Solar Farm Lease Agreements

The rapid expansion of the solar industry is the result of two main factors: government programs such as the Investment Tax Credit (ITC) and lower photovoltaic (PV) prices – both contribute to solar developers seeing a much faster return on their investments, making solar development a much more lucrative prospect. While it is possible to contact a solar developer on its own initiative, it is more likely that a solar developer will contact you first. If you have any further questions regarding questions regarding solar land use contracts, please contact Scott Storey at 517.371.8159 or sstorey@fosterswift.com. Solar power is on the rise in America: according to the Solar Energy Industries Association (SEIA), solar installations were the largest source of new power generation capacity in the United States in 2016 and beat other green energy competitors such as natural gas and wind.1While, the United States has seen more than 10.5 gigawatts (10,500 megawatts) of solar installations across the grid. Total photovoltaic capacity is increased to nearly 40 gigawatts.2This capacity firmly places the United States as the world`s fourth largest solar power (behind China, Japan and Germany), but things are on track because it is reported that an additional 12 GW of solar capacity is expected to be put into service this year.3This rapid development of solar energy has created considerable financial opportunities for both landowners and farmers. as the solar economy has become increasingly valuable over time. In addition, it is essential to discuss what will happen to the solar installation once the lease is complete, as many landowners may wish to return it to its original state, which can be an extremely expensive undertaking if it occurs unaided. 1. www.seia.org/research-resources/solar-market-insight-report-2016-year-review2. e360.yale.edu/features/northern-lights-utility-scale-solar-power-spreading-across-the-us3. interestingengineering.com/top-10-performing-countries-for-solar-energy5. arstechnica.com/science/2017/02/for-a-brighter-future-science-looks-to-re-energize-the-common-solar-cell/6 www.solarmango.com/ask/2015/10/23/what-type-of-land-is-suitable-for-solar-farm/ 3. ConfidentialityThe leases and rental options contain confidentiality clauses that apply to all terms of the contracts, including financial terms and even the identity of the solar company.

Therefore, once an agreement is signed with a confidentiality clause, it may constitute an infringement on the terms of the contract. It is certain to say that if the property in question is too far removed from the necessary infrastructure, or if the infrastructure simply does not exist, it is very likely that the property will be declared unfit for the development of a solar farm.

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