Hosting a Solar Project

If you own tracts of land, you may consider installing a Community Solar project. Many Community Solar installations are built on capped landfills, open fields, or the roofs of warehouses. Community Solar projects in Delaware have a maximum size of 4MW. Depending on the specific technology, a general rule of thumb is that a 1 MW solar system requires 4 to 7 acres of land, so a Community Solar project in Delaware could have land needs between 16 to 28 acres not including county or municipal buffer requirements.

As a result of the acreage requirements of Community Solar, solar developers (“developers”) routinely contact landowners with an option to lease the landowners land to obtain sufficient space to develop a project.

Leases can provide extra income to landowners by turning unused or underused land into revenue generation opportunities. Leases also provide a way to preserve the land for future use.

Entering into a lease agreement is a significant decision for any landowner. Landowners should always understand the terms of the proposed agreement, how the lease will affect their property, and the right questions to ask developers.

Before entering a contract, please visit energy.gov to review frequently asked questions – https://www.energy.gov/eere/solar/farmers-guide-going-solar

Have you completed similar solar projects in my state? Can you provide references?

What land will be leased?

How long does the term run?

How is rent calculated?

Who pays for taxes and other expenses?

What if the land is mortgaged?

What protections might the solar developer’s lender want? What happens to the developer’s improvements?

Who will maintain the land?

Whom should I contact if I have questions about the lease, especially following the installation?

How will the property be treated at the expiration of the lease?

Will the leaser be transferring the rights to the property to another party at some point in the future?

Will this effect any conservation easements, property tax exemptions, or other conservation programs the land may be engaged in?

Can I still plant cover crops under the panels during the leasing period?

Will you be planting anything under the panels, such as cover crops or pollinator-friendly plants?

How will any plantings be treated under or between the panels?

Land can be reverted to agricultural uses at the end of the operational life for solar installations. The life of a solar installation is generally 20-25 years and can provide a recovery period, increasing the value of that land for agriculture in the future. Giving the soil a rest can also maintain soil quality and contribute to the biodiversity of agricultural land. Planting crops such as legumes underneath the solar installation can increase nutrient levels in the soil.

Suncast – SunCast Media has partnered with EDP Renewables to produce a special 5-part series focused on the fundamentals of the fastest growing segment of the solar industry – Community Solar. https://mysuncast.com/communitysolar

SEIA: Guide to land leases – https://www.seia.org/sites/default/files/resources/SEIA%20Guide%20to%20Land%20Leases%20for%20Solar_July%2027%202016.pdf