Solar panels have become increasingly popular in both residential and commercial use over the last decade. They are typically installed on rooftops or open ground, but there is a new type of solar panel emerging onto the market that you may not have heard of - floating solar panels. Key Takeaways: Floating solar panels, also known as floating solar farms or photovoltaics, are installed on bodies of water like lakes and reservoirs, offering an alternative to ground-mounted systems. Benefits : They increase efficiency by staying cool due to water, reduce water evaporation, and utilize unused water surfaces, making them ideal for drought-prone areas. Functionality : These panels work like traditional ones but float using buoyant materials. They convert DC to AC for grid compatibility and can be installed using modular systems for easy maintenance. U.S. Usage : Floating solar farms are present in states like California, Massachusetts, and New Jersey. They help reduce land use conflicts and costs, with the potential to generate 10% of U.S. electricity if widely adopted. Environmental Impact : They can reduce algae growth and are seen as a practical solution for renewable energy generation, leveraging unused water resources efficiently. What Are Floating Solar Panels?  Floating solar panels, also known as floating solar farms or floating photovoltaics, are solar panels installed on top of bodies of water, such as lakes, water reservoirs, ponds, and even the ocean. These panels are designed to float on the surface of the water rather than being ground mounted. Floating solar installations are used for the same purpose as traditional solar panels, primarily to generate clean energy electricity.  However, there are several additional benefits to using floating solar panels, such as increased efficiency. Ground-mounted solar farms tend to get overheated and need to be cooled to have good solar energy efficiency . Solar panels floating on the surface of the water are kept cool by the surrounding water, which helps maintain and even increase solar panel efficiency. They also help reduce water evaporation rates, which is essential for areas with drought-like conditions. How Do Floating Solar Farms Work? Floating solar panels work the same as traditional solar panels with the added function of floating on top of the water. They are connected to an inverter that converts the direct current (DC) produced by the solar panels into alternating current (AC), which is compatible with the electrical grid. The electricity generated from the floating solar panels can be used immediately, stored in batteries, or sent to the grid.  To keep these solar panels floating on bodies of water using flotation devices. These are usually engineered from high-density thermoplastic or buoyant materials, such as polyethylene or polystyrene, which are both lightweight and resistant to corrosion. The floating structure not only supports the weight of the solar panels but also includes provisions for mooring to ensure the array remains in place against wind and waves. There are various types of technology used for floating solar panels. Some companies use modular floating systems, which allow for quick and easy installation and maintenance. These systems typically use high-density polyethylene (HDPE) and are resistant to UV rays and weathering. Other companies incorporate different technologies like floating platforms and rubber mounts to support and ground the floating panels.  Where Are Floating Solar Farms Being Used in the U.S.? Several groups of people can benefit from the use of floating solar farms. One significant benefit is that they can be installed on water surfaces  that are often not utilized or have limited use. For example, landowners and companies near bodies of water can use floating solar panels to generate electricity without having to acquire more land. Also, municipalities facing drought and water shortage issues can significantly reduce the amount of water vaporization by offering floating solar farms. Currently, there are several established floating solar farms in the United States, including those in California, Massachusetts, and New Jersey. One of the largest floating solar farms is located in the Sonoma County Water Agency in California. The $8 million project comprises 4,000 floating solar panels and is expected to yield 2.7 million kWh of electricity annually.  Del-Co Water Company, a nonprofit cooperative located in north central Ohio, is proactively seeking opportunities to integrate solar power into its operations. However, the expansion of urban areas around Columbus has limited the availability of suitable land for establishing solar farms. One of the potential benefits of utilizing solar panels is the reduction in algae growth within the water bodies.  Floating solar technology has gained modest traction in the United States in recent years, and it is anticipated to gain significant momentum as more companies seek to leverage federal incentives for solar energy while circumventing land-use conflicts and high costs associated with traditional solar installations. Recent Floating Solar Project in California The floating solar project in California, inaugurated in 2024, is located on several reservoirs managed by the Westlands Water District in the Central Valley. This ambitious project, with a total capacity of approximately 150 megawatts (MW), ranks among the largest floating solar installations in the United States. The technology involves solar panels mounted on floating platforms made of high-density polyethylene (HDPE), which are anchored to the reservoir beds, allowing the panels to float on the water's surface. The project brings several significant benefits. It helps conserve water by reducing evaporation from the reservoirs, which is a crucial issue in the arid Central Valley. Additionally, the floating solar arrays are projected to generate around 250,000 megawatt-hours (MWh) of electricity annually, contributing to local energy needs for both communities and agricultural operations. The presence of water beneath the solar panels also helps cool them, potentially enhancing their efficiency compared to traditional land-based installations. Environmental Considerations : Mitigates land use impacts by utilizing existing water bodies instead of converting agricultural or natural land. Contributes to water conservation by reducing evaporation from the reservoirs. Collaborative Effort : Involves Westlands Water District, renewable energy companies, and various local stakeholders. Benefits from state and federal incentives for renewable energy development. Overall Impact : Demonstrates how innovative solutions can address multiple environmental and resource challenges simultaneously. According to research conducted by the Department of Energy's National Renewable Energy Lab (NREL), incorporating floating solar systems into even a small fraction of the country's lakes, ponds, and reservoirs has the potential to generate 10 percent of the current electricity production in the U.S. The NREL assessed over 24,000 man-made water bodies suitable for floating solar installations, many of which are located in regions characterized by high land costs and electricity prices. Floating solar panels are an innovative solution that can provide renewable energy generation, save water, and allow for efficient use of otherwise unused water . The technology used allows for greater efficiency and a practical method for generating electricity for affiliated electrical grids or stored for later use. It's an option for landowners and companies to have a way to generate electricity by taking advantage of the surplus and otherwise unused natural resources.

Adam Smith is credited with the quote “Land is the Basis of all Wealth”. And we know a few railroad companies that would agree. In a recent oil and gas leasing class, we discussed different types of oil and gas mineral ownership in the United States, such as Federal, State, Tribal, and private ownership. And a couple of examples of private mineral ownership would be individuals, companies, universities, and railroads. A gentleman in the room from Cheyenne, Wyoming, said he was familiar with the Union Pacific Railroad Company (UPRC) and wanted to know if they owned minerals. The answer is yes. But the way UPRC became a mineral owner is best explained starting in the early 1800s. The map below reflects the territorial acquisitions of lands that now make up the United States. Key Takeaways: Adam Smith's quote highlights the importance of land and mineral rights. UPRC's mineral ownership traces back to the early 1800s. The 1862 Pacific Railroad Act granted land for track construction, leading to significant UPRC land ownership. A checkerboard land ownership pattern emerged, with railroads owning odd-numbered sections. Courts confirmed these lands included oil and gas mineral rights. In 1987, UPRC's mineral rights were transferred to Union Pacific Resources. The 1998 merger with Pennzoil marked the end of UPRC's direct energy sector involvement. Railroads had been successfully constructed and utilized in the eastern states. However, the acquisition of California and other western states following the 1848 Mexico Cession opened the door for dreams to connect the East Coast to the West Coast. In 1862, President Abraham Lincoln presided over the passage of the Pacific Railroad Act. This Pacific Railroad Act chartered the Central Pacific and the Union Pacific Railroad Companies with the task of building a railroad that would connect the east and west coasts. Over the next six years, the two companies would race toward each other. Pacific Railroad started near Sacramento, California and Union Pacific started at the end of an eastern state’s existing track in Council Bluffs, Iowa. The two railroads covered a combined 1,912 miles and met on May 10, 1869, in Promontory, Utah. The reason it was a race is that each company would receive 12,800 acres of land and $48,000 in government bonds for each mile of track they built. So, the more tracks they built, the more land and bonds they would receive. This is referred to as Railroad Land Grants . This map reflects the railroads constructed across the United States. Each of these companies was also awarded land and bonds for every mile of track. Township and Range System of Land Survey Before the efforts to expand the railroad systems, the United States initiated an effort to map and survey lands west of the original thirteen colonies. As formalized by the Land Act of 1796, much of the land west of the Appalachians was divided into square townships of land, six miles on a side. The townships were each subdivided into sections, each section being one-mile square. That means that each township encompasses 36 square miles. Now imagine these townships lined up edge-to-edge from the Ohio River Valley to the Pacific Ocean and from the Mexican border to the Canadian Border. For ease of reference, sections were numbered 1 – 36 as shown below: As we mentioned, the incentive to build the railroad tracks was an opportunity to receive Railroad Land Grants. For every 20 miles of track that was built, the government would then award the railroad company with a patent to each odd-numbered section extending 20 miles on both sides of the track. The government would retain the even-numbered sections. As shown below, this would result in a checkerboard ownership of both railroad lands and government lands. Approximately 130 million acres were awarded to railroad companies under the Pacific Railroad Act. The majority of this land went to four companies: Northern Pacific (40 million), Santa Fe (15 million), Southern Pacific (18 million) and Union Pacific (19 million). By 1996, these four railroad companies were merged into two: the Burlington Northern Santa Fe and the Union Pacific (which acquired the Southern Pacific). Oil and Gas Mineral Rights Although there was a lot of controversy, the courts eventually ruled that the patents to the Railroad Land Grants included oil and gas mineral rights. Mineral owners have the right to lease their mineral rights for oil and gas production. In 1987, the surface and minerals owned by Union Pacific Railroad were transferred to Union Pacific Resources.  The New York Times reported in June 1997 that Union Pacific Resources was the largest domestic producer of oil and gas over the past 5 years. In 1998, Union Pacific Resources merged with another energy company called Pennzoil Company, and the resulting entity was named "Pennzoil-Quaker State Company." This merger marked the end of Union Pacific's direct involvement in the energy sector. Learn more about the value of mineral rights . Interested in learning about the value of your mineral rights? Get your free Property Report from LandGate today! From there, you can list your mineral rights for lease or sale for free on our online marketplace.

