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- Wind Leasing Questions Answered for Land Realtors
In the rapidly evolving real estate landscape, wind energy projects are becoming an increasingly critical consideration for land realtors. With the shift towards sustainable energy sources, understanding the intricacies of wind leasing is essential for those looking to help their clients get the most value from their land while maximizing the potential of their land listings. This blog post aims to explain the process of wind leasing and answer the most pressing questions land realtors and their clients may have. From determining land suitability for wind energy projects to navigating the negotiation process, we'll provide you with the insights needed to advise your clients and position your listings advantageously in the growing wind energy market. Is land still able to be used when wind turbines are present? Wind turbines themselves do not take up much space. In fact, they only take up just a few acres of land. However, wind turbines are placed far apart to not obstruct the flow of wind that accesses the turbines, so wind developers generally prefer large tracts of land for wind farms. How long does it take for a wind farm to be built? The entirety of a wind lease contract generally outlines a length of 2-10 years for the option period, and 30-50 years for development and operation phase. However, wind lease lengths vary across the country and are completely negotiable with the wind developer. What does commission look like once a wind farm lease has been secured? Commission earned on wind energy deals are typically treated similarly as commercial real estate commissions. Each realtor/broker will be paid based on their specific listing agreement with their client. In most cases, a percent commission of payments that are made over time are paid to the realtor/broker. Since wind leases can extend for up to 50 years, that means a wind energy lease commission could earn revenue for a land professional for a significant period of time. In other cases, real estate professionals have chosen to get paid upfront for their commission. What type of land is best suited for a wind farm? Large, wide open spaces are perfect for wind farm development. Wind developers typically look for large tracts of land (80+ acres) located near electrical infrastructure (substations and transmission lines). How can I judge if my client’s land holds value for a wind farm? The best way to judge your client’s land for wind farm potential is by using LandApp Pro . LandApp Pro has all of the data needed to discover the value of your client’s property for a potential wind lease. You can view any property's proximity to substations, transmission lines, distribution lines, wind speeds, and local renewable energy incentives. How much land is needed to build a wind farm? Most wind farm developers are looking for large tracts of land, even though only a small percentage of the land is used for the actual placement of the wind turbines. How can land realtors get the best deal for their clients? The best way to get the highest wind lease offer for your clients is to enter the property into a competitive marketplace like LandApp. Numerous energy developers use LandApp's data and marketplace to evaluate and plan new projects. Listing on LandApp is free, and there are no obligations to accept any offers that you receive through a listing: To discover the energy potential of any U.S. property, subscribe to LandApp Pro for just $6 per month. Access nationwide ownership information, unlimited property reports, and more:
- Types of Topography That Could Affect Property Development
Topography is the fascinating study of land surfaces, encompassing their physical features and their profound impact on the environment. In the realm of property development, topography plays an indispensable role, profoundly influencing the design, construction, and upkeep of buildings and infrastructure. In the captivating world of real estate and property development, the lay of the land holds great significance. It extends beyond mere geographic location, encompassing the land's contours, elevation, and distinctive physical attributes. Such valuable insights are skillfully unveiled through topographic maps, an invaluable tool employed by developers across the United States. From the sprawling plains of the Midwest to the majestic peaks of the Rockies, our LandApp proudly offers unparalleled topographic insights that unveil the complete narrative of each land parcel. This indispensable tool provides vital information that shapes every aspect, from meticulous design and construction to the promising potential for renewable energy initiatives like solar or wind farms! Key Takeaways: The blog discusses various topographies—flat, hilly, mountainous, coastal, wetland, and urban—and their impact on property development. Each terrain type presents unique challenges and opportunities that affect design, construction, and costs. Flat Terrain : Offers ease of construction but may require additional drainage solutions. Hilly and Mountainous Terrain : Demands extensive grading and specialized techniques due to steep slopes and unstable soils. Coastal Areas : Provide scenic views but face environmental regulations and hazards like erosion and storm surges. Wetlands : Pose flooding risks but offer conservation and recreational opportunities. Urban Areas : Present redevelopment prospects despite limited space and varied topographical characteristics. Property owners can utilize LandApp to view the topography of properties across the United States. 