A Solar Land Lease Is Step One Toward Securing A Power Purchase Agreement For A Solar Farm Project

There are many activities underway within the California legislature, California PUC, and also at the big three utilities to enable solar power farms in the 1-20MWp range. Additionally, the California Renewable Energy Transmission Initiative reflects many more projects greater than 100MWp. Commercial Solar Design realizes the required 33% renewable energy generation mandate from the Governor of California helps make this type of Solar PV farm viable in the short and long-term. This information is focused on 20 MW solar farm projects using 140 or more acres.

Most solar farm development groups try to find a suitable piece of land and offer a solar land lease for the property. Many owners are not interested in selling but evaluate leasing. Upon close inspection the landowner discovers that the lease strategy is not so great.

A solar land lease decision ties up your property for 3 years and then if the project funds another 25 years at a fixed price. Since many utility rate contracts don't offer an escalator many solar land lease don't offer one either. The solar farm groups want to increase their earnings at the expense of the landowner. After three or four years the property owner tires of the lease but is stuck for the remainder of Twenty years.

There is a different program that addresses this problem in several ways as discussed in this outline.

The property owner participates directly with Commercial Solar Design like a co-developer. Owner's involvement includes a modest $550-775K to cover permitting, application expenses and other costs. The majority of this expenditure is a utility down payment of $20K/MW requested. Ex. 20MWp application requires $400K deposit.

Just about the most important parts of the program could be the legal framework and specialized work necessary to compliment the initial development work so a project can become shovel ready. By working together the property owner keeps cost down but more importantly participates in the benefit of the project well over and above an easy lease payment.

When the project is close to obtaining a power purchase agreement it's offered to investment groups who are positioned to invest however not operate the solar farm project. These groups come in and do the heavy-lifting financially by providing the development funds etc. The key to any project is to obtain the permitting to construct and a power purchase agreement.

When the project funds the property owner receives his original investment outlay back 2x. The land lease is negotiated at an attractive rate and the property owner receives an equity position in the project. The future equity position is of great value but could be also negotiated as a onetime net present value buyout.

Yet another option for 20MWp solar farms includes the scenario in which the land is held by a person or investor group who fund the entire project in house. Commercial Solar Design provides turnkey solutions from permitting to interconnection and ongoing operations and maintenance.

90% Of Photovoltaic Projects May Not Get Funded. Learn How To Develop An Investment Friendly Solar Energy Venture
A solar farm consultancy provides a complete package of solar farm investor and developer professional services. Investors or developers in need of solar farm professional services can contact Solar Land Partners to learn how to get your solar farm project completed successfully.

Solar Energy Farms Face Difficult Issues In Connection With The Williamson Act Planning To Satisfy AB32 Goals And Objectives
Solar projects typically have a hard time satisfying the Williamson Act's compatibility principles because of the large percentage of land occupied by the solar improvements. At least a few counties allow solar energy projects to be developed on non-prime agricultural land with conditional use permits.

Easy Instructions To Simplify Solar Panel Set Up
Though solar panel installation might cost you some money initially, the expenses would surely pay itself over time. Prices usually differ but the average fee for the installation is between $9 and $11 per watt.

Solar Lights Provides An Extremely Effective And Complementary Lighting Source.
Solar energy has existed for a long time nevertheless in the past because of the lesser technology and expense solar energy was really a business oriented product or service.

U.S. Renewable Energy Strategy - A Byzantine Mix Of Tax Benefits, Discounts, State Government Mandates, Limiting Solar Farm Investment.
Well-heeled interest groups tend to dominate renewable energy discourse, and American energy policy reflects their paradigm of centralized generation dependent on high-voltage transmission lines.

Solar Lights Can Provide A Very Efficient And Renewable Light Source
Solar power has been around for years however in the early days owing to the lesser technology and cost solar power was very much a commercial product.

Know The Way Solar Power Electricity Is Effective
Solar electricity, having been dubbed as the most natural way of acquiring energy, gets its power from the brightest, hottest star known to man.