Georgia is a southeastern U.S. state known for its diverse landscape, from mountains to beaches. With the growing popularity of Georgia as a tourist destination and a thriving real estate market, leasing property and land in this state has become an attractive option for many individuals and businesses. Whether you are looking to lease commercial or residential property or agricultural land, there are certain steps you need to follow to ensure a successful transaction. In this guide, we will walk you through the process of leasing property and land in Georgia. Leasing Land for Solar Farms in Georgia One of the most popular land leasing options in Georgia is for solar farms. With its sunny climate and ample open space, the state has become a hub for solar energy. Leasing land for solar farms can be lucrative for landowners, especially with the rising demand for renewable energy. The popularity of solar farm development in Georgia is due to several factors. The state enjoys high solar radiation levels, making it ideal for solar energy. Supportive government policies, such as tax credits and rebates, have created a favorable environment for landowners and investors in renewable energy. Growing awareness of climate change and the push for sustainable energy have increased interest in solar farms, as consumers and businesses seek greener alternatives. The economic benefits, including job creation and energy independence, enhance the appeal of solar farm development, positioning Georgia as a leader in the solar energy movement. To lease your land for a solar farm in Georgia, you will need to follow these steps: Determine the viability of your land:  Not all land is suitable for solar farming. You will need to assess whether your land has sufficient access to sunlight, minimal shading from trees or buildings, and suitable soil conditions. It may also be helpful to consult with experts in solar energy development to determine the potential of your land. Understand the regulations and incentives:  Georgia has specific laws and regulations surrounding solar energy production, including tax incentives for solar farm developers. It is important to familiarize yourself with these regulations and understand how they may impact your leasing agreement. Determine the lease terms:  Lease terms for solar farms can vary depending on factors such as location, land size, and potential energy production. It is important to negotiate fair and favorable terms, including rent amount, length of lease, and any additional clauses regarding maintenance or upgrades to the land. Solar farms can range from several acres to hundreds of acres and can produce enough energy to power thousands of homes. Solar developers typically look for larger land parcels, as larger projects are more cost-effective and efficient. However, the size of the land will also depend on its proximity to existing transmission lines and substations. Having existing transmission lines nearby can make the development process quicker and more cost-effective. The land is typically leased for long-term use, usually 20-40 years, and landowners are generally paid on a per acre per year basis. How to Lease Land for Solar Farms in Georgia Landowners in Georgia looking to make money from their land and contribute to clean energy production can   lease their land for a solar farm . To start connecting with solar developers, you can list your property for lease on LandGate's marketplace at no cost and with no obligations to accept any offers: Leasing Land for Wind Farms in Georgia In Georgia, leasing land for wind farms is gaining traction alongside solar farms. With the growing demand for clean, renewable energy, wind power is a viable alternative. Georgia, located along the Atlantic coast and Appalachian Mountains, offers an ideal environment for wind farm development. Currently, Georgia has only a few operational wind farms compared to states with established wind energy sectors, with around two major farms contributing to the energy grid. Development has been slower due to geographical constraints and competing energy sources. However, the growth potential is substantial as technology advances and the demand for renewable energy rises. Continued investment and supportive policies could boost wind farm developments, making Georgia a bigger player in the market. To lease land for a   wind farm  in Georgia, start by assessing your land's potential with a wind resource evaluation, which is crucial for feasibility. Considerations like topography and proximity to transmission lines influence suitability. Then, familiarize yourself with regulations and incentives, as wind energy production is subject to state and local laws. Understanding these is key, just as in solar energy development. Engage in lease negotiations. Securing favorable terms that benefit both landowner and developer is essential. Leasing land for renewable energy offers landowners a chance to generate income while supporting sustainable solutions. With Georgia's prime location, leasing property for solar or wind farm development is attractive. Following these steps can help you navigate the leasing process successfully. How to Lease Land for Wind Farms in Georgia Landowners in Georgia who want to generate income from their land while supporting renewable energy can   lease their land for wind farms . To begin connecting with wind energy developers, you can list your land on LandGate's marketplace. This service is free and does not obligate you to accept any offers: Leasing Land for Carbon Credits in Georgia Carbon credits are a market-driven mechanism designed to encourage the reduction of greenhouse gas emissions. In Georgia, landowners can engage in carbon offset initiatives by managing their properties to capture carbon, such as through reforestation,   regenerative agriculture , or wetland restoration. These practices allow landowners to generate carbon credits, which can be sold to organizations seeking to offset their emissions. This approach benefits the environment while also providing landowners with an additional revenue stream. To lease land for carbon credit projects in Georgia, follow these key steps. First, evaluate your land's potential, as not all types are suitable for carbon credits. Consulting experts can help determine your land's viability. Next, familiarize yourself with Georgia's specific regulations and requirements; adhering to these is essential to ensure your credits are eligible for sale. Finally, collaborate with a reputable organization to engage successfully in carbon credit trading. A knowledgeable partner can guide you through the process and help maximize your earnings. Leasing land for carbon credits offers a distinctive opportunity for Georgia landowners to contribute to environmental efforts while generating income. By following these steps, you can lease your land for this purpose and join the growing movement toward sustainability. How to Sell Carbon Credits in Georgia For those interested in   selling carbon credits  from their land in Georgia, listing the property on a platform like LandGate can connect them with developers and companies who are seeking to invest in carbon offset projects. While this opportunity provides landowners with a way to make money from their land, the long-term nature of carbon sequestration projects compels landowners to contemplate the lasting influence of their commitment to land stewardship in these agreements. Leasing Land for Agriculture in Georgia In addition to renewable energy and carbon credit initiatives, renting out land for agriculture is a profitable venture for landowners in Georgia. The state's rich soil and favorable climate make it ideal for   diverse agricultural production . Georgia is celebrated for its varied farming practices, significantly boosting the local economy. The state leads the nation in producing peanuts, cotton, and blueberries, and also excels in cultivating peaches, pecans, and an assortment of vegetables like sweet corn and squash. Livestock farming, especially poultry, plays a crucial role in the state's agricultural output. There is a growing trend toward sustainable and organic farming, with many farmers adopting eco-friendly methods to meet the increasing demand for local, organic products. This blend of traditional crops and innovative practices positions Georgia as a dynamic force in the agricultural sector. To lease your land for agriculture in Georgia, start by assessing its potential. Much like developing solar and wind farms, not all land is suitable for farming. Research which crops or livestock are best suited to your region, and consult experts if needed. Establishing clear lease terms is crucial, as agricultural lease agreements can vary greatly based on factors such as location, water access, and market trends. Negotiating terms that are advantageous for both parties is essential. Lastly, secure a reliable tenant. Choose someone with experience who can effectively manage the land and maintain its productivity. Leasing land for agriculture in Georgia can provide a steady and lucrative income for landowners. By following these steps, you can successfully lease your land and contribute to the state's flourishing agricultural industry. Overall, leasing land offers diverse opportunities for Georgia landowners to generate additional income and support sustainable solutions such as renewable energy production, carbon offsetting, and agricultural development. How to Lease Land for Agriculture in Georgia For landowners in Georgia who are looking to  lease agricultural land , listing their property on platforms such as LandGate can connect them with farmers and agricultural companies. This approach ensures that their land is put to productive use, generating income while supporting the state's agricultural heritage. Leasing Ranches in Georgia In addition to traditional agricultural land, ranches are also a popular option for leasing in Georgia. Ranching is a significant industry in the state, with cattle and poultry production being the top two agricultural commodities. Georgia is home to a   diverse range of ranch types , each contributing uniquely to the state's agricultural landscape. Some of the most common ranch types include: Cattle Ranches : These are among the most prevalent in Georgia, focusing primarily on the breeding and raising of beef cattle. The state's vast pastures and mild climate provide ideal conditions for cattle ranching, making it a foundational industry in the region. Poultry Ranches : With poultry farming being a leading commodity in Georgia, these ranches are dedicated to raising chickens, turkeys, and other fowl for meat and egg production. Georgia is the largest producer of broilers in the U.S., and poultry ranches play a vital role in the state's economy. Equestrian Ranches : Catering to the horse industry, equestrian ranches focus on breeding and training horses for recreational, competitive, or work purposes. With ample space for riding and training, these ranches are a popular choice for horse enthusiasts. Specialty Ranches : These ranches may focus on niche markets, such as organic farming, grass-fed beef, or exotic animals. They often employ unique practices that align with specific consumer demands, contributing to the diversification of Georgia's agricultural output. Combination Ranches : Many ranchers engage in mixed farming, combining livestock production with crops. This approach not only maximizes land use but also creates a sustainable cycle of farming where animal waste enriches the soil for crops, and crop residues provide feed for livestock. Each type of ranch in Georgia offers unique leasing opportunities, allowing landowners to generate income while supporting the state's agricultural tradition. To lease your ranch, start by assessing its potential for livestock or poultry production, considering factors like soil quality and water access. Next, establish the lease terms. Ranch leases may differ from traditional farmland due to livestock or poultry production needs, so negotiate terms beneficial to both parties. Finally, find a suitable tenant with experience in animal husbandry to ensure animal welfare and venture success. Leasing ranches can provide Georgia landowners with a steady income and support the thriving livestock and poultry industry. By following these steps, you can successfully lease your ranch and join this lucrative sector. How to Lease Ranches in Georgia Landowners in Georgia interested in leasing their properties for ranching can use platforms like LandGate to list their land and connect with prospective ranchers. This connection facilitates partnerships that maximize land use and profitability while supporting the state's agricultural economy. Leasing Recreational Land in Georgia Aside from agriculture and renewable energy, landowners in Georgia can also   lease their property for recreational purposes . This includes activities such as hunting, fishing, camping, and hiking. Leasing your land for recreational use in Georgia involves a few key steps. First, evaluate the potential of your land, as not all properties are suitable for recreational activities. Consider location, terrain, and natural resources when assessing your property's suitability. Next, establish the lease terms, which can be more flexible than other types of leases. It's important to negotiate terms that fit the specific activities allowed on your land. Finally, secure appropriate insurance coverage to protect against accidents or damage, a crucial aspect of any leasing agreement. Leasing recreational land can be an attractive option for both landowners and outdoor enthusiasts. By following these steps, you can lease your land for recreational use and potentially earn additional income while also providing opportunities for others to enjoy the great outdoors in Georgia. How to Lease Recreational Land in Georgia There are many   benefits of leasing land for recreation , including generating income and promoting conservation efforts. For landowners in Georgia looking to lease their land for recreational purposes, listing the property on LandGate's marketplace can connect them with outdoor enthusiasts, clubs, and organizations. Leasing Hunting Land in Georgia Hunting is a popular recreational activity in Georgia, and landowners can take advantage of this by   leasing their property for hunting purposes . This type of lease can be mutually beneficial, as it allows hunters access to private land while also generating income for the landowner. Georgia offers a variety of hunting seasons throughout the year, catering to different types of game and ensuring a diverse experience for hunting enthusiasts. These seasons generally include: Deer Season : Typically one of the most popular hunting seasons, deer hunting in Georgia is divided into archery, primitive weapons, and firearms segments. The archery season usually runs from mid-September to mid-October, followed by a primitive weapons season, and the firearms season extends from late October through early January. Waterfowl Season : This season is inspired by the migratory patterns of ducks and geese, with the hunting season generally commencing in late November and extending through January. Hunters can enjoy various waterfowl species, and regulations may vary by region. Wild Turkey Season : Turkey hunting in Georgia primarily takes place during the spring, usually from mid-March to early May. This season is famous for its challenging nature, with hunters utilizing calls and decoys to attract these wily birds. Small Game Season : Small game hunting is open for various species, such as squirrels, rabbits, and quail. This season typically runs from late fall to winter, providing opportunities for hunters to engage with a wide array of game species. Dove Season : The dove season in Georgia is generally split into two segments: the first season begins in early September, with a second segment occurring in late November. This short but lively season attracts many hunters eager to enjoy the thrill of doves in flight. Understanding the various hunting seasons is essential for landowners leasing land for hunting activities, as it helps them plan accordingly and maximize the enjoyment and safety of both hunters and the surrounding community. To lease your land for hunting in Georgia, you'll need to first understand the regulations. The state has specific rules for hunting on private lands, and it's crucial to familiarize yourself with them before entering into a lease agreement. Next, determine the lease terms, as hunting leases typically involve a set price per acre or a percentage of harvested game. It's important to negotiate fair terms that align with market rates. Lastly, consider liability and insurance since hunting can be potentially risky. Ensure you have proper insurance coverage for your property and include liability clauses in the lease agreement. Leasing hunting land in Georgia can provide landowners with a steady source of income while also supporting the state's thriving hunting industry. By following these steps, you can successfully lease your land for hunting purposes and contribute to this popular recreational activity in Georgia. How to Lease Hunting Land in Georgia By listing their hunting land for lease on LandGate’s open marketplace, landowners in Georgia can reach a broad audience of hunters seeking exclusive access to prime hunting grounds. This connection not only generates revenue but also contributes to the sustainable management of wildlife habitats, maintaining the ecological balance and preserving the state's natural heritage. How to Lease Land in Georgia List your land for lease for free on LandGate's marketplace to connect with a wide range of potential lessees. LandGate does not charge any listing fees or commissions! Interested in learning about how much your land in Georgia is worth for sale and lease opportunities? Get a free Property Report on LandGate's map to learn more about your land and its estimated value.

