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Solar Lease, for real?

Posted on 7/16/25 at 8:55 pm
Posted by Dallaswho
Texas
Member since Dec 2023
3397 posts
Posted on 7/16/25 at 8:55 pm
There is a large solar developer interested in my land up in Missouri.
Anyone go through this before?
I don’t want to get my hopes up as I don’t know how much potential land they’re considering, but they’re talking 25-35% of what my land is even worth every year for 20+ years, not that I’m looking to sell, but this seems too perfect. Anyone been through this? What are the chances I score a big deal after the 3 year option period? I’m about a mile from a rural substation and have 80% tree coverage.
Posted by DownshiftAndFloorIt
Here
Member since Jan 2011
71022 posts
Posted on 7/16/25 at 8:57 pm to
Sounds like a good opportunity to make some quick cash and then end up with 180 acres of busted up useless solar panels and permanently fricked up property.
Posted by Dallaswho
Texas
Member since Dec 2023
3397 posts
Posted on 7/16/25 at 9:15 pm to
They’re obviously bonded.
Posted by Rize
Spring Texas
Member since Sep 2011
18696 posts
Posted on 7/16/25 at 9:20 pm to
quote:

There is a large solar developer interested in my land up in Missouri. Anyone go through this before? I don’t want to get my hopes up as I don’t know how much potential land they’re considering, but they’re talking 25-35% of what my land is even worth every year for 20+ years, not that I’m looking to sell, but this seems too perfect. Anyone been through this? What are the chances I score a big deal after the 3 year option period? I’m about a mile from a rural substation and have 80% tree coverage.


We are in year 2 of the option period. Not sure what’s going to happen but if it does they will be bulldozing 405 acres. Bought the 135 acres next door to see if we could lump it in but they only wanted 20 acres of it so we decided to move the shop and house to the new property if it goes through.

May use the money coming in to buy a new ranch down the road and make the payments. That or get a a nice lease and use the money to pay for it.

Have an attorney review everything. Had a couple companies over the years and the first ones the price was way lower, then they got really high but the clean up clauses weren’t as good as the company we went with.
This post was edited on 7/16/25 at 9:23 pm
Posted by Dallaswho
Texas
Member since Dec 2023
3397 posts
Posted on 7/16/25 at 9:59 pm to
Good idea. My land is rocky, heavily forested with mostly junk trees, and not flat, but the slopes face south and west which is ideal for slopes I guess. I don’t know what to expect but want to keep expectations low. I didn’t know solar was even a possibility around there but the new Big Beautiful Bill plus low income area incentives make it a half-price gamble for them.
Posted by bbvdd
Memphis, TN
Member since Jun 2009
28111 posts
Posted on 7/17/25 at 12:08 pm to
Your biggest concern is if the government does away with the subsidies to producers.

Solar is absolutely not profitable without them. Another concern is if the panels will be hit by the tariffs or not.

If they put panels on your place and subsidies go away, then you'll have a bunch of panels and concrete on your land without anywhere to go with it.
Posted by Pezzo
Member since Aug 2020
2868 posts
Posted on 7/17/25 at 3:13 pm to
there is a large solar company pushing to build a solar farm in the city i grew up in. the land was originally cane fields and there is a neighborhood bordering it. those home owners are not happy abut it and have been showing up to recent council meetings pushing to have them stop it. i dont blame them. i wouldnt want to live next to a solar farm.
Posted by lgtiger
LA
Member since May 2005
1455 posts
Posted on 7/17/25 at 3:58 pm to
Better have an ironclad contract for them to return your land to something close to something other than a toxic waste dump it they go tits up or a tornado comes through and spreads toxic compounds on your land.


I think solar is not a profitable venture long term. Bunch of venture capitalist throwing money at putting together deals hoping to score a portfolio of land assets that they hope big industry buys their interest out.

Putting this on good farmland ( I know yours is not ) should not be allowed
This post was edited on 7/17/25 at 4:01 pm
Posted by KemoSabe65
70605
Member since Mar 2018
6362 posts
Posted on 7/17/25 at 4:22 pm to
Solar is a Grift paid for by taxpayers.
Green energy does not and will not ever exist.
Posted by billjamin
Houston
Member since Jun 2019
16648 posts
Posted on 7/17/25 at 9:53 pm to
There’s a really low chance that it would get developed especially with the current state of the industry.
Posted by billjamin
Houston
Member since Jun 2019
16648 posts
Posted on 7/17/25 at 9:55 pm to
quote:

Your biggest concern is if the government does away with the subsidies to producers.

Solar has never used long term subsidization. It’s all taken at interconnection. Once the asset is there it’s not getting abandoned. These things are cash cows once they’re built.
Posted by bbvdd
Memphis, TN
Member since Jun 2009
28111 posts
Posted on 7/18/25 at 10:00 am to
quote:

Solar has never used long term subsidization.


