The Smart Farmer's Guide to Evaluating Solar Lease Offers
So you've received a solar lease offer. The numbers look attractive, but how do you know if you're getting a fair deal? Smart farmers don't just look at the headline payment amount. They dig deeper to understand the full picture. Here's your guide to evaluating solar lease offers like the savvy business owner you are.
Understanding the Basics: What Are You Actually Signing?
Before diving into the financial details, make sure you understand exactly what you're agreeing to. Solar leases typically involve:
Land use rights: The developer gets exclusive use of specified acreage
Access rights: They need access for construction, maintenance, and operations
Duration: Most leases run 25-30 years with possible extensions
Development timeline: When will construction begin and end
Key Financial Terms to Evaluate
Annual Lease Payments. This is the obvious starting point, but don't just compare the dollar amounts. Consider:
Payment per acre: Is this competitive for your area?
Escalation clauses: How much will payments increase over time?
Payment schedule: Annual, semi-annual, or quarterly payments?
Guaranteed minimums: Are there baseline payments regardless of energy production?
Comparing Your Options
Against Current Land Use: Calculate your current net income per acre from farming:
Gross revenue minus all input costs (seed, fertilizer, fuel, equipment, labor)
Factor in your time and management costs
Consider years when you might lose money due to weather or market conditions
Against Other Lease Offers: If you've received multiple offers, compare:
Total payment over the lease term
Escalation rates and timing
Flexibility in land use restrictions
Developer reputation and financial stability
Critical Contract Terms Beyond Money
Land Use Restrictions: Understand what you can and cannot do with the leased land:
Continued farming: Can you graze livestock or grow crops between panels?
Hunting and recreation: Are these activities still permitted?
Future development: What happens if you want to build or expand?
Developer Responsibilities: Make sure the contract clearly outlines:
Maintenance obligations: Who maintains roads, fencing, and landscaping?
Liability coverage: What insurance does the developer carry?
Decommissioning: How will the site be restored at the end of the lease?
Your Rights and Protections: Look for provisions that protect your interests:
Termination clauses: Under what circumstances can you end the lease?
Default provisions: What happens if the developer fails to meet obligations?
Assignment rights: Can the lease be sold to another company?
Making the Final Decision
Align with Your Goals: Choose the offer that best supports your objectives:
Financial security for retirement
Funding for farm improvements
Legacy planning for future generations
Trust Your Instincts: Work with developers who:
Communicate clearly and honestly
Respect your time and decisions
Demonstrate a genuine partnership approach
Working with Fellowship Solar Energy
At Fellowship Solar Energy, we believe in transparency and fair dealing. We provide:
Competitive lease terms based on real market data
Clear, understandable contract language
$300 toward legal review of our agreements
Ongoing support throughout the lease term
We're not just looking for land—we're looking for partners. We succeed only when you succeed, and we're committed to building relationships that benefit everyone involved.
Ready to explore your options? Contact Fellowship Solar Energy today to discuss how we can structure a solar lease that meets your specific needs and goals.