Key Takeaways: Missouri is experiencing a significant increase in solar farm development due to state incentives promoting renewable energy. Landowners can earn a steady income through solar lease payments, providing long-term financial stability. Leasing Process : The process involves negotiation, option agreements, and eventual lease agreements, with payments increasing as the project progresses. Infrastructure Challenges : A bottleneck in electrical infrastructure capacity affects the transition from solar options to leases. Incentives and Market Conditions : The Inflation Reduction Act and Solar Renewable Energy Certificates (SRECs) provide financial incentives, while favorable electricity market conditions encourage solar investments. Types of Solar Farms : Missouri hosts commercial, community, and behind-the-meter solar farms, each serving different energy needs and scales. LandGate's Role : LandGate offers data intelligence and connects landowners with developers, helping them understand the value of their land for solar leasing. What Should Landowners Know About Solar Farm Development in Missouri? As of September 2024, Missouri is one of the most active states for solar farm activity and development. The number of solar farms in Missouri has been increasing exponentially over the past decade. This is a direct result of the implementation of various incentives promoting renewable energy generation across the state. Many solar developers are actively planning new projects across the state. This presents a great opportunity for landowners to earn a steady stream of income from their land through solar lease payments , also known as solar payments. Landowners in Missouri are receiving offers from developers to lease their land for solar farms. They often wonder how much their land is worth for a solar farm and if they are receiving a good offer. Leasing land for solar farms helps landowners provide their future generations with long-term financial stability. There are several factors that go into solar farm valuations that landowners and realtors should consider. LandGate is a marketplace that provides data intelligence to landowners while also providing them the opportunity to connect with Missouri solar developers. In a traditional way, developers would knock on landowners' doors or cold-call them. This old-fashioned way is not easy for landowners. It can be perceived as unwanted solicitation at a time when the landowner is not ready and doesn’t have enough information to feel comfortable talking about a solar farm on their land. LandGate provides useful data to landowners or to their agents to inform them for free about the value of their land for solar farm leasing. Equipped with more information, landowners can make good and fast decisions about pursuing a solar lease. What is the Process for Leasing Land for a Solar Farm in Missouri? Step 1: Solar Lease Negotiation Period in Missouri The solar lease negotiation process is the first step landowners take when interested in having a solar farm on their property. Land professionals can assist landowners during this period to make sure they are receiving the best deal possible but also understand the time period between signing the lease and having an active solar farm on their land. During the negotiations, landowners can negotiate solar lease payments, the length of the lease for the solar farm, and the percentage of the escalator to combat inflation. Step 2: Solar Lease Option Agreement in Missouri The next step is for the landowner to get a solar farm option agreement. At that point, the solar developer has done a preliminary study, also called a feasibility study, to know if the site is potentially suitable for solar farm development. Why Can’t I Get a Solar Lease Agreement Directly? The process of a solar farm project in Missouri begins with optioning the land, which is called “site control” by developers. The reason solar developers cannot go straight to a solar lease is that they have to evaluate the land thoroughly. Typically the initial screening study is good enough that this first due diligence process is all that is needed. Another larger uncertainty for solar developers is to know if the solar project will be accepted by the utility on the electrical infrastructure (or electrical network). We refer to this phase as “utility’s application” in the graph above and developers refer to this phase as “queue submission”. This means that the solar project enters the interconnection queue of that region waiting for regulatory approval. These queues are known as Independent Systems Operator (ISO) or Regional Transmission Organization (RTO). During this period, the analysis of possible engineering and land factors is conducted to determine the feasibility of the project to be constructed and connected to the grid. This is the reason why the solar developer starts with an option, as not all solar projects are approved by the ISO/RTO. How Likely Will My Missouri Solar Option Become a Solar Lease? At the moment, about 20% of solar options become a solar lease and are built into a solar farm. Currently, the electrical infrastructure network is a big bottleneck. There are more applications of solar projects to get on transmission lines than available capacity. However, governments are aware of this situation and are working to ease it, in order to foster more solar development. This means that it will likely get resolved in the next few years. The problem of available capacity applies only to utility-scale solar farm projects, which are typically greater than 5 MW capacity. Where Can a Landowner Get More Information About the Solar Lease / Option Period in Missouri? LandGate assists landowners with determining the value of their land for a solar farm. We do this by taking into account the proximity of substations, transmission lines, and state incentives - each of which plays a role in site control. Am I Getting Paid During the Solar Option Period? Yes. Solar payments start during the option period but are usually smaller compared to the solar payments during the lease or construction phase of the solar farm. Step 3: Solar Lease Agreement in Missouri Once the availability of grid capacity is confirmed, the solar project is moved to a “planned” phase. During this time, the developers will exercise the solar farm option agreement to become a solar farm lease agreement. Typically larger solar rent payments start at this time. Step 4: Solar Farm Construction in Missouri Solar payments are phased as the project progresses. It starts with small solar lease payments during the option phase. Then it increases during the solar lease phase, it increases again during the construction phase of the solar farm, and the largest solar payment occurs when the solar farm is active and generating electricity. How Long Does It Take to Build a Solar Farm in Missouri? Usually, it will take between 1 to 2 years to build a utility-scale solar farm. It takes less time to build a community solar farm since they are usually smaller in size. Step 5: Active Solar Farm in Missouri After the construction has been completed, the solar farm is now considered ‘active.’ For landowners, this phase is called ‘production,’ as it signifies that their land is currently producing energy for the electrical grid that it is interconnected with. The production phase lasts anywhere from 25 to 50 years depending on what was negotiated on the lease. What Can a Solar Farm Power In Missouri? In Missouri, the average solar farm size is 24 acres generating approximately 3.5 megawatts (MW) of electricity when operating under optimal conditions. This output has the potential to cater to the energy needs of around 2000 households as the typical electricity consumption of an average household in Missouri stands at 16,680 kilowatt-hours per year. What is the Impact of the IRA and Other Factors in Missouri? Missouri solar incentives have encouraged solar companies to develop more projects across the state. Additionally, favorable market conditions for electricity prices are encouraging investment into the solar sector in Missouri. Landowners and real estate agents should have an understanding of these incentives and market conditions to be prepared for potential offers for solar project deals. Inflation Reduction Act: This bill passed in 2022 and became effective at the beginning of 2023 provides incentives to reduce renewable energy costs for organizations on a business, educational institution, and state level. More specifically, in Missouri, solar energy is eligible for a tax credit. Solar Renewable Energy Certificates (SRECs): Missouri's SRECs are a financial boon for those generating clean electricity through solar power. By participating in this program, solar system owners not only contribute to a greener future but also enjoy economic benefits, making the transition to solar energy even more appealing. RPS Goals: The RPS goal was revised in 2014 to increase the 2017 goal to 15% from 10%, the 2022 goal from 15% to 25%, and to set a goal of 30% by December 31, 2028. Missouri has allowed net metering across residential and business rooftops since 2007, as per the “Easy Connection Act” or PUB-2238, allowing ratepayers to net meter from systems up to 100 kW of capacity from solar, wind, or other renewable sources. Ameren, whose electric service territory encompasses about one-third of the state towards the east, credits ratepayers $0.0287 per kWh generated for excess energy residents generate over the summer months. The utility credits $0.0284 per kWh generated for excess solar energy produced over the winter and spring months. For net metering, residents are charged a one-time fee of $226 per bidirectional single-phase meter per location, or $169 per three-phased meter. On June 1, 2018, Missouri Senate Bill 564 (SB 564) was signed into law, which provided Ameren Missouri solar programs to offer solar rebates and also enable utility-owned solar. The increase in LMP pricing has made solar energy an attractive option for electricity generation in Missouri. LMP is a pricing method used in electricity markets to determine the cost of electricity at specific locations (called ‘nodes’) within the electrical grid. A PPA (Power Purchase Agreement) is a contract between a renewable energy developer (such as a solar company) and a power purchaser (such as a utility). Over the last three years, Missouri has experienced no increase in PPA pricing and an average LMP price increase of 19.6% (this is expected to increase by 8% in 2024). In the context of solar energy projects in Missouri, the relationship between LMP and PPA pricing lies in how the PPA sets the pricing terms for the electricity being sold. The fixed price in the PPA provides certainty to the solar developer about the revenue they will receive for the electricity that they produce. Meanwhile, the LMP serves as the market price for electricity at a specific node. When the LMP at a particular node in the grid is higher than the contract price specified in the PPA, it benefits the solar company, as they will receive the contract price and sell the electricity at a higher market price (increasing their revenues). This combination has aided in the rise of solar projects in Missouri. Commercial, Community, & Behind-the-Meter Missouri Solar Farms Typically, landowners and land professionals think of solar farms as huge plots of land covered in solar panels out in the middle of nowhere. However, this usually is not the case! In Missouri, solar farms are typically 24.1 acres, allowing about 3.5 MW of electricity to be produced under ideal conditions. Commercial solar projects are the largest energy projects about 40+ acres of land. These solar farms usually feed their energy into the grid to the surrounding area. Realistically these solar farms can be any size as it depends on the capacity available within the grid. Community solar farms in Missouri serve energy customers directly within the same area or community. These solar farms tend to be smaller in size in relation to acreage and megawatts. Community solar is different from residential solar as residential solar panels are found on top of rooftops. Community solar projects can be larger, it just depends on the location. Commercial, residential, and industrial solar farms are all considered to be behind-the-meter solar farms. Behind-the-meter means that they are intended to generate power primarily for on-site consumption rather than selling it to the grid. Community solar and utility-scale solar farms generate energy that is utilized in the grid to send it to all consumers a part of that grid. This means that they are front-of-the-meter solar farms. Discover Land’s Value For Solar Leasing in Missouri The solar energy industries within Missouri are growing to achieve energy goals for clean energy development. This makes it easier for landowners and real estate agents to participate in solar development deals. Landowners in Missouri can receive a free solar leasing estimate by identifying and claiming ownership of their parcel on our map. Realtors can assist their clients in learning about their property’s potential for solar energy by using LandGate. Land professionals can utilize LandGate’s data and analytics to provide their clients with information about their resource’s potential.