1. Flat Topography Flat topography is characterized by a land surface that is relatively even and level, with little to no variation in elevation. This type of terrain is favorable for property development due to its minimal construction and maintenance challenges. Building design and construction can be easily executed on flat land, providing cost-effective solutions for developers. However, one potential drawback is the absence of natural drainage, which may necessitate additional engineering measures. This type of topography is ideal for solar farm development . Solar developers utilize LandGate’s unique marketplace to search for potential building sites for their projects! Listing on LandGate’s online marketplace is free and gets property in front of high-intent energy developers. The listing process is easy for property owners and real estate professionals to quickly create a free property listing. 2. Hilly Topography Hilly terrain is characterized by steep slopes and variations in elevation, making it a more demanding landscape for property development. Constructing on hilly land can be costly due to the need for extensive grading or earthmoving to establish a level surface for building. Moreover, hilly topography can pose difficulties for infrastructure such as roads and utilities, requiring careful planning and design to accommodate the terrain. Our detailed contour lines pave the path for creating an infrastructure that harmonizes with this distinctive terrain, overcoming the challenges posed by hilly topography. 3. Mountainous Topography Mountainous topography is known for its towering peaks and rugged landscapes, presenting one of the most formidable challenges for property development. Constructing on mountainous terrain can be incredibly arduous and costly due to steep slopes, unstable soils, and harsh weather conditions. It may also necessitate specialized engineering and construction techniques to ensure the safety and stability of any structures erected on such land. In the United States' mountainous regions, the topography becomes even more intricate. Building in these areas is not for the faint-hearted, but armed with our comprehensive topographic surveys, developers will possess the essential data required to navigate this demanding landscape. 4. Coastal Topography Coastal topography encompasses a combination of land and water, including beaches, cliffs, and wetlands. This type of terrain poses both advantages and challenges for property development. On one hand, coastal areas offer desirable locations for residential or commercial projects, providing scenic views and recreational opportunities. On the other hand, they are subject to environmental regulations and potential hazards such as erosion, storm surges, and rising sea levels. Our LandApp tool helps strike a balance between the desire for breathtaking ocean views and the environmental considerations associated with this unique territory. Being able to locate specific properties along coastal states is easy to do on LandGate’s marketplace. 5. Wetland Topography The topography of wetlands is characterized by low-lying areas where water tables are high or standing water is present. This type of topography can present challenges for property development due to the risk of flooding and the difficulty of constructing buildings on unstable soil. However, wetlands also provide distinct opportunities for environmental conservation and recreational activities such as bird watching and hunting. Our topographic surveys can shed light on the unique conservation and recreational potential that this land holds. 6. Urban Topography Urban topography is defined by human-made structures, roads, and utilities that are constructed on natural landscapes. Urban areas can exhibit various topographical characteristics, ranging from flat terrain to hilly or coastal regions, depending on their location. Property development in urban environments presents unique challenges and prospects, such as limited space and the potential for redevelopment or revitalization projects. Even in urban landscapes, where natural topography is concealed by man-made structures, our topographic services unveil the underlying land attributes, shedding light on opportunities for redevelopment. Understanding and addressing the topography of a specific area is paramount for property developers, influencing the feasibility, design, and cost of projects. Whether the terrain is flat, hilly, mountainous, coastal, wetland, or urban, each type presents distinct challenges and opportunities that developers must carefully evaluate and plan for. Through meticulous planning and engineering, developers can successfully navigate any topography, fostering the success and sustainability of their projects while benefiting both the environment and society. Topography, as the hidden character of every piece of land, serves as a crucial factor in guiding developers toward unlocking the full potential of properties, with topographic surveys providing invaluable insights for informed decision-making.
