Is my solar lease offer fair? How to compare offers
Short answer: judge the whole deal, not the headline rate: what it pays during the option period, the rent after construction, the yearly increase, how long it runs, and who pays taxes and removal.
Why it is hard to know the going rate
Solar leases often include confidentiality clauses that bar landowners from sharing payment amounts and terms (Silberman Law Firm). That is why published figures come mostly from developers and marketplaces. For typical Texas ranch or farm land, expect a few hundred dollars per acre per year; see what Texas solar leases pay.
The first offer may not be the best
University of Wisconsin Extension advises that the first offer may not be the best one, and that landowners do their homework before negotiating (University of Wisconsin Extension). If several developers are active in your area, compare them; your county page lists companies with proposed projects nearby.
Compare these, side by side
- Payment during the option period, and how long that period can be extended
- Rent after construction, and the yearly escalator (some sources describe about 1.5% to 2.5%) (SmartEnergyUSA)
- Total acres the payment applies to
- Lease length and extensions
- Who pays rollback and property taxes
- Removal security required by Texas law
- Confidentiality, assignment, and attorney-fee clauses
Texas A&M AgriLife recommends having an experienced attorney review any solar lease before you sign (Texas A&M AgriLife).
Related questions
- A letter offers a signing bonus. Is it legit?
- Solar option agreements
- Rollback taxes
- All landowner questions
General information from the sources linked above, not legal, tax, or financial advice.