As the demand for renewable energy continues to grow, understanding the various options for solar energy generation becomes increasingly crucial. There are two main types of solar farms - commercial solar farms and community solar farms. This resource explores fundamental differences between commercial and community solar farms, exploring how each model operates and the benefits they offer. Learn how to assess which option best suits your land, considering factors like land size, location, and community needs. Key Takeaways: Community Solar Farms : Owned by local individuals or organizations. Provide solar access without personal installations. Smaller scale, typically 10-30 acres, serving local needs. Commercial Solar Farms : Owned by private companies for large-scale generation. Sell electricity to utilities or corporations. Larger scale, requiring 40+ acres, often in remote areas. Key Differences : Community farms are localized; commercial farms serve broader markets. Community farms are near consumers; commercial farms can be remote. Land Suitability : Consider acreage, infrastructure proximity, and sunlight. Tools like LandGate help assess land for solar use. Community Solar Farms Defined A community solar farm is a solar power installation that is owned and operated by multiple individuals, businesses, or organizations in a specific geographical area. Participants in a community solar farm typically purchase or lease a share of the solar panels. The power that the solar panels produce allows them to receive a credit on their electricity bills. Community solar farms generally offer lower prices for electricity than the local utility company. The primary goal of community solar farms is to provide access to solar power for people who may not be able to install their own solar panels. Whether it is due to factors such as cost, lack of suitable roof space, or being unable to own their own property. According to the Office of Energy Efficiency & Renewable Energy , community solar programs differ depending on the regulations and laws of the state. In states with permits, subscribers will have two bills; one from the solar program from the community solar farm, and the other from the utility for the traditionally-generated power. Many states are aiming to make the process simpler by combining the two bills. Currently, community solar projects are active in 43 states and the District of Columbia (DC). Among these, 22 states and DC have enacted "enabling legislation," which promotes or requires community solar initiatives. States with such legislation often see more projects developed and greater subscription availability. Furthermore, 19 states, along with DC, have specific legislation to support low-income community solar projects. Commercial Solar Farms Defined A commercial solar farm is typically owned and operated by a private company or organization. They are designed to generate electricity on a large scale for commercial or industrial use. These solar farms are usually located in areas with abundant sunshine and plenty of open land, such as deserts or farmland. Renewable energy developers seek out large expanses of land for commercial solar projects. The electricity generated by commercial solar farms is typically sold to the local utility or large corporations, rather than directly to consumers. The amount of acreage needed for a solar project to be considered a commercial solar farm can vary. This depends on several factors, such as the capacity of the solar farm and the location of the site. In general, commercial solar farms are designed to generate a significant amount of electricity and typically require a larger land area compared to residential or community solar installations. A typical commercial solar farm may require anywhere from 30 to hundreds of acres of land, depending on the size of the installation and the energy demands the solar farm is meant to serve. For example, a 1 MW solar farm (capable of producing 1 megawatt of power) may require approximately 5 to 10 acres of land, while a larger 100 MW solar farm could require up to 500 to 1,000 acres of land. It's important to note that the size of a commercial solar farm can vary depending on the efficiency of the solar panels used, the amount of sunlight the site receives, and other factors such as shading and topography . Therefore, the acreage required for a commercial solar farm can vary widely based on the specific project details. The Difference Between Community and Commercial Solar Farms So, what is the difference between community and commercial solar farms? The scale and purpose are the biggest differences, alongside other factors like location and energy distribution. Community solar farms are designed to be smaller installations that support local energy needs, often providing renewable energy to nearby homes and businesses. They operate on a more localized level, involving community members who may invest in or benefit directly from the energy produced. This model encourages local engagement and offers a more personalized approach to renewable energy. On the other hand, commercial solar farms are much larger and aim to produce significant amounts of electricity for larger markets. They are often operated by utility companies or large corporations and contribute electricity to the grid on a larger scale, potentially serving multiple regions or states. This larger scale of operation allows them to take advantage of economies of scale, making the energy production process more cost-effective. In terms of acreage, community solar farms are generally located on smaller properties, ranging from 10 to 30 acres of land or more. These sites are often chosen for their proximity to the community they serve, making it easier to distribute the energy efficiently. Meanwhile, commercial solar farms typically require a minimum of at least 40 acres of buildable land or more, reflecting their larger scale. The expansive space allows for more solar panels and infrastructure necessary to meet their high energy output goals. Location is another important consideration. Community solar projects must be situated near energy consumers, such as residential areas and small businesses, to ensure efficient energy distribution and minimize loss during transmission. This proximity promotes community involvement and can even increase property values. In contrast, commercial solar projects can be located in more remote locations, far from immediate consumers, as their energy is fed into the broader electrical grid, reaching a wide audience. These remote sites are often chosen for their optimal sun exposure and reduced land costs, maximizing the efficiency and profitability of the solar farm. How to Determine if Your Land is Right for Community or Commercial Solar Development Landowners can benefit from leasing land for solar farms . It is a great source of passive income throughout the lifetime of a solar lease and allows you to contribute to clean energy production. But how can you tell if your land is best for a commercial or a community solar farm? A multitude of factors affect whether or not land qualifies for a solar lease , including amount of buildable acreage available, local renewable energy development incentives, and your property's proximity to electrical infrastructure. With the use of LandGate’s free land report , you can assess your property's suitability for a solar farm using various data points specific to your property, including: Exclusion zones Buildable acreage Proximity to transmission lines Proximity to distribution lines Proximity to substations Amount of sunlight Proximity to other solar farms in your area

Land leasing is an age-old concept that continues to shape the dynamics of real estate. For real estate investors, understanding the tax implications of various leasing arrangements can open up opportunities to maximize your assets' income potential while minimizing your tax burden.  Key Takeaways: Land Leasing Basics : A land lease allows tenants to use land for a specified period, often for agriculture, commercial, or energy purposes. Types of Leases : Includes retail, industrial, agricultural, and renewable energy leases, each with unique terms and implications. Tax Benefits for Landowners : Rental income is passive, simplifying tax reporting. Potential tax reductions exist for agricultural use, conservation, and easements. Lease Structuring Considerations : Lease terms affect tax implications; longer terms may allow for more depreciation. Professional advice is crucial. Maximizing Benefits : Understanding tax implications enhances investment profitability. Engaging professionals ensures compliance and maximizes advantages. Understanding Land Leasing Before we dive into the finer details of tax benefits, it's essential to grasp the basics of land leasing. A land lease, or ground lease, is a lease agreement that allows a tenant to use a piece of land owned by a landlord or lessor for a specified period. The land is generally leased for a longer term, often decades, and can be used for purposes as diverse as agriculture, commercial and residential development, or energy production. Types of Land Leases There are several types of land leases, each with its own terms and legal implications: Sublease : The original lessee rents out the land to a third party. Retail Ground Lease : Common for retail development, the tenant constructs and owns the building, paying rent for the land. Industrial Ground Lease : Typically for larger industrial structures, the tenant may also own the building and is responsible for improvements. Agricultural Lease : The tenant uses the land for farming, livestock grazing, and other agricultural activities . Renewable Energy Lease : Mainly for solar , wind , and carbon credits , where land is used for energy generation or carbon sequestration. Tax Benefits for Landowners Landowners who are lessors in a land leasing arrangement also stand to benefit from several tax considerations.   Rental income from land leases is usually considered passive income, resulting in simpler tax reporting requirements and potentially allowing for the deduction of passive losses against passive income. The tax treatment of land varies by state and locality but may include exemptions or reductions for agricultural use, conservation, or other land use designations that can significantly lower property tax bills.   Donating or selling a conservation easement can result in considerable tax benefits for landowners. Easements restrict the development of a property but can lead to tax deductions and lower estate taxes. Considerations for Property Owners When structuring land lease agreements, there are several things to keep in mind to ensure you're maximizing your tax benefits. The terms of the lease can have significant tax implications. A longer lease term may allow for more significant depreciation deductions, while a well-structured renewable energy lease, for example, can offer even more lucrative arrangements. Engage legal and tax professionals to create an agreement that aligns with your objectives. Different lease structures may result in varying tax consequences. For example, a pre-paid lease could trigger an immediate tax liability for the landlord. Understanding the implications of each lease type before entering an agreement is crucial.   The tax code is complex and ever-changing. A tax professional can guide you through the intricacies, ensuring that your land leasing ventures are maximizing the available tax advantages while staying compliant with tax laws. Maximizing the Benefits of Land Leases As you navigate the world of land leasing in real estate, being cognizant of the tax implications is an integral part of smart investing. Whether you're an investor looking to expand your portfolio with land leases or a landowner considering leasing out your property, understanding and utilizing the tax benefits can make a substantial difference in your financial outcomes. By leveraging the tax deductions, deferrals, and favorable rates associated with land leasing, you can enhance the profitability of your real estate investments and ensure you're getting the most out of your ventures. Engaging with experienced professionals and staying informed about tax strategies will put you in a strong position to reap the rewards that land leasing can offer.

