Much like how your crops harness the power of the sun to create energy and grow, solar power harnesses the sun’s energy to create electricity through photovoltaic (PV) panels, which can be set up anywhere, from large fields to rooftops. These panels need little maintenance and are recyclable when they’re no longer operational.

Wind energy harnesses the natural kinetic energy in the wind to generate electricity. It is a clean and renewable resource that is becoming increasingly important in today’s energy landscape. This process involves the use of wind turbines; towering structures with blades that rotate when caught by the wind. These turbines can be installed in a variety of settings, from vast, open plains to hilltops and coasts, making wind farms a common sight in regions known for strong and consistent winds.

Battery energy storage systems (BESS) play a crucial role in modernizing the energy grid and enhancing the efficiency and reliability of renewable energy sources like solar and wind. BESS are what make solar and wind energy a reliable solution for energy independence even when the sun isn’t shining or the wind isn’t blowing. These systems store excess electricity generated during peak production times, such as sunny or windy periods, and release it when demand is high or production is low, ensuring a steady and balanced supply of power. As the adoption of renewable energy grows, BESS has become increasingly important for stabilizing the grid and making renewable energy sources more viable and dependable.

Utility-scale clean energy power projects are massive undertakings designed to generate electricity on a large scale, typically feeding into the grid to power homes, businesses, and industries. These projects differ significantly from community or residential projects in several key aspects.

The business model of clean energy companies, covering wind, solar, and battery storage, is complex, yet essential. They generate electricity using renewables and sell it to utilities or directly to the grid. Revenue primarily comes from selling electricity and balancing costs, and regulatory compliance.

One of the most appealing aspects of leasing farmland for solar or wind projects is the opportunity to generate a stable and predictable income over the lease term, which can often span 20 to 30+ years. This can be particularly beneficial in providing financial stability through diversification beyond traditional farming revenues which can vary based on weather events, global markets, or the costs of maintenance and labor. This can also provide you the opportunity to plan for your children or grandchildren’s future and the legacy you will leave them.

Depending on the location, quality of the land, and other factors, leasing land for solar or wind projects might not always offer the highest financial return compared to other uses or investments.  However, this profitability concern is usually offset by the knowledge that a landowner will receive a steady income stream regardless of drought or other negative factors that can affect harvest yields.

If a renewable energy developer approaches you about leasing your farmland for a wind or solar project, it opens up an interesting conversation not just about leasing, but potentially about selling your land.

Key considerations for negotiation include lease payments, community benefit agreements, maintenance and finance costs, flexibility and future adjustments, land usage, and more.

Leasing land for solar or wind energy requires a long-term commitment, with leases typically lasting 20 to 30 years.

From the beginning of the project feasibility stage to the time when a solar or wind project might be operational on your land, it could take an average of anywhere from 13-33 months. That being said, every situation is different and delays are possible at every stage.

Each phase of the renewable energy project lifecycle brings its own set of activities and impacts on your farm. Being prepared and informed at each step ensures that you can maximize the benefits of hosting a renewable energy project while minimizing disruptions to your agricultural operations.

Some land will be taken out of production for Wind and Solar. With wind, a small amount of land is needed for the base of the tower. More land is needed for the construction of an access road to allow trucks and cranes to construct and maintain this tower. Typically, one acre of land will be taken out of production per wind turbine.

Solar will remove a greater amount of land from production than wind but this has improved with technology. By using current, more efficient solar panels it is estimated that 10 acres of land will generate 1 MW of electricity. What this means for land owners is that they can lease a portion of their land to solar energy and continue to farm traditionally on the rest of the land.

In reality, very little farmland is needed for solar projects and only 0.6% of existing farmland would be required for solar farms to power 45% of the American grid.

Once a project is constructed, perennial vegetation is usually planted underneath the panels to stabilize soils and retain stormwater. Solar facilities can be decommissioned at the end of their life, with localities requiring developers to post bonds guaranteeing enough finance to cover decommissioning costs. Once equipment is removed and soil decompacted, the land can be used for traditional farming  again.