That's not true.

quote:

Duration of subsidies for solar farms
The duration of subsidies for solar farms depends on the type of subsidy and the jurisdiction offering it.
Here's a breakdown of common subsidy types and their typical durations:
Federal Investment Tax Credit (ITC)
The federal ITC provides a tax credit for a percentage of the installation costs of solar energy systems.
For residential solar installations, the 30% credit is currently available until December 31, 2025.
For commercial and utility-scale projects, the 30% ITC remains for projects that began construction by July 4, 2026, or are placed in service by December 31, 2027.
Projects may also qualify for the four-year safe harbor, allowing completion as late as 2030.
Other government incentives
State and local incentives vary greatly in duration and type, including property tax exemptions, rebates, and grants.
Net metering, a program that allows solar owners to receive credits for excess electricity sent back to the grid, may also be available.
Renewable Energy Certificates (RECs), which are tradable credits representing a unit of electricity generated from renewable sources, are also a source of revenue for solar farms.



Plus you have panel degradation and Trump has put 3000%+ tariffs on panels from Asia.
Posted by mdomingue
Lafayette, LA
Member since Nov 2010
42511 posts
Posted on 7/18/25 at 11:21 am to
quote:

home owners are not happy abut it and have been showing up to recent council meetings pushing to have them stop it. i dont blame them. i wouldnt want to live next to a solar farm.



I think I'd rather live next to a solar farm than a cane field. But I can the other side of it.

Either way, you're next to something heavily dependent on federal subsidies.
Posted by billjamin
Houston
Member since Jun 2019
16648 posts
Posted on 7/18/25 at 12:40 pm to
quote:

That's not true.

Yes it is. You're not going to be able to use chat GPT to explain this to me. I've been doing project finance for energy deals for 10 years.
quote:

Plus you have panel degradation and Trump has put 3000%+ tariffs on panels from Asia.

Degradation is built in the financial model. Tariffs will only hit the FOEC and a few others. Premium on US modules is already here.

My point still stands. Once a project is PTOd there is an almost zero chance it gets abandoned. Because the only subsidy anyone gives a shite about is the ITC and thats taken at PTO. There are back-up servicers in place to make sure the PPA contract is fulfilled.

Also for funsies, lets tear this up
quote:

Duration of subsidies for solar farms
The duration of subsidies for solar farms depends on the type of subsidy and the jurisdiction offering it.
Here's a breakdown of common subsidy types and their typical durations:
Federal Investment Tax Credit (ITC)
The federal ITC provides a tax credit for a percentage of the installation costs of solar energy systems.
False its on FMV
For residential solar installations, the 30% credit is currently available until December 31, 2025.
Means absolutly nothing for a solar farm
For commercial and utility-scale projects, the 30% ITC remains for projects that began construction by July 4, 2026, or are placed in service by December 31, 2027.
Still means nothing for a solar farm
Projects may also qualify for the four-year safe harbor, allowing completion as late as 2030.
Lulz safe habor isn't a subsidy its a procurement strategy.
Other government incentives
State and local incentives vary greatly in duration and type, including property tax exemptions, rebates, and grants.
So meaningless they don't even hit the financial model
Net metering, a program that allows solar owners to receive credits for excess electricity sent back to the grid, may also be available.
NEM doesn't apply to solar farms.
Renewable Energy Certificates (RECs), which are tradable credits representing a unit of electricity generated from renewable sources, are also a source of revenue for solar farms.
RARELY if ever applicable to solar farms and REC are private contracts with utility companies.
This post was edited on 7/18/25 at 12:55 pm
Posted by slidingstop
Member since Jan 2025
1702 posts
Posted on 7/18/25 at 1:12 pm to
quote:

They’re obviously bonded.


so if they go tits up and are no longer in business, are you covered? Cause all the money they pay you won't matter if you have to remediate the land and they are out of business.
Posted by slidingstop
Member since Jan 2025
1702 posts
Posted on 7/18/25 at 1:16 pm to
quote:

I think I'd rather live next to a solar farm than a cane field.



the four or five solar farms they have in our area are absolute eyesores. Give me that cane field all day long. I suppose a housing project would be worse, but the solar farms I've seen are hideous.
Posted by billjamin
Houston
Member since Jun 2019
16648 posts
Posted on 7/18/25 at 1:18 pm to
quote:

so if they go tits up and are no longer in business, are you covered? Cause all the money they pay you won't matter if you have to remediate the land and they are out of business.

The developer may go tits up but they're never the asset owner. Thats going to be a big bank or PE firm. They'll get someone to step in and finish or operate the project. They still want the ROI on that 35 year PPA.
Posted by slidingstop
Member since Jan 2025
1702 posts
Posted on 7/18/25 at 1:20 pm to
does the asset owner bare responsibility for land remediation or cleanup if something happens to the panels and damages the property?
Posted by mdomingue
Lafayette, LA
Member since Nov 2010
42511 posts
Posted on 7/18/25 at 1:25 pm to
quote:

Give me that cane field all day long


Burning cane, dust, rats, and snakes are what you get with a cane field. I guess you still get the rats and snakes with the solar farms.
Posted by billjamin
Houston
Member since Jun 2019
16648 posts
Posted on 7/18/25 at 1:29 pm to
quote:

does the asset owner bare responsibility for land remediation or cleanup if something happens to the panels and damages the property?

There's some nuance with differing states and liability limits but they all have internal reserves for replacement and remediation. Typically damage would be if a panel went flying in a storm and hit something. I've actually consulted on a case where that happened. The other things people freak out about like leaching isn't a real thing with modern PV modules.
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