Solar Farm Land Lease Rates Australia

On average solar rental fees will fall somewhere around 700 to 3 000 an acre.

Solar farm land lease rates australia.

If the soil is decent and there is no infrastructure such as buildings municipal water fencing etc. In general cropland rental rates are higher than hay and pasture land. You may be tempted to shop around for the highest lease rate but beware. The solar company may only end up leasing a portion of the property and then as a land owner you could be left with two small fields with a solar farm in the middle.

The cost of land for 1 mw plant will therefore translate to 2 500 per month on average. If the land lease rate is too high then the project cost increases. As always i highly recommend that landowners consult an experienced attorney to review any lease agreement including a solar lease before it s signed. I ve been contacted by a company wanting to enact a solar lease on my land.

Companies are advertising in farm magazines in an attempt to coerce landowners to sign up their land for solar. However pinning down an exact figure of what land should rent for can be a challenge for landowners because of the wide range of data found on the internet. On average 1 acre solar farm cost about 500 per month to lease in the united states. The above cost is non inclusive of the license fees and value of the land.

The popularity of solar leases has increased significantly in the last year. For example the solar farm land requirements for a 1 megawatt solar plant is around 5 acres. As stamford texas attorney james decker explained we re still early in the era of solar energy development in. What issues do i need to be aware of.

A solar farm lease can potentially unlock long term income without all the hard work and financial risks associated with farming. Benefits leasing land for the development of a solar farm can provide land owners with 20 30 years of guaranteed annual income with no upfront investment or ongoing farming costs. Determining the value of a solar farm lease rates usually comes down to a two step process consisting of an evaluation of the land itself and the actual lease negotiation. Solar farm land lease rates in the right locations solar is one of the most profitable uses of rural land.

Opportunities exist to make major income from solar leases as companies advertise lease rates of 800 to 1 200 per acre annually. Solar lease rates are almost always based on both the quality and the quantity of the land assigned to the lease. Like we ve mentioned before rental fees are determined by how profitable the location will be once the solar project has been completed. Depending on field access one of those smaller fields may no longer be accessible if a solar project is constructed in the middle of the existing large field.

How are solar farm land lease rates determined. A reasonable cropland lease rate might be 75 per acre year.