A Most Favored Nation clause provides legal and financial protection to land owners in a specific development area. In essence, if a solar farm developer  is utilizing land from multiple landowners and raises an annual payment for a single land owner by 10%, each and every landowner who is participating in this project will have their financial terms improved by this same amount. This clause helps to ensure that all landowners in a specific area are receiving equitable terms from a developer.

Depending on the improvements done at the time of leasing, potential buyers may see the clean project as an encumbrance or an enhancement to the land. It may not necessarily add value but it does limit your buyers. Whilst, transferring the property is easy – the lease contract would typically include language in it about notifying the developer when it is vested in some way. That said, if there are improvements on the property with an associated revenue stream, that certainly adds value for a certain type of buyer.

While solar and wind energy are clean sources of power, the installation and decommissioning processes can have environmental impacts. For instance, large solar farms may disrupt local ecosystems, and wind turbines can pose risks to bird and bat populations (albeit minimal when compared to impacts of cats, windows and cars) if not properly sited. Federal law requires that extensive studies must be conducted to reduce any impact on bird or bat populations before construction begins.

Every community with renewable development will have neighbors that are pro-development and neighbors that are anti-development. It is in a developer’s best interest to have as much landowner participation in a project as possible. For example,  landowner A may allow a wind turbine to be built on their land and the neighbor, Landowner B may decline development of a turbine on their land. In this situation, the turbine will be built on Landowner A’s land, following all mandated set-back requirements.

Some community members may have concerns about the visual impact of solar panels or wind turbines, which can lead to disputes or opposition. The presence of large-scale energy projects can also alter the character of rural areas. Wind turbines are typically 200 feet tall and will change the landscape in rural areas. However, this needs to be weighed against the visual impact of pump jacks or oil and gas pipelines.

Property taxes and increases thereof, due to the construction of a renewable energy site, are typically paid directly by the developer to the taxing authority. Most often, a wind turbine or solar array will be assigned its own Parcel Identification Number for tax payment purposes. These tax amounts go directly to a specific county and are viewed as a positive contribution to county coffers. 

While solar and wind energy are clean sources of power, the installation and decommissioning processes can have environmental impacts. For instance, large solar farms may disrupt local ecosystems, and wind turbines can pose risks to bird and bat populations (albeit minimal when compared to impacts of cats, windows and cars) if not properly sited. Federal law requires that extensive studies must be conducted to reduce any impact on bird or bat populations before construction begins.

Wind turbines will kill a small amount of birds per year. However, studies have shown that automobiles, house cats, and office buildings with glass windows kill substantially higher amounts of birds in comparison. The blades of a wind turbine rotate at roughly 40 miles per hour and birds can typically avoid moving objects of 70 miles per hour or lower.

The fact is, studies have shown that utility-scale wind turbine noise is typically below the 55-decibel (dB) threshold set by the World Health Organization (WHO) for preventing significant community annoyance. For instance, a study by the Massachusetts Clean Energy Center found that wind turbine noise levels generally ranged from 35 to 45 dB at a distance of about 300 meters, which is the closest these turbines are typically placed to homes. Another study conducted in Denmark revealed similar findings, with most noise measurements falling well within acceptable limits, even closer to residential areas. Learn more.

Prolonged exposure to electromagnetic Fields have been shown to cause cancer in humans.  However, solar panels emit extremely low levels of EMF radiation. Household appliances like your microwave will emit more EMF radiation than solar panels.

Studies have shown that land with renewable facilities sells for a higher price than land without renewable facilities. This is due to the guaranteed income provided by their respective wind turbines and solar panels.

Lithium Ion storage batteries do have a slight potential to catch on fire. However, the renewable energy industry is well aware of this risk and a good developer will have required due-diligence in place including, automatic fire extinguishing systems, 24-hour monitoring, and incombustible design elements, exploding batteries are a rare occurrence.

Learn about the Pros and Cons.