- Leasing Property for Data Centers in Indiana
As the demand for data centers continues to soar, Indiana has emerged as a prime location for hosting these vital facilities. This resource outlines the essential steps involved in the process of leasing properties in Indiana for data centers, providing practical insights and best practices to ensure a successful lease agreement. Additionally, it highlights the significant growth of the data center industry in Indiana, discussing the factors driving this boom and what landowners need to be aware of to capitalize on this opportunity. Whether you are a seasoned property owner or considering leasing for the first time, this resource aims to equip you with the information necessary to navigate this evolving market landscape. What should landowners know about data center development in Indiana? Over the last decade, the data center market has been growing rapidly, undergoing a remarkable transformation. Data centers serve to be an essential part in maintaining internet growth and online service demand. They serve as specialized locations of vast computer networks and storage systems that work around the clock to process, store, and manage data.The North American data center market is projected to grow to $143.52 billion by 2028, with rapid demand expansion and a CAGR of 17.1%. Indiana has recently become an attractive location for data center development in the United States over the last few years. Indiana has witnessed a growing demand for cloud services and data storage and is home to over more than 30 data operational data centers. Over the last year, large market players such as Amazon, Google, and Meta have announced plans to expand large hyperscale projects in the area due to its strategic location, energy resources, tax incentives and growth potential. Data center projects are gaining increasing traction as they create opportunities to provide benefits not only for the general economy and the job market, but also for landowners across the state. LandGate provides a marketplace that connects property owners of all types who want to sell or lease their properties directly to data center developers seeking suitable properties in Indiana for data centers, while also providing useful data to owners to help them make informed decisions through this process. Equipped with information about the value of their land, capitalization rates, and much more, LandGate provides landowners in Indiana with extensive property data at no cost to help navigate the process of leasing or selling their land for a data center. To learn more about your property's potential suitability for a data center, get a free Property Report by finding your property on LandGate's map, and check out the data center value index score, which rates your property's suitability for a data center on a scale of 0-100: Why is it attractive to lease or sell your property for data centers in Indiana? Indiana has shown great potential for development in the area and offers a large scale of return on existing data center projects in the area. With projects ranging from colocation to hyperscale and enterprise data centers, major players are investing in large scale projects in the area. For example, Amazon’s $11 billion data center campus in New Carlisle is set to spread over 800 acres of land. Other companies such as Google, Meta, Equinix and Amazon Web Services have set up data centers in the area and have been quick to integrate artificial intelligence and environmental sustainability measures into their projects. While the buildable acreage for data centers in Indiana can vary according to project specifications, the typical size range for small facilities can start off with just a few acres while large-scale projects cover an average of 100-150 acres. Larger data centers in Indiana can exceed 200 to 300 acres. A medium-sized data center will typically range between 50-90 acres of land, and is the most popular size of property that developers demand in Indiana. Along with the financial gain from either leasing or selling their property for data centers, landowners in Indiana should be aware of the benefits that developing a data center has on the regional and state economy. Over the last three years, Indiana has shown promising development and job generation opportunities in the data center industry. For example, Google’s $2 billion data center in Fort Wayne created over 200 full time positions while Meta’s $800 million data center project in Jeffersonville created over 300 jobs in construction, maintenance and data center operations. With each data center creating hundreds of jobs for local contractors, suppliers, on-site and maintenance workers, they also generate full-time job opportunities across colocation facilities and hyperscale projects. Additionally, Indiana is moving towards advanced technological methodologies and has been fast spaced in data center technology development by incorporating artificial intelligence, machine learning, and edge computing methods within their work spaces to improve overall efficiency and performance. Latency reduction efforts, like reducing data file size for smoother data transmission, have increased with the advancement of technology within data centers. For example, Digital Crossroads Data Center in Hammond has incorporated advanced cooling techniques that reduce water consumption and energy usage. Moreover, data center projects in Indiana are incorporating environmental sustainability methods to increase energy and productive efficiency, making them low-traffic sites with reduced infrastructural strain, which preserves the nature of rural land. Many companies have included initiatives such as advanced cooling techniques such as liquid cooling of HVAC. Major players such as Amazon Web Services and QTS have opted to take advantage of renewable energy and have installed large solar farms to completely power their data centers. For example, Meta’s Jeffersonville data center has proposed achieving net-zero emissions across its entire value chain by 2030 and is incorporating energy efficient cooling systems as well as switching their power load to renewable, solar energy in efforts to reduce overall environmental footprint. Indiana experiences a range of temperature fluctuations that could pose challenges to data centers. With high humidity levels, flooding risk, and threat of severe weather events such as thunderstorms, tornadoes and heavy snowfall, data centers have shifted towards modern construction methods to withstand natural disasters. The Amazon Web Services data center in New Carlisle is designed with elevated structures and flood defense construction mechanisms to mitigate the risk of flooding. Google’s Fort-Wayne Facility has efficient robust power backup systems that can maintain operations during power outages. Similarly, many data centers have taken on natural disaster and risk mitigation, creating location facilities that are built to withstand damage and have energy efficient ventilation systems, creating a reliable stream of income for landowners that lease their land for data centers regardless of the risk of natural disasters . Considerations for Property