What Landowners Need To Know About Solar Leases

Summary

• Landowners are increasingly approached by developers for solar energy leases, a trend bolstered by favorable government policies toward renewable energy.
• Solar leases involve long-term commitments, often spanning 50 years or more, necessitating thorough due diligence by landowners before signing.
• The lease terms can significantly restrict landowners' use of their property, both during the option and lease periods, with potential impacts on adjacent land as well.
• Payment structures, tax implications and decommissioning responsibilities are critical elements that landowners must carefully negotiate and understand.

More and more landowners are being approached by developers seeking to lease their properties for the development of solar energy facilities—a trend that will continue as state and local government policies become friendlier to renewable energy sources. If approached regarding a solar lease, there are many things landowners should