Brownfield sites are defined as previously developed properties that may have been contaminated by hazardous substances or pollutants (such as industrial waste or chemicals). Although there are risks associated with the redevelopment of brownfield sites, there are also opportunities to turn these properties into successful investments that generate revenue. This resource outlines the risks and opportunities associated with brownfield site redevelopment. Many government agencies across the country own brownfield properties. Repurposing these underutilized sites often presents a challenge for agencies, but oftentimes, these sites can be used for renewable energy or data center development, generating revenue while breathing new life into these unused lands. If you're curious about the potential of your agency's brownfield site for clean energy or data center development, book a free consultation call with the government team  at LandApp: What are Brownfield Sites? According to the United States Environmental Protection Agency (EPA) , a brownfield is a property where redevelopment, expansion, or reuse may be hindered by the presence—or potential presence—of hazardous substances, pollutants, or contaminants. In simpler terms, brownfields are previously developed commercial or industrial sites that have been abandoned or left underutilized due to concerns about contamination. These sites can include anything from old factories and vacant warehouses to deserted gas stations. Risks and Opportunities of Brownfield Sites Brownfield sites, typically defined as former industrial or commercial properties with potential contamination issues, pose unique environmental and financial challenges. However, with these challenges come opportunities for significant returns and community revitalization if approached strategically. Opportunities for Redeveloping Brownfield Sites There are many opportunities and potential advantages for the redevelopment of brownfield sites. Redeveloping brownfield sites can bring new life to underutilized or abandoned areas. It can also promote sustainable development by repurposing existing infrastructure and reducing urban sprawl. Many communities are actively seeking to revitalize brownfield sites in order to attract businesses and create jobs, making it easier for developers to gain planning permission. One of the main opportunities for redeveloping brownfield sites is to lease them for solar energy production. Brownfield sites can be prime candidates for solar energy projects as they are typically unsuitable for residential or commercial redevelopment without significant remediation. The conversion of   brownfields  into solar farms can mitigate the site’s environmental challenges while contributing to green energy production, making the transformation a strategic move for both economic and environmental sustainability. Agencies across the country are increasingly turning to solar energy as an attractive option for redeveloping brownfield sites. For example, Weber County, UT is actively trying to lease its 142-acre capped landfill for a solar farm by advertising the property for lease on LandApp's platform . The property benefits from its close proximity to 5 substations, 2 69 kV transmission lines running through the property, and 3 fiber lines surrounding the location. Weber County has already received multiple lease offers from developers from this listing. Another opportunity for brownfield sites is to redevelop them into data centers . The ongoing data center boom in the U.S. has led to a shortage of suitable sites, which has made brownfield sites an attractive option for hosting data centers. By leasing or selling agency-owned property for data centers, government agencies can contribute to local economic and infrastructure growth while generating revenue. Risks of Brownfield Site Redevelopment Redeveloping brownfield sites carries a significant risk of property contamination, which can result in long-term environmental harm. This includes polluted drinking water sources, degraded soil quality, and disrupted ecosystems. Such issues can lead to substantial environmental liabilities and expensive cleanup efforts, underscoring the importance of careful planning and mitigation when tackling these projects. Additionally, building on brownfield sites can post significant risks, including direct exposure to hazardous materials that can lead to health issues like respiratory problems and skin irritation. Indirect exposure is also a concern, as contaminated water, food, or soil can introduce harmful substances into the body, further endangering health. The cost of decontaminating sites can be high, but developers have significant tax relief options on both the federal and local levels when they decontaminate brownfield sites. For example, the  EPA's Brownfields Program  provides grants to promote the cleanup and reuse of brownfields. Similarly, most states have provisions that allow brownfield buyers to negotiate important indemnities and cleanup agreements that can help navigate the landscape, shorten the time for remediation, and protect purchasers from liability associated with existing damages caused by contaminated sites. Risk mitigation plays a critical role in ensuring the successful transformation of brownfield sites . Effective risk mitigation involves compliance with applicable regulations and the involvement of stakeholders, including government agencies, local communities, and environmental experts. These partnerships are crucial in overseeing the redevelopment process. It also involves conducting thorough environmental assessments, obtaining appropriate insurance coverage, and negotiating with the seller for any necessary cleanup or remediation efforts. Similarly, effective financial risk mitigation plays a crucial role in brownfield redevelopment. The expenses associated with remediating and revitalizing contaminated sites can be substantial. Developers can minimize financial risks by conducting thorough cost-benefit analyses and exploring various funding options. This may involve pursuing grants, tax incentives, or forging public-private partnerships to distribute the financial burden. By implementing meticulous planning and astute financial management, costs can be minimized, returns can be maximized, and the long-term sustainability of the brownfield redevelopment project can be ensured. Assessing the Potential of Brownfield Redevelopment Brownfield redevelopment  plays a crucial role in revitalizing unused or polluted lands, transforming them into sustainable and vibrant spaces. By repurposing these sites, government agencies can stimulate economic growth, enhance environmental quality, and improve community well-being. Brownfield redevelopment presents an opportunity to leverage existing infrastructure, curb urban sprawl, and foster a more inclusive and resilient future. If your agency owns a brownfield property, it may be possible to revitalize the property through data center or clean energy leasing! To uncover your property's potential for renewable energy or data center leasing, get a free LandApp property report and check out the value index scores . The value index scores will point out the property's highest and best use for different types of energy development. If you're interested in receiving lease offers after generating your report, you can list your property for lease for free on LandApp's marketplace with no obligation to accept any offers. To learn more about LandApp's free services for government agencies or to discuss the potential of your brownfield property, book a free consultation call with our team:

In the realm of real estate, the importance of location cannot be overstated. This main idea has led to spatial analysis. It is a powerful tool that goes beyond traditional methods. It offers valuable insights for property professionals, owners, and investors.  Spatial analysis, using advanced Geographic Information Systems (GIS) , helps us understand complex geographic relationships and how they affect property decisions. By diving deeper into the intricacies of spatial analysis, real estate stakeholders can unlock significant advantages in strategic planning and informed decision-making. Understanding Spatial Analysis in Real Estate At its core, spatial analysis involves evaluating the intricate relationship between geography and property. We need to look at how space is used. We should consider how close it is to important services. We also need to think about social and economic factors that influence property values and attractiveness. Through GIS, stakeholders can access a wealth of geographic data, enabling them to make smarter, data-driven decisions. This method changes raw data into useful information. It helps users see and understand patterns in space that they might miss. The Power of Location Data Location data serves as a critical component of property decision-making processes. It provides essential insights into a property's accessibility, development potential, and how it fits within broader market dynamics. Understanding location data is important for buying homes or developing commercial properties. It helps people assess growth opportunities, market trends, and the balance between supply and demand. Using data to make decisions helps avoid expensive mistakes and improves the value of property transactions. How Spatial Analysis Benefits Real Estate Professionals Targeted Marketing Spatial analysis revolutionizes marketing strategies by enabling real estate professionals to devise highly targeted and effective campaigns. By knowing local people and their buying habits, professionals can adjust their marketing. This helps them connect better with potential buyers or renters. This accuracy boosts marketing success, improves lead quality, increases conversion rates, and helps build strong relationships with clients. Pricing Strategies Accurate property valuation is an enduring challenge in real estate, one that spatial analysis effectively addresses. By leveraging insights on recent sales, market dynamics, and location-specific variables, professionals can establish competitive pricing strategies that reflect true market value. This helps properties sell faster. It also lowers the chance of setting the price too high. This leads to more successful sales and happy clients. Market Trend Analysis The ability to continuously monitor and analyze market trends is a critical advantage afforded by spatial tools. Real estate professionals can swiftly identify growth hotspots, evaluate competitive landscapes, and observe consumer behavior patterns. This information is important for making plans. It helps place properties to take advantage of new trends. This way, you can stay ahead in the market. Benefits for Property Owners Property Valuation: For property owners, spatial analysis provides a clearer understanding of asset value by integrating multiple data points such as property size, condition, and neighborhood sales. This comprehensive valuation process allows owners to make informed decisions regarding property management and potential appreciation, ensuring that their investments are optimized for long-term success. Risk Assessment: Understanding the local environment is crucial for predicting and mitigating potential risks associated with property ownership. Spatial analysis offers a detailed risk management framework by evaluating factors ranging from natural hazards and crime rates to future developments that may impact property values. This proactive approach enables owners to better safeguard their investments against unforeseen challenges. Neighborhood Insights: Spatial analysis provides valuable insights into the social and economic fabric of neighborhoods, which is essential for aligning property developments with community needs. By gaining a deeper understanding of neighborhood dynamics, property owners can ensure harmonious integration and foster positive relationships with surrounding communities. Advantages for Property Investors Investors often face complex decisions about where to allocate resources for maximum return. Spatial analysis aids in this process by identifying locations with high potential for growth and profitability. By considering economic factors, population projections, and urban planning initiatives, investors can make informed decisions that align with their strategic goals and risk tolerance. Spatial analysis empowers investors to evaluate their portfolios by overlaying property performance with location data. This holistic view allows investors to identify strengths and weaknesses, enabling strategic decisions regarding acquisitions and sales. By optimizing their portfolios, investors can maintain a balanced, high-performing collection of assets that consistently deliver strong returns. In the world of property investment, managing risk is paramount. Spatial analysis assists investors in assessing potential threats to property value, including environmental risks and economic instability. By grounding their choices in reasoned analysis, investors can proactively mitigate risks and safeguard their investments. Spatial Patterns and Case Studies To illustrate the practical applications of spatial analysis, consider a real estate firm that identified emerging urban areas with significant growth potential. By leveraging spatial data, the firm strategically expanded its portfolio, resulting in substantial financial gains. In another instance, a property owner used spatial analysis to assess flood risks and implement effective mitigation strategies, protecting their property from potential damage and financial loss. Understanding Spatial Analysis Spatial analysis, within the realm of property, offers an array of benefits that enhance decision-making, reduce risk, and align strategies to market realities. The ease of availability and sophistication of tools in the domain of GIS  further deepen these advantages, providing a competitive edge for those willing to leverage its potential. From the micro-details of property valuation to the macro-strategies of portfolio management, the influence of spatial analysis is indelible, ushering in an era of smarter, more location-aware property dealings. Real estate professionals, property owners, and investors are encouraged to immerse themselves in the world of spatial analysis, for in its comprehensive view lies the power to unveil the full potential and value of the property. By integrating these spatial insights into day-to-day practices, individuals within the property sector can forge ahead with confidence, knowing their decisions are fortified by the best possible data.