Owners in Indiana By leasing or selling property in Indiana for the development of data centers, landowners are able to contribute to the infrastructure that keeps the digital world and the economy running smoothly. Indiana property owners of all types, ranging from private property owners to corporations and governments , are not only a critical component in the digital network that supports the technology provided by data centers we need to operate every day, but also a key component to regional and state economic development. There are various factors that developers look for as they determine if a property qualifies for a data center . Zoning and regulatory laws will impact the amount of land eligible for development. The property’s proximity to power and fiber optic sources will also affect a property’s suitability for data center development. With Indiana being at a locational advantage through serving as a trade hub and port for the country, landowners and data center developers can mutually benefit from the planning and development of data center projects. With great sales tax exemptions for data centers, property tax abatements, and investment tax credits, developers are looking for long term leases that allow overall cost reductions and around the year operation. Long-term tax benefits allow data center investors to enter into long-term lease agreements with landowners to construct data centers on their property, which provides a secure and consistent source of income for property owners. Institutional and government property owners in Indiana also have the opportunity to lease their properties for data center development to generate revenue and contribute to economic growth. To learn which of your agency’s specific sites are most suitable for data center development, book a free consultation call with the government & corporate team at LandGate below: How to Lease Property for Data Centers in Indiana Understanding the process of leasing land for data centers in Indiana is essential for landowners, as it involves not only negotiation of terms but also compliance with local regulations and assessment of site suitability. Step 1: Land Qualification The first step for landowners in Indiana curious about leasing or selling their land for data center development is to understand if their land is suitable for a data center. Factors such as location, buildable acreage, zoning, topography, proximity to energy and utilities, and environmental considerations like flood zones and wetlands all impact a property’s viability for a data center. If you're curious if your land in Indiana your property's suitability for a potential data center by finding your parcel on LandGate’s map: Step 2: Market Your Property for Lease or for Sale for a Data Center Listing your property in Indiana for lease or for sale for the construction of a data center on LandGate’s marketplace is the best way to market and get the most value from your property. By listing on LandGate’s marketplace, you are presenting your property to various competitive companies actively searching for properties in Indiana to lease or buy for data center development. If you’re unsure if your property could be suitable for a data center, our team recommends creating a listing anyway- listing is completely free with no obligations to accept any offers, so you never know what kind of offers you may receive. Step 3: Receive Lease Offers Once your listing is live on LandGate’s marketplace , any interested developers will reach out to you directly with offers using the contact information provided when you registered for your LandGate account. Step 4: Lease Negotiation Negotiating the ground lease offer is the first step you will take after receiving an offer. LandGate is unable to provide legal advice or assist with conducting due diligence on any offers that you receive, but we can refer you to a licensed expert that can help. These professionals, such as commercial real estate brokers, attorneys, and engineers, can assist you in ensuring that you are securing a good deal. Always remember that lease agreements are completely negotiable. You can negotiate things like the value of the lease payments, the length of the lease, and the percentage of the escalator. Typically, ground leases for data centers range from 75-99 years, and generally provide escalating base rents, percentage rent arrangements, and outline responsibilities for maintenance and utilities. Step 5: Lease Option Agreement After negotiations, developers need to retrieve data center option agreements. Typically, this follows a check by the developer, ensuring that the land meets their needs and in the case of tax exemptions of subsidiaries, meets all necessary government requirements. It is essential for both parties involved in the agreement to assess possible engineering and land factors, to ensure the feasibility of the project and ensure that it receives all necessary approvals to begin. Oftentimes, data center proposals will be pitched to the county or state government. Why can’t I get a lease agreement directly? The process of developing any large data center begins with the developer optioning the land, also known as ‘site control,’ typically through a Ground Lease. Once thorough land evaluation has taken place, utility application is necessary. This means that the data center project will need further due diligence to ensure that sites have required proximity to a power source (renewable or a power substation), access to fiber optic cables, and that necessary easements are in place. Where can a landowner get more information about the lease? You can find out if your property could be suitable for a data center by getting a free property report from LandGate. LandGate provides data center value index scores for every property in the U.S., which will evaluate your property on a scale of 0-100, letting you know how suitable your property could be for a data center. Get a free property report by finding your parcel on LandGate’s map: Step 6: Lease Agreement Once site control is confirmed, the project is then moved to a ‘planned’ phase. The option agreement now becomes an official lease agreement, and the landowner begins to receive lease payments from the data center developer. The specific amount of these lease payments depends on what is negotiated in the lease. Step 7: Data Center Construction Lease payments for data centers are phased as projects progress. Typically, the lease payments start as a small amount during the option period and increase during the construction phase of the data center, with payments reaching their peak upon completion of the data center. Depending on the size of the project, constructing a data center can take anywhere from 18 to 40 months before the data center reaches full operation. Smaller projects will take a substantially less amount of time to complete. Step 8: Active Data Center After construction is completed and the data center is fully operational, the lease enters the ‘production’ phase, which indicates that the land is now responsible for data storage and transmission through the data center. This period will last throughout the remainder of the lease.
