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Solar Guide for landowners

Host a solar project on your land to increase rental income while contributing to the production of abundant clean energy

Here you'll find answers to many frequently asked questions. Topics include solar basics, project footprint, ideal site qualities, lease terms, project development, timelines and more.

1. What characteristics make a good solar project site?

There are many factors to consider when evaluating a potential solar site. Some of these factors include:

  • Topography (flat or minimal slope)

  • Established road access

  • Distance to distribution lines and the substation

  • No wetlands or floodplain

  • Zoning/land use considerations

  • Utility service territory

  • State policy environment

  • Existing and historical property uses

2. What is community solar?

According to the Department of Energy, community solar is a type of project in which the project benefits flow to multiple customers including individuals, businesses, nonprofits and local governments. 

Community solar projects generate electricity that is delivered to the distribution grid. Community solar subscribers then pay for a share of the output of the project in exchange for savings on their regular utility bill. 

Community solar projects are enabled at the state level. States with major community solar programs include Minnesota, New York, Maine, Illinois, Maryland, Colorado, New Jersey, Massachusetts, Virginia, and many more.

3. What is the footprint of a community solar project?

Community solar projects are typically between 1-5 MWac. A good rule of thumb is that 1MWac = 8 acres of total project footprint. As a result community solar projects are usually between 8-40 acres depending on available space, substation capacity, setbacks, and other factors.

4. What are the components in a ground-mounted solar project?

A ground-mounted solar energy project consists of several components working together to generate electricity from the sun. The main components are solar panels, mounting structures, inverters, transformers, a monitoring system, perimeter fencing and an access road. Solar projects are closely monitored and maintained to ensure safe and efficient operation.

5. How much electricity do solar projects produce?

System production depends on many project and location specific factors. In general, a 1 MWac solar project in the U.S. will generate enough electricity for approximately 150 households. Solar is an ever increasing share of the total electricity generated in the U.S.

6. What are the steps in the solar project development process?

The development process starts with site selection. This is our specialty. Identifying high quality solar project sites can often prevent problems down the road in the process. We heavily vet all potential sites to ensure the greatest potential to reach operations.

After a specific site is selected, we work with the landowner to establish an option agreement. This provides the time to run the necessary site studies, apply for interconnection and secure the required permits and program incentives. The development process can take anywhere from 1-3 years. During the development process we bring in a financing partner to complete construction and move the project into the operations phase.

7. How long do solar projects operate?

Most solar projects have an expected life of 25 years. This is based on the equipment warranty and expected production from top tier solar panels. As a result, the land lease agreement, interconnection agreement and certain permits also have a term of 25 years. It is expected that many projects will continue to operate beyond this period, which is why extension options are often built into key contracts. 

8. What happens when the solar project is no longer operating?

At the end of the project life, all system components are removed and the land is restored to its original condition. This has become industry standard in solar leases to ensure landowners are not faced with any cleanup costs. After the system is removed, the land can be put back into agricultural production or repurposed as appropriate.

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Luke Nelson, Solar Site Origination

Phone: 612.460.7569

Email: Luke@AcreEnergy.com

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