dry up(the only thing that’s making these ventures profitable), they will vanish. They are double dipping, selling the power and getting the subsidies. I would highly advise against this unless the land isn’t viable for anything else.

The solar panels being made today will be obsolete in 5 years, just as the ones manufactured 5 years ago don’t generate the same KWhs as ones today. These companies aren’t going to be upgrading these panels. They are grabbing as much government money as they can while our government is run by crazies.

These companies are all shell companies that will be defunct in a few years when the subsidies are gone and you will be left with an eyesore of useless land.
This post was edited on 9/14/22 at 11:12 am
Posted by SugarCane318
Member since Aug 2022
6 posts
Posted on 9/14/22 at 11:22 am to
Also, another red flag that should make you stop and think…

Why are they being so aggressive in a state that is cloudy 100 days a year?

They are farming taxpayers, not energy.
Posted by iPleadDaFif
Member since Mar 2022
260 posts
Posted on 9/14/22 at 11:24 am to
quote:

I've been looking into this as well, but cannot figure out anywhere online what the going price per KWH is that Entergy or any of the other utility companies would be willing to pay.



Entergy LA’s Avoided Cost Rate effective 3/1/2022: $0.0368226/kWh

This and other information can be found at the above link for the Rider Schedule DG (full info in the google doc below)

Link with full info below. It's from solar sales app, Quativa.

LA Entergy Google Doc

Note: Avoided cost refers to energy production from a residence. Meaning any additional energy produced above and beyond what is used and designated to be sent to the grid will be purchased by Entergy at $0.0368226/kWh

Note*: There MAY be different regulations for solar farms as this info is for residential. Will update with any additional info I find.



This post was edited on 9/14/22 at 11:34 am
Posted by texn
Pronouns: Y'All/Y'All's
Member since Nov 2019
3515 posts
Posted on 9/14/22 at 11:28 am to
quote:

for residential.. salesmen ... will lie their asses off to get you to sign... The industry is unregulated & full of lying scumbags.


I agree with this 100%
Posted by weadjust
Member since Aug 2012
15150 posts
Posted on 9/14/22 at 11:32 am to
What happens when your land is no longer taxed as agriculture and they charge at a commercial rate with lets say $10 million in improvements/equipment
Posted by DeCat ODahouse
Premium Member
Member since Jan 2017
1375 posts
Posted on 9/14/22 at 11:32 am to
quote:

For a very small initial option fee paid to the landowner, the landowner's land is tied up forever.


THIS!

Our parish council woman helped some dairy farmers review proposal's for their property in our area. The contract they were being asked to sign ceded more surface property rights than the owners had thought about.

Like what if no solar is built, but 2 years down the road, oil is drilled on adjacent land? Have you just signed away rights to charge the oil company for roads and other utility usage?

Are you up in the Haynesville Shale area?
Posted by TheOtherSide
Baton Rouge
Member since Sep 2016
341 posts
Posted on 9/14/22 at 11:50 am to
I am just shooting in the dark due to my ignorance, but you need to verify what the current property taxes are on the “chunk of land”.

What are the taxes with the use such as farmland? What will it cost if taxed as a solar farm?

Will the property change in value due to the change in use? If you are responsible for the property taxes, then it might cost you more than current.

Be sure to keep your mineral rights on the property too.
Posted by Chingon Ag
Member since Nov 2018
2830 posts
Posted on 9/14/22 at 11:51 am to
I manage land in TX and LA with a few thousand acres that we leased for solar development. I engage counsel with significant solar leasing experience to review and revise the agreements prior to entering an easement and lease agreement. $ has been very beneficial to my clients and future removal and remediation language is a must in these agreements. I’m not a fan or solar/wind but depending on location and use this is a much better return for my clients. I hate that this is all subsidized by taxpayers. Let it stand on its own and see if it fails (it would fail).
This post was edited on 9/14/22 at 11:52 am
Posted by Diseasefreeforall
Member since Oct 2012
5565 posts
Posted on 9/14/22 at 12:01 pm to
quote:

They are locking up land with 25-30 year leases but all they are really farming is “carbon credits.” As soon as the subsidies dry up(the only thing that’s making these ventures profitable), they will vanish.

I don't agree that subsidies are going to drive the carbon market in the future because the voluntary market will keep growing. But it is important to remember that carbon is a commodity so it's prone to commodity cycles especially as supply comes online all over the world.
Posted by DeCat ODahouse
Premium Member
Member since Jan 2017
1375 posts
Posted on 9/14/22 at 12:11 pm to
quote:

has been very beneficial to my clients and future removal and remediation language is a must in these agreements.