In 2010, the Federal Aviation Administration released a study  that suggested that airports are an ideal location for solar panels, stating that:  Solar technology has matured and is now a reliable way to reduce airport operating costs. Environmentally, solar energy shows a commitment to environmental stewardship, especially when the panels are visible to the traveling public. Among the environmental benefits are cleaner air and fewer greenhouse gases that contribute to climate change. Solar use also facilitates small business development and U.S. energy independence.  As a result, airport solar developments have taken off over the last few years. However, when planning solar farms at airports, several critical factors must be considered to ensure not only the efficiency of the solar panels but also the safety and operations of the airport. With proper advanced planning and siting considerations, solar technologies can successfully be installed at airports with minimal or no impacts. This resource provides general information about the most important siting considerations for airport solar farms along with examples of successful solar installations at airports. Key Takeaways: Airports are ideal locations for solar farms due to their large land areas and the environmental benefits they offer, such as reducing operating costs and greenhouse gases. Key considerations for airport solar farms include: Glare and Reflectivity : Conducting glare analyses to ensure solar panels do not affect pilots or air traffic control. Anti-reflective coatings and texturing can reduce glare. Radar Interference : Ensuring solar installations do not interfere with radar systems; maintaining a 250 to 500-foot setback is recommended. Wildlife Impact : Preventing wildlife attractants by installing deterrents and barriers to minimize bird perching and wildlife sheltering. Leasing airport land for solar energy projects can benefit both communities and airports by supporting sustainability, boosting revenue, and reducing electricity costs. Despite the advantages, only 20% of U.S. airports have adopted solar power, presenting an opportunity for growth in this sector. Considerations for Airport Solar Farms Primary considerations for airport solar farms include glare and reflectivity, radar interference, and impact on wildlife. Glare and Reflectivity One of the primary considerations is glare; it is essential to conduct a glare analysis to ensure that solar panels do not reflect sunlight towards air traffic controllers or pilots, potentially compromising safety. The   Federal Aviation Administration (FAA)  requires airports to measure the visual impact of potential solar projects on pilots and air traffic control personnel. The airport must file a Notice of Proposed Construction or Alteration Form 7460-1 that includes a statement that the project will not cause any visual impact. The airport submits the form to the FAA for review and approval. There are physical methods to potentially reduce reflection from panels and the associated glare and glint. These include the application of anti-reflective coatings, and/or texturing to the panels. These methods could help minimize reflection while also improving the efficiency of the solar panels. Radar Interference Although the likelihood of electro-magnetic or radar interference from PV systems is minimal, it is still worth assessing to enhance the assurance of site owners and stakeholders. The location of solar installations must be strategically chosen to avoid interference with radar systems and navigation aids. PV arrays typically are lower in height compared to most other structures in and around airfields. Airport radar systems, such as airport surveillance radar, are usually mounted on towers or elevated platforms. The FAA has conducted several case studies showing that maintaining a setback of 250 to 500 feet between the front edges of a PV array and existing radar equipment is effective in preventing potential issues related to obstruction or signal reflection. Regardless, careful planning and collaboration with aviation authorities are imperative to mitigate any potential risks associated with solar farm installations at airports. Wildlife Impact Currently, there is limited data quantifying the potential impact of solar systems on wildlife in airport environments. Nonetheless, when locating solar systems at airports, it is crucial to prevent the creation of wildlife attractants, like perches or shaded areas. Strategies can be implemented to reduce the attraction of birds to the solar system for perching or sheltering. These strategies may involve installing spikes or similar deterrent systems on top of each panel to prevent birds from perching. Additionally, considering closures or barriers behind panels can deter birds and wildlife from seeking shelter in those spaces. Denver International Airport (DIA) Solar Farm DIA serves as an excellent example of solar energy production on airport land . The solar projects were successfully executed through private-public partnerships, facilitated by ground lease and power purchase agreements. Moreover, interconnection agreements were established with the local utility provider. Each solar PV system owner, unique to every system, enjoys federal tax incentives, payments for renewable energy certificates, rebates for solar rewards from the local utility provider, and supplies power to DIA. Woods Allee, director of Technical Programs in the Planning and Development Office at DIA, said that there was little to no impact to pilots or air traffic control during construction of the solar farms at DIA. Additionally, no complaints of interference from the solar farm have been made. By operating 10 megawatts (MW) solar facilities, DIA not only reduces its carbon footprint but also benefits from lower-than-average electricity costs for the energy generated by the solar arrays installed after 2012. Any surplus electricity is sold back to the utility through the Xcel Solar Rewards program. How to Lease Airport Land for Solar Energy Leasing airport land  for solar projects benefits local communities and airports alike. There are many benefits of airport solar farms - they support sustainability, boost revenue, cut electricity costs, and maximize resources without disrupting other sectors. Despite this, only about 20% of U.S. airports have embraced solar power in the past decade. As more airports realize these advantages and shift to solar energy, it will yield positive environmental and economic outcomes, creating a win-win situation for all.  Airport landowners can now list their property for solar lease  opportunities on LandApp's exclusive marketplace at no cost, gaining exposure to a broad network of solar energy developers and investors. Additionally, LandApp offers support for site analysis, prioritization, and procurement materials, presenting a tailored solution to help airports harness their land for renewable energy.

Key Takeaways: Maryland is a leading state in solar farm development due to incentives promoting renewable energy. Landowners can earn income through solar lease payments, providing long-term financial stability. The leasing process involves negotiation, option agreements, and eventual lease agreements. Only about 20% of solar options become active solar farms due to infrastructure bottlenecks. Maryland offers incentives like tax credits and Renewable Energy Credits (RECs) to encourage solar development. Solar farms in Maryland typically cover 60 acres and generate about 5.2 MW, powering around 500 households. LandGate provides data to help landowners assess the value of their land for solar leasing. What Should Landowners Know About Solar Farm Development in Maryland? As of September 2023, Maryland is one of the most active states for solar farm activity and development. The number of solar farms in Maryland have been increasing exponentially over the past decade. This is a direct result of the implementation of various incentives promoting renewable energy generation across the state. Many solar developers are actively planning new projects across the state. This presents a great opportunity for landowners to earn a steady stream of income from their land through solar lease payments , also known as solar payments. Landowners in Maryland are receiving offers from developers to lease their land for solar farms. They often wonder how much their land is worth for a solar farm and if they are receiving a good offer. Leasing land for solar farms helps landowners provide their future generations with long-term financial stability. There are several factors that go into solar farm valuations that landowners and realtors should consider. LandGate is a marketplace that provides data intelligence to landowners while also providing them the opportunity to connect with Maryland solar developers. In a traditional way, developers would knock on landowners' doors or cold-call them. This old-fashioned way is not easy for landowners. It can be perceived as unwanted solicitation at a time when the landowner is not ready and doesn’t have enough information to feel comfortable talking about a solar farm on their land. LandGate provides useful data to landowners or to their agent to inform them for free about the value of their land for solar farm leasing. Equipped with more information, landowners can make good and fast decisions about pursuing a solar lease. What is the Process for Leasing Land for a Solar Farm in Maryland? Step 1: Solar Lease Negotiation Period in Maryland The solar lease negotiation process is the first step landowners take when interested in having a solar farm on their property. Land professionals can assist landowners during this period to make sure they are receiving the best deal possible but also understand the time period between signing the lease and having an active solar farm on their land. During the negotiations, landowners can negotiate solar lease payments, the length of the lease for the solar farm, and what the percentage of the escalator is to combat inflation. Step 2: Solar Lease Option Agreement in Maryland The next step is for the landowner to get a solar farm option agreement. At that point, the solar developer has done a preliminary study, also called a feasibility study, to know if the site is potentially suitable for solar farm development. Why Can’t I Get a Solar Lease Agreement Directly? The process of a solar farm project in Maryland begins with optioning the land, which is called “site control” by developers. The reason solar developers cannot go straight to a solar lease is because they have to evaluate the land thoroughly. Typically the initial screening study is good enough that this first due diligence process is all that is needed. Another larger uncertainty for solar developers is to know if the solar project will be accepted by the utility on the electrical infrastructure (or electrical network). We refer to this phase as “utility’s application” in the graph above and developers refer to this phase as “queue submission”. This means that the solar project enters the interconnection queue of that region waiting for regulatory approval. These queues are known as Independent Systems Operator (ISO) or Regional Transmission Organization (RTO). During this period, the analysis of possible engineering and land factors is conducted to determine the feasibility of the project to be constructed and connected to the grid. This is the reason why the solar developer starts with an option, as not all solar projects are approved by the ISO/RTO. How Likely Will My Maryland Solar Option Become a Solar Lease? At the moment, about 20% of solar options become a solar lease and are built into a solar farm. Currently, the electrical infrastructure network is a big bottle neck. There are more applications of solar projects to get on transmission lines than available capacity. However, governments are aware of this situation and are working to ease it, in order to foster more solar development. This means that it will likely get resolved in the next few years. The problem of available capacity applies only to utility scale solar farm projects, which are typically greater than 5MW capacity. Where Can a Landowner Get More Information About the Solar Lease / Option Period in Maryland? LandGate assists landowners with determining the value of their land for a solar farm. We do this by taking into account the proximity of substations, transmission lines, and state incentives - each of which play a role in site control. Am I Getting Paid During the Solar Option Period? Yes. Solar payments start during the option period but are usually smaller compared to the solar payments during the lease or construction phase of the solar farm. Step 3: Solar Lease Agreement in Maryland Once the availability of grid capacity is confirmed, the solar project is moved to a “planned” phase. During this time, the developers will exercise the solar farm option agreement to become a solar farm lease agreement. Typically larger solar rent payments start at this time. Step 4: Solar Farm Construction in Maryland Solar payments are phased as the project progresses. It starts with small solar lease payments during the option phase. Then it increases during the solar lease phase, it increases again during the construction phase of the solar farm, and the largest solar payment occurs when the solar farm is active and generating electricity. How Long Does It Take to Build a Solar Farm in Maryland? Usually it will take between 1 to 2 years to build a utility scale solar farm. It takes less time to build a community solar farm since they are usually smaller in size. Step 5: Active Solar Farm in Maryland After the construction has been completed, the solar farm is now considered ‘active.’ For landowners, this phase is called ‘production,’ as it signifies that their land is currently producing energy for the electrical grid that it is interconnected with. The production phase lasts anywhere from 25 to 50 years depending on what was negotiated on the lease. What Can a Solar Farm Power In Maryland? In Maryland, the average solar farm size is 60 acres generating approximately 5.2 megawatts (MW) of electricity when operating under optimal conditions. This output has the potential to cater to the energy needs of around 500 households as the typical electricity consumption of an average household in Maryland stands at 14,400 kilowatt-hours per year. What is the Impact of the IRA and Other Factors in Maryland? Maryland solar incentives have encouraged solar companies to develop more projects across the state. Additionally, favorable market conditions for electricity prices are encouraging investment into the solar sector in Maryland. Landowners and real estate agents should have an understanding of these incentives and market conditions to be prepared for potential offers for solar project deals. Inflation Reduction Act: This bill passed in 2022 and became effective at the beginning of 2023 provides incentives to reduce renewable energy costs for organizations on a business, educational institution, and state level. More specifically, in Maryland, solar energy is eligible for a tax credit. Public Utilities Commission of Maryland: Public Utilities Commission of Maryland organizes and administers incentive programs to promote renewable energy and zero-carbon energy generation across Maryland. They are requiring large electric utility companies to source a minimum of 50% of their electricity from renewable sources by 2030. However, in 2021, only 13% of the electricity generated came from renewable sources. This was short of their 23.3% goal. Since coming up short of this goal, Maryland is providing Renewable Energy Credits (RECs). RECs are certificates that are created when a renewable energy generating facility produces electricity. RECs may be sold to the utility for meeting the state’s Renewable Portfolio Standards. Maryland Solar Renewable Energy Credits (SRECs): SRECs in Maryland are financial incentives for solar energy system owners. They can be sold to electric utilities that need to meet their renewable energy targets, which provides additional revenue for solar projects. The increase in LMP pricing has made solar energy an attractive option for electricity generation in Maryland. LMP is a pricing method used in electricity markets to determine the cost of electricity at specific locations (called ‘nodes’) within the electrical grid. A PPA (Power Purchase Agreement) is a contract between a renewable energy developer (such as a solar company) and a power purchaser (such as a utility). Over the last three years, Maryland has only experienced a 5.47% increase in PPA pricing and an average price LMP price increase of 93.2% (this is expected to decrease by 1% in 2024). In the context of solar energy projects in Maryland, the relationship between LMP and PPA pricing lies in how the PPA sets the pricing terms for the electricity being sold. The fixed price in the PPA provides certainty to the solar developer about the revenue they will receive for the electricity that they produce. Meanwhile, the LMP serves as the market price for electricity at a specific node. When the LMP at a particular node in the grid is higher than the contract price specified in the PPA, it benefits the solar company, as they will receive the contract price and sell the electricity at a higher market price (increasing their revenues). This combination has aided in the rise of solar projects in Maryland. Commercial, Community, & Behind-the-Meter Maryland Solar Farms Typically, landowners and land professionals think of solar farms as huge plots of land covered in solar panels out in the middle of nowhere. However, this usually is not the case! In Maryland, solar farms typically 60 acres, allowing about 5.2 MW of electricity to be produced under ideal conditions. Commercial solar projects are the commonly largest energy projects being about 40+ acres of land. These solar farms usually feed their energy into the grid to the surrounding area. Realistically these solar farms can be any size as it depends on the capacity available within the grid. Community solar farms in Maryland serve energy customers directly within the same area or community. These solar farms tend to be smaller in size in relation to acreage and megawatts. Community solar is different from residential solar as residential solar panels are found on top of roof tops. Community solar projects can be larger, it just depends on the location. Commercial, residential, and industrial solar farms are all considered to be behind-the-meter solar farms. Behind-the-meter means that they are intended to generate power primarily for on-site consumption rather than selling it to the grid. Community solar and utility scale solar farms generate energy that is utilized in the grid to send it to all consumers a part of that grid. This means that they are front-of-the-meter solar farms. Discover Land’s Value For Solar Leasing in Maryland The solar energy industries within Maryland are growing to achieve energy goals for clean energy development. This makes it easier for landowners and real estate agents to participate in solar development deals. Landowners in Maryland can receive a free solar leasing estimate by identifying and claiming ownership of their parcel on our map. Realtors can assist their clients in learning about their property’s potential for solar energy by using LandGate. Land professionals can utilize LandGate’s data and analytics to provide their clients with information about their resource’s potential.

Wind turbines have become iconic symbols of renewable energy, representing one of the most sustainable ways to generate electricity. The growing popularity of wind power is transforming how we think about energy production. Property owners are increasingly interested in harnessing the benefits of wind turbines, making it essential to understand how weather conditions affect their efficiency and longevity. For landowners interested in listing their property for lease for a potential wind farm, it is important to understand the weather conditions that may affect your property. Wind energy developers take into consideration the weather conditions in certain parts of the country. Are you curious about your property’s wind farm potential ? Get a free property report and then create a free listing to start receiving offers! Overview of Wind Energy in the United States The United States is a global leader in wind energy, with vast wind farms scattered across the country. From the Great Plains to coastal regions, wind power contributes significantly to the nation's renewable energy portfolio. According to the American Wind Energy Association (AWEA) , wind energy accounts for nearly 8% of the country's electricity generation. This makes wind power a crucial component of our sustainable energy future. However, the efficiency of wind turbines can vary based on several factors, including weather conditions, geography, and technological advancements. Weather Conditions Impact Wind Turbines Wind Speed and Direction The speed and direction of the wind are fundamental factors that determine wind turbine efficiency. Wind turbines are designed to operate within specific wind speed ranges, known as the cut-in and cut-out speeds. The cut-in speed is the minimum wind speed at which a turbine begins to generate electricity, while the cut-out speed is the maximum wind speed beyond which the turbine shuts down to avoid damage. Consistent wind speed is crucial for maintaining optimal wind power generation. Variable wind speeds can lead to fluctuations in energy output, affecting the overall efficiency of the wind farm. The direction of the wind plays a significant role in turbine performance. Modern wind turbines can adjust their orientation to align with the wind direction, ensuring maximum energy capture. Seasonal Variations Seasonal changes can also impact wind turbine efficiency. During the winter months, colder air temperatures can increase air density, resulting in higher wind speeds. This can enhance the performance of wind turbines, leading to greater energy production. Conversely, during the summer, warmer temperatures can decrease air density, reducing wind speed and, consequently, energy output. Surface temperature variations also significantly affect wind turbines. Extreme heat or cold can cause materials and components to expand or contract, leading to structural damage and malfunctions over time. To counter this, wind turbines are constructed with materials capable of withstanding a broad temperature range. Some turbines employ advanced thermal management systems to regulate component temperatures, ensuring longevity and optimal performance in diverse weather conditions. Understanding these seasonal variations allows property owners and wind farm operators to plan accordingly. By analyzing historical wind data, they can predict periods of high and low wind energy production, optimizing their maintenance schedules and energy storage strategies. Extreme Weather Conditions Severe weather conditions , such as hurricanes, tornadoes, and severe storms, can pose significant challenges to wind turbines. High winds, also known as straight - line wind , lightning, and ice accumulation can damage turbine blades, nacelles, and other critical components. For instance, during Hurricane Harvey in 2017, several wind turbines in Texas sustained damage from strong winds and flooding. To mitigate these risks, wind turbines are equipped with various safety mechanisms, such as automatic shutdown systems and lightning protection. Regular maintenance and inspections are also essential to ensure the turbines remain in good working condition, even in the face of extreme weather. The Influence of Geography on Wind Energy Potential High and Low Wind Areas in the U.S. Geography plays a crucial role in determining the wind energy potential of a given location. The United States boasts diverse landscapes, each with varying wind patterns. For example, the Great Plains, often referred to as the "wind belt," is known for its consistent and robust wind speeds, making it an ideal region for wind farms. Conversely, areas with complex terrain, such as mountains and valleys, can experience more variable wind patterns. Coastal regions also offer significant wind energy potential due to the steady sea breezes. Understanding the geographical factors influencing wind speed and direction helps property owners identify the best locations for installing wind turbines. Challenges and Solutions for Weather-Related Issues Technology Advancements Advancements in wind turbine technology are continually addressing weather-related challenges. Innovations such as larger rotor blades, taller towers, and improved materials enhance the efficiency and durability of wind turbines. The integration of smart sensors and data analytics allows for real-time monitoring of weather conditions and turbine performance. These technological improvements enable wind turbines to operate effectively under a wider range of weather conditions, maximizing energy production and minimizing downtime. Property owners can benefit from staying informed about the latest advancements and incorporating them into their wind energy systems. Maintenance Strategies for Wind Turbines Regular maintenance is essential for ensuring the longevity and efficiency of wind turbines. Preventive maintenance, including inspections, cleaning, and component replacement, helps identify and address issues before they become major problems. For example, routine blade inspections can detect cracks or erosion caused by weather exposure, allowing for timely repairs. Predictive maintenance, powered by AI and machine learning algorithms, can analyze data from sensors to predict potential failures. This proactive approach minimizes unplanned downtime and extends the lifespan of wind turbines, ensuring consistent energy production. Real-life Examples of Weather Impact on Wind Farms Real-life case studies provide valuable insights into how weather conditions impact wind farms. One notable example is the Shepherds Flat Wind Farm in Oregon, one of the largest wind farms in the United States. Situated in a high-wind area, this wind farm benefits from consistent wind speeds, resulting in high energy production. Another example is the Alta Wind Energy Center in California, which experiences seasonal variations in wind speed. By analyzing historical wind data, operators have optimized their maintenance schedules to coincide with periods of lower wind energy production, ensuring minimal disruptions. Future Outlook and Opportunities for Wind Energy in the U.S. The future of wind energy in the United States looks promising, with continued advancements in technology and growing investments in renewable energy. The Biden administration's commitment to achieving net-zero emissions by 2050 has spurred initiatives to expand wind energy infrastructure. Offshore wind projects, in particular, are gaining traction, with several states planning large-scale installations along their coastlines. Property owners have a unique opportunity to contribute to this renewable energy revolution. By investing in wind turbines and staying informed about the latest developments, they can harness the power of wind to reduce their carbon footprint and achieve energy independence. Understanding Straight Line Wind Risks Understanding how weather affects wind turbines is crucial for optimizing wind energy production and ensuring the longevity of wind farms. From the speed and direction of the wind to seasonal variations and extreme weather conditions, various factors influence the efficiency of wind turbines. By leveraging technology advancements, implementing effective maintenance strategies, and considering geographical factors, property owners can maximize the benefits of wind energy. The future of wind energy in the United States is bright, offering exciting opportunities for those willing to invest in this sustainable and renewable energy source. If you are interested in understanding the potential your property has for a wind farm, LandGate provides all landowners with a free property report. This report contains information about their property’s resources and estimated valuations for those resources.