- How Do Wind Leases Work?
Wind power is a rapidly growing source of renewable energy development in the United States. According to the US Department of Energy , the US has installed over 144,000 megawatts of wind capacity, making it the largest renewable energy source in the country. Wind turbines, the machines that produce electricity from wind energy, are crucial for harnessing this energy. This guide will explain how wind leases work and what landowners can expect when leasing land for a wind farm . Key Takeaways Wind leases are long-term agreements where landowners allow wind energy companies to install and operate turbines on their land in exchange for lease payments. Landowners can receive fixed payments per turbine or per acre, or royalty payments based on energy generated. Typical annual payments range from $5,000 to $8,000 per turbine. Wind farms require large parcels, often up to 80 acres per turbine, and proximity to electrical infrastructure is crucial. Landowners can often graze livestock or cultivate crops but may face restrictions on certain activities. How Do Wind Leases Work? Wind leases are long-term legal agreements between a landowner and a wind energy company. The landowner grants the developer the right to install and operate wind turbines on their property. Then, the wind developer typically sells the electricity generated by the turbines back to the utility company. The landowner receives lease payments in exchange for allowing the use of their land. How do Landowners Get Paid for Wind Leases? The wind company compensates landowners for allowing them to place wind turbines on their land. The amount of these payments varies depending on the wind company and the lease agreement itself. Lease payments for wind projects can adopt various structures. Some leases pay fixed amounts per turbine or acre, while others include royalty payments. Royalty payments are a percentage of the money made from the energy generated from the turbines. Many wind leases use a mix of these methods. If the landowner gets paid per turbine, the payment amount is usually based on the amount of energy that the turbines generate. Annual payments of $5,000-8,000 per turbine are typical, but this fluctuates depending on the specific lease agreement. How Many Acres of Land Do You Need for a Wind Farm? While there is no definitive answer to this question, wind farms generally require very large parcels. Wind turbines themselves require a lot of space, and wind developers place them far apart to account for turbulence. You typically need at least 80 acres of land for a wind farm- just one wind turbine can require up to 80 acres of land. As wind developers evaluate parcels of interest, acreage is not the only consideration. Many different factors determine if land qualifies for a wind farm . Wind developers also consider proximity to electrical infrastructure, such as substations and transmission lines. The closer a property is to electrical infrastructure, the more attractive it is for a wind farm. Other considerations include exclusion zones, local wind power incentives, wind speeds , and more. Using LandGate's free property report, landowners can receive a free wind lease estimate for their parcel. This calculation accounts for the above factors and more to provide you with an accurate estimate for your land's wind leasing value. What is the Process for Leasing Land for Wind Turbines? The process of leasing land for wind turbines includes a development phase, a construction phase, a production phase, and a decommissioning phase. Development Phase: Also referred to as the option period, this is the 2-6 year term that gives the wind developer the exclusive right to construct turbines on your land. During this term, the wind developer obtains the necessary permits, acquires financing, conducts feasibility studies, and more to ensure that they can begin construction. The wind developer pays the landowner a modest amount ($5-40 per acre) during this time. Construction Phase: During this period, the wind developer constructs the wind turbines and the supporting infrastructure. This phase could last anywhere from 2 months to 1 year depending on how many turbines the developer plans on building. Production Phase: This is the phase in which the wind farm is fully functioning and generating electricity. This phase can last for 20 years or longer, depending on the lease. The typical wind farm lease length is 30 years. Many wind leases include options for the wind developer to extend the lease by 5 or 10-year increments. Decommissioning Phase: Unless the wind company moves forward with any options to extend the lease, the wind turbines and supporting structures are removed from the property, and it is restored to its original condition. The developer is responsible for this phase. During the production phase, there may be certain implications on what a landowner can and can't do with their land during the wind lease . While the wind energy facility is operational and producing energy, landowners may be able to simultaneously graze livestock and cultivate crops on their land. Landowners might also face restrictions preventing specific activities on their land, such as building obstructive structures. In some cases, the production phase does not last the full term of the lease. For example, the wind developer may go bankrupt. In these cases, the wind farm may be sold to another developer, who would take over the lease and continue operating the project as planned. This means that there is a potential for gaps in the lease payments, but the developer who purchases the wind farm would be responsible for any back payments. For that reason, many landowners choose to sell their wind lease payments for a lump sum upfront. How to Lease Land for a Wind Farm Landowners can list their land for lease for wind farms for free on LandGate's online marketplace. Wind developers use our data to find parcels of interest and plan/ manage their projects. The first step is to find your land on our map and receive your free property report. Publish your free listing today !
