Why don't solar companies just buy the land?
Short answer: most proposed projects are never built, so developers hold many sites with options and leases while they find out which ones work.
Most projects never get built
Signing a lease agreement does not guarantee a project. Companies often sign options with many landowners and then choose the sites that fit best (National Agricultural Law Center). ERCOT's own list shows how many projects are still in study at any time; see the ERCOT page.
The option period is the study period
During an option, typically three to five years, the company studies feasibility and works to secure an interconnection agreement and a buyer for the power (Phelps). An option lets it control the land for that time without the cost of buying it.
What it means for you
- Ask to be paid during the option period, since the project may never be built (National Agricultural Law Center).
- Keep the option period short; development-phase payments are usually lower (Texas A&M AgriLife).
- You keep ownership, and if the option expires unused you keep what you were paid.
Related questions
General information from the sources linked above, not legal, tax, or financial advice.