So many people are “experts” about solar fields, contracts, ag land it covers, generation, blah blah…yet most of those “experts” haven’t ever been through a solar land parcel lease agreement or any other side of the situation. They base their information on what Jimmy told them at coffee last week, or what they saw on a biased news site sandwiched between 18 unrelated advertisements (as a dead giveaway it’s BS).
The reality is that there is no “one way” solar is managed or land is acquired. We have been approached with two contracts from completely different companies about it. It isn’t “all” on productive ag land, nor is it “all” on unproductive land.
We were approached by Company A about an outright sale of 11 acres of land for a solar project. They were up front with their intentions, showed us other projects, detailed all the different core samples, sight lines, etc that would be associated with the project. This was on land that was 100% tillable and was definitely productive.
Company B approached us with a land lease agreement. We essentially would lease 8.4 acres to this company for 25 years for a set annual amount (that was negotiable and had an inflation adjustment every 3rd year). This was presented to us as a 25 year lease and at the end we’d be responsible for everything. They had programs where we would be incentivized to invest ~35% of the income generated and that would help pay for the removal/disposal 25 years from now. This land was also mostly productive ag land, but does deal with water issues in a wet year (maybe once or twice a decade on average).
Ultimately we turned down both offers. The outright sale was well beyond the going rate per acre of tillable land. The lease agreement was presented in a thoughtful way but we have had no interest in this type of project at any point. This isn’t to say all solar is bad or good, or anything else. It simply wasn’t something we were interested in.
I did ask both groups why we were chosen, and they simply said that they are looking for 2 things:
1. Project areas that offer the most probable return on investment for their company (mainly due to proximity of areas of need or current infrastructure) regardless of whether it’s ag land or not.
2. Land parcels that are large enough that they only involve a fractional sell off. They rarely seek out pieces that are all one person or group owns. Their likelihood of scoring a contract is much higher with segments of large parcels.
We will likely be putting banks of solar panels on our home’s roof in the near future…so we’re not “anti alternative energy”, but no solar panels will be going in our dirt.