Key Takeaways: Growing Solar Opportunities : Louisiana is experiencing a surge in solar farm development due to state incentives, offering landowners lucrative leasing opportunities. Leasing Process : The process involves negotiation, option agreements, and eventual lease agreements, with payments increasing as projects progress. LandGate's Role : LandGate provides data intelligence to help landowners understand the value of their land for solar leasing, facilitating informed decisions. Incentives and Market Conditions : Various incentives, including tax credits and net metering, along with favorable market conditions, are driving solar investments. Project Feasibility : Only about 20% of solar options become leases due to grid capacity constraints, but improvements are expected. Types of Solar Farms : Louisiana hosts commercial, community, and behind-the-meter solar farms, each serving different energy needs. Long-term Benefits : Solar farms can provide long-term financial stability for landowners, with projects lasting 25 to 50 years. What Should Landowners Know About Solar Farm Development in Louisiana? As of October 2023, Louisiana is a promising state for solar farm activity and development. The number of solar farms in Louisiana is projected to increase exponentially over the next decade. This is a direct result of the implementation of various incentives promoting renewable energy generation across the state. Many solar developers are actively planning new projects across the state. This presents a great opportunity for landowners to earn a steady stream of income from their land through solar lease payment s , also known as solar payments. Landowners in Louisiana are receiving offers from developers to lease their land for solar farms. They often wonder how much their land is worth for a solar farm and if they are receiving a good offer. Leasing land for solar farms helps landowners provide their future generations with long-term financial stability. There are several factors that go into solar farm valuations that landowners and realtors should consider. LandGate is a marketplace that provides data intelligence to landowners while also providing them the opportunity to connect with Louisiana solar developers. In a traditional way, developers would knock on landowners' doors or cold-call them. This old-fashioned way is not easy for landowners. It can be perceived as unwanted solicitation at a time when the landowner is not ready and doesn’t have enough information to feel comfortable talking about a solar farm on their land. LandGate provides useful data to landowners or to their agent to inform them for free about the value of their land for solar farm leasing. Equipped with more information, landowners can make well-informed and fast decisions about pursuing a solar lease. What is the Process for Leasing Land for a Solar Farm in Louisiana? Step 1: Solar Lease Negotiation Period in Louisiana The solar lease negotiation process is the first step landowners take when interested in having a solar farm on their property. Land professionals can assist landowners during this period to make sure they are receiving the best deal possible but also understand the time period between signing the lease and having an active solar farm on their land. During the negotiations, landowners can negotiate solar lease payments, the length of the lease for the solar farm, and what the percentage of the escalator is to combat inflation. Step 2: Solar Lease Option Agreement in Louisiana The next step is for the landowner to get a solar farm option agreement. At that point, the solar developer has done a preliminary study, also called a feasibility study, to know if the site is potentially suitable for solar farm development. Why Can’t I Get a Solar Lease Agreement Directly? The process of a solar farm project in Louisiana begins with optioning the land, which is called “site control” by developers. The reason solar developers cannot go straight to a solar lease is because they have to evaluate the land thoroughly. Typically ,the initial screening study is good enough that this first due diligence process is all that is needed. Another larger uncertainty for solar developers is to know if the solar project will be accepted by the utility on the electrical infrastructure (or electrical network). We refer to this phase as “utility’s application” in the graph above and developers refer to this phase as “queue submission”. This means that the solar project enters the interconnection queue of that region waiting for regulatory approval. These queues are known as Independent Systems Operator (ISO) or Regional Transmission Organization (RTO). During this period, the analysis of possible engineering and land factors is conducted to determine the feasibility of the project to be constructed and connected to the grid. This is the reason why the solar developer starts with an option, as not all solar projects are approved by the ISO/RTO. How Likely Will My Louisiana Solar Option Become a Solar Lease? At the moment, about 20% of solar options become a solar lease and are built into a solar farm. Currently, the electrical infrastructure network is a big bottle neck. There are more applications of solar projects to get on transmission lines than available capacity. However, governments are aware of this situation and are working to ease it, in order to foster more solar development. This means that it will likely get resolved in the next few years. The problem of available capacity applies only to utility scale solar farm projects, which are typically greater than 5 MW capacity. Where Can a Landowner Get More Information About the Solar Lease / Option Period in Louisiana? LandGate assists landowners with determining the value of their land for a solar farm. We do this by taking into account the proximity of substations, transmission lines, and state incentives - each of which play a role in site control. Am I Getting Paid During the Solar Option Period? Yes. Solar payments start during the option period but are usually smaller compared to the solar payments during the lease or construction phase of the solar farm. Step 3: Solar Lease Agreement in Louisiana Once the availability of grid capacity is confirmed, the solar project is moved to a “planned” phase. During this time, the developers will exercise the solar farm option agreement to become a solar farm lease agreement. Typically, larger solar rent payments start at this time. Step 4: Solar Farm Construction in Louisiana Solar payments are phased as the project progresses. It starts with small solar lease payments during the option phase. Then it increases during the solar lease phase, it increases again during the construction phase of the solar farm, and the largest solar payment occurs when the solar farm is active and generating electricity. How Long Does It Take to Build a Solar Farm in Louisiana? Usually it will take between 1 to 2 years to build a utility-scale solar farm. It takes less time to build a community solar farm since they are usually smaller in size. Step 5: Active Solar Farm in Louisiana After the construction has been completed, the solar farm is now considered ‘active.’ For landowners, this phase is called ‘production,’ as it signifies that their land is currently producing energy for the electrical grid that it is interconnected with. The production phase lasts anywhere from 25 to 50 years depending on what was negotiated on the lease. What Can a Solar Farm Power in Louisiana? In Louisiana, the average solar farm size for active farms is 150 acres generating approximately 15 megawatts (MW) of electricity when operating under optimal conditions. This output has the potential to cater to the energy needs of around 9,117 households as the typical electricity consumption of an average household in Louisiana stands at 14,412 kWh per year. What is the Impact of the IRA and Other Factors in Louisiana? Louisiana solar incentives have encouraged solar companies to develop more projects across the state. Additionally, favorable market conditions for electricity prices are encouraging investment into the solar sector in Louisiana. Landowners and real estate agents should have an understanding of these incentives and market conditions to be prepared for potential offers for solar project deals. Inflation Reduction Act: This bill passed in 2022 and became effective at the beginning of 2023 provides incentives to reduce renewable energy costs for organizations on a business, educational institution, and state level. More specifically, in Louisiana, solar energy is eligible for a tax credit. Net Metering: With net metering, consumers are allowed to get retail credit for the surplus electricity generated from local power systems that are sent back to the grid. Home Energy Loan Program (HELP): The Home Energy Loan Program (HELP) offers homeowners low-interest, five-year loans for energy efficiency projects, with the Louisiana Department of Natural Resources (LDNR) providing up to $6,000 at a fixed 2% interest rate. Rural Energy for America Program (REAP): As of March 2021, the Rural Energy for America Program (REAP) provides guaranteed loan financing and grants for renewable energy and energy efficiency projects to agricultural producers and rural small businesses. The combination of an increase in LMP pricing plus a decline in PPA pricing has made solar energy an attractive option for electricity generation in Louisiana. LMP is a pricing method used in electricity markets to determine the cost of electricity at specific locations (called ‘nodes’) within the electrical grid. A PPA ( Power Purchase Agreement ) is a contract between a renewable energy developer (such as a solar company) and a power purchaser (such as a utility). Over the last three years, Louisiana experienced a 5.9% reduction in PPA pricing and an average price LMP price increase of 56.2% (this is expected to increase by an additional 17.7% in 2024). In the context of solar energy projects in Louisiana, the relationship between LMP and PPA pricing lies in how the PPA sets the pricing terms for the electricity being sold. The fixed price in the PPA provides certainty to the solar developer about the revenue they will receive for the electricity that they produce. Meanwhile, the LMP serves as the market price for electricity at a specific node. When the LMP at a particular node in the grid is higher than the contract price specified in the PPA, it benefits the solar company, as they will receive the contract price and sell the electricity at a higher market price (increasing their revenues). This combination has aided in the rise of solar projects in Louisiana. Commercial, Community, & Behind-the-Meter Louisiana Solar Farms Typically, landowners and land professionals think of solar farms as huge plots of land covered in solar panels out in the middle of nowhere. However, this usually is not the case! In Louisiana, solar farms are typically 150 acres, allowing about 15 MW of electricity to be produced under ideal conditions. Commercial solar projects are the commonly largest energy projects being about 40+ acres of land. These solar farms usually feed their energy into the grid to the surrounding area. Realistically these solar farms can be any size as it depends on the capacity available within the grid. Community solar farms in Louisiana serve energy customers directly within the same area or community. These solar farms tend to be smaller in size in relation to acreage and megawatts. Community solar is different from residential solar as residential solar panels are found on top of roof tops. Community solar projects can be larger, it just depends on the location. Commercial, residential, and industrial solar farms are all considered to be behind-the-meter solar farms. Behind-the-meter means that they are intended to generate power primarily for on-site consumption rather than selling it to the grid. Community solar and utility scale solar farms generate energy that is utilized in the grid to send it to all consumers a part of that grid. This means that they are front-of-the-meter solar farms. Discover Land’s Value For Solar Leasing in Louisiana The solar energy industries within Louisiana are growing to achieve energy goals for clean energy development. This makes it easier for landowners and real estate agents to participate in solar development deals. Landowners in Louisiana can receive a free solar leasing estimate by identifying and claiming ownership of their parcel on our map. Realtors can assist their clients in learning about their property’s potential for solar energy by using LandGate. Land professionals can utilize LandGate’s data and analytics to provide their clients with information about their resource’s potential.