If the company goes bankrupt how can this be assured?
Not arguing, asking. Appreciate the legal insight.

Also, even if the taxpayers will ultimately wind up remediating any sites that are despoiled by equipment/contamination left by a bankrupt company, you have to envision that the litigation will take years.

What about the opportunity cost while the landowner/heirs wait?

Shouldn't the landowner ask if the company is wiling to put up a significant amount of money in escrow account for remediation?

Again, not a lawyer and may not have terminology right.

In fact, this thread underlines how many complex out comes there are. And that no layperson could possibly think a ready-made contract could logically be in their land's best benefit.
Posted by Lugnut
Wesson
Member since Nov 2016
1441 posts
Posted on 9/14/22 at 12:12 pm to
quote:

What happens when your land is no longer taxed as agriculture and they charge at a commercial rate with lets say $10 million in improvements/equipment


This is gonna happen!
Posted by Tiger Ugly
Baton Rouge
Member since Jul 2008
14544 posts
Posted on 9/14/22 at 12:29 pm to
My family got an offer, and it was very tempting. But after some debate turned them down, we're sticking to the farming business for now.
Posted by Tarps99
Lafourche Parish
Member since Apr 2017
7536 posts
Posted on 9/14/22 at 12:29 pm to
quote:

Note: Avoided cost refers to energy production from a residence. Meaning any additional energy produced above and beyond what is used and designated to be sent to the grid will be purchased by Entergy at $0.0368226/kWh


So I buy power from Entergy at .15 a kWH, but I can only sell it back to Entergy for less than 4 cents a kWH if I had solar panels.

I knew shrimpers go screwed at the dock for selling their catch buying it for a dollar a pound while a grocery store up the road is selling fresh shrimp for 5-10 dollars a pound.

Power companies are just as greedy.
Posted by Kattail
Member since Aug 2020
3339 posts
Posted on 9/14/22 at 12:39 pm to
Don’t know if true but I’ve heard chemicals leech out Into the ground below and damage the soil, and they can be harmful to birds. I would explore other options like leasing for grazing/hay. They are everywhere here, I think they’re hideous.
Posted by curtastrophe
New Orleans
Member since Nov 2009
59 posts
Posted on 9/14/22 at 3:01 pm to
quote:

A lot of these "dudes" aren't trying to build solar farms right away, but instead are trying to get an option to put a solar farm on your land sometime between now and forever. For a very small initial option fee paid to the landowner, the landowner's land is tied up forever. The "dude" then tries to sell a bundle of these farms that he has options on to a bigger investor down the road who may be the one who ultimately puts in a solar farm. The landowner doesn't get real money until a solar farm is built.

Is the land anywhere near a high transmission electric line? If not, there is no way that they won't build a solar farm there for a long time because they have no way to transmit the electricity generated without building high transmission lines (and the associated costs of building and getting right-of-ways).


Any Solar / Wind Lease is going to have an option period of 4 to 5 years. No one is signing an option that is going to tie up their land "forever."

During the option period the landowner has the right to lease their land, farm their land, or do whatever they want with it. They get paid during all of this.

"The landowner doesn't get real money until a solar farm is built." This is correct. They get paid $20-$50 an acre for an option. They get paid money while being able to use their land as normal.

Both the landowner and lease owner want to see the lease go to the operational period. That's when they both make money. It does not benefit any energy company to option to lease land with no plans on using it.

As far as transmission lines, they are being upgraded and added all over the country. They WILL actually build Solar and Wind Farms and run new lines lines to tie into existing transmission lines.

MISO, TVA, PJM, ERCOT, SPP etc all know that transmission is the one thing holding renewables back and are actively taking care of the problems. Transmission lines are the biggest ROW business currently.
Posted by weagle99
Member since Nov 2011
35893 posts
Posted on 9/14/22 at 3:05 pm to
Can someone explain how clear cutting a forest to install a solar farm is ‘better for the environment’? Because that is happening.
Posted by 21JumpStreet
Member since Jul 2012
14655 posts
Posted on 9/14/22 at 3:08 pm to
Solar bitcoin farm baw
Posted by Bamafig
Member since Nov 2018
3166 posts
Posted on 9/14/22 at 3:14 pm to
Do solar farms produce sunflowers?
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