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Wind leases in Texas: payments, turbines, and what to negotiate

Updated September 26, 2026 · About 7 minutes

Wind leases work differently from solar leases. Turbines take up a small share of the land, cattle usually keep grazing, and payments are often tied to how much power the turbines produce. Here is what to expect and what to negotiate.

How is a wind lease different from a solar lease?

Texas A&M AgriLife notes that cattle commonly graze beneath wind turbines, so landowners can usually keep agricultural uses going while a wind lease is in place. Solar arrays, by contrast, often cover the land continuously (Texas A&M AgriLife). That difference also matters for your ag valuation; see ag valuation and rollback taxes.

How long does a wind lease last?

Wind leases usually have two phases. First comes an option or testing period, when the company measures the wind, typically for at least two years; a Texas A&M Real Estate Center attorney reported these periods averaged two to seven years, with extensions common. If the data look good, the company may move into the production period, which generally lasts 20 to 35 years, sometimes with options to extend (Texas A&M Real Estate Center, 2008).

How do wind leases pay?

Payments can be per acre, per turbine, or a royalty based on the project's revenue, or a combination (LandApp). As of 2008, the Real Estate Center reported that wind royalties in Texas averaged between 3 and 6 percent of gross revenue (Texas A&M Real Estate Center). Terms are negotiable and often confidential, so rates vary widely.

Define "gross revenue" broadly. Include as many revenue sources as possible and avoid deductions for costs (Real Estate Center).
Set payment timing in the lease. Unlike oil and gas royalties, wind royalties have no statutory protection for when they must be paid (Real Estate Center).
Ask for a minimum royalty, such as a minimum per turbine or per acre, so you are paid even in low-wind or low-price years (Real Estate Center).

What should the company pay for on the surface?

A wind company has no automatic right to use your surface; its rights come only from the lease. That means you can negotiate payments for each use, including turbine sites, construction areas, roads, above- and below-ground lines, substations, and maintenance buildings, plus lost hunting, grazing, or irrigation use (Real Estate Center). You can also require your consent to the location of each turbine and building, and restoration afterward.

Clauses that protect you

A height limit. A "horizontal severance" clause limits the lease to a set height, such as the first 300 or 400 feet, so future technology at higher elevations needs a new agreement (Real Estate Center).
Land released if unused. A "vertical severance" clause limits how much land each turbine holds, or releases acreage without turbines after a set time (Real Estate Center).
Copies of the wind data collected on your land, useful for any future lease (Real Estate Center).
Taxes and rollback. The company should pay taxes on its equipment and any rollback or added taxes if your ag valuation is lost (Real Estate Center).
Limits on assignment while the company owes you money or is in breach (Real Estate Center).

Who removes the turbines?

For wind leases signed on or after September 1, 2019, Texas law requires the company to remove its facilities at the end and to provide financial assurance, such as a bond or letter of credit, no later than the earlier of the lease ending or the 10th anniversary of commercial operation. The amount is based on an independent Texas-licensed engineer's estimate of removal and restoration costs, minus salvage value (Texas A&M AgriLife; HB 2845 bill analysis). That is earlier than the 20th-anniversary deadline for solar leases; see Texas decommissioning law.

Check a spot

Click your land on the map to get its free land report: flood zone, wetlands, nearest power line, soils, survey location, and the half-mile, 500-acre standout test. In Texas, parcel acreage fills in automatically.

Questions to ask before you sign

How long is the testing period, and what does it pay each year, including extensions?
How is the royalty calculated, what counts as gross revenue, and is there a minimum?
What do you pay for each turbine site, road, line, and substation?
Do I approve turbine and road locations?
Is there a height limit, and is unused acreage released?
Will I get copies of the wind data?
What financial assurance will you post for removal, and when?

The Real Estate Center article cited here is from 2008; its figures show the range at that time, not current rates. General information, not legal advice. Have a Texas attorney review any wind lease.