- Benefits of Airport Solar Farms
As the world shifts towards sustainable and renewable energy sources, solar power has gained significant attention as a viable alternative to traditional fossil fuels. With the increasing demand for electricity, many countries are looking for ways to enhance their renewable energy capacity. One of the most promising solutions is utilizing airport land for renewable energy projects . In particular, airport solar farms have become popular due to their numerous benefits. In this resource, we'll explore some of the advantages of using airport land for solar energy production and offer guidance for how airports can transform their underutilized lands into solar farms. LandApp makes it easy for airport property owners and government agencies to identify their land's potential for solar energy and battery storage development. By listing airport land for lease on LandApp's platform for free, airports can display their underutilized properties directly to a vast network of solar energy developers actively seeking suitable properties for new projects. Join current LandApp users like the Tucson Airport Authority and the Denver International Airport and uncover the potential of your properties for solar energy by booking a call with LandApp's team today: Why is Airport Land Good for Solar? Airports occupy vast stretches of underutilized land, offering an excellent opportunity for solar energy projects. These areas are often unsuitable for other purposes due to noise from low-flying aircraft, but their unique characteristics make them ideal for solar installations. Typically flat, open, and located in remote areas with minimal shading from buildings or trees, airport properties provide unobstructed access to sunlight—perfect conditions for solar panels. Moreover, the airport itself serves as a large, nearby energy consumer, making such projects particularly appealing to solar companies. In 2010, the Federal Aviation Administration released a study that suggested that airports are an ideal location for solar panels, which has resulted in an increase in airport solar farms over the last decade. Across the country, there are tens of thousands of airports and airfields, many strategically located as flat expanses near cities, towns, or population centers—further enhancing their suitability for solar development. In the United States alone, the Federal Aviation Administration (FAA) identifies 14,400 private-use airports and 5,000 public-use airports. This immense network underscores the significant potential of airports to drive clean energy growth by hosting solar projects on their land. Benefits of Airport Solar Farms Airport solar farms present a unique opportunity to harness renewable energy while making efficient use of underutilized land. By installing solar panels on vast, open spaces such as rooftops, parking lots, and non-operational areas, airports can significantly reduce greenhouse gas emissions, lower energy costs, and contribute to a more sustainable future. These projects serve as a model for innovation, demonstrating how essential infrastructure can play a pivotal role in combating climate change and producing additional revenue. Revives Underutilized Land: Airports often encompass vast areas of unused land, offering a unique opportunity to generate renewable energy through solar farms. By installing solar panels on these otherwise unproductive spaces, airports can efficiently harness solar energy while maximizing land use. As airports continue to expand and acquire more land, solar installations present a sustainable and practical solution. Compared to traditional agricultural use, solar farms require significantly less maintenance. Instead of managing sprawling grasslands or cultivating crops in areas that may attract wildlife, solar panels provide an eco-friendly alternative that conserves valuable farmland and reduces environmental impact. Environmental Benefits: The use of airport land for solar energy production has numerous environmental benefits . First, it reduces the need for land development in other areas, preserving natural habitats and ecosystems. This is especially important in densely populated countries where available land for industrial use is scarce. Moreover, solar energy production does not emit any harmful greenhouse gases, making it a clean source of electricity. Denver International Airport (DIA) is a great example of this, as the airport was one of the first to install solar panels on airport property. According to DIA's website , the 42,614 solar photovoltaic arrays with a capacity of 10 megawatts could offset almost 12,000 metric tons of greenhouse gas emissions each year. Solar panels at Denver International Airport (DIA) Economic Benefits of Airport Solar Farms : Leasing airport land for solar projects offers not only environmental advantages but also substantial economic benefits. Airports, often situated near cities or towns, are well-positioned to take advantage of existing infrastructure like roads and power grids. This proximity significantly lowers the costs associated with building new infrastructure for solar developments. In addition to these savings, airports can generate a steady stream of revenue by leasing their land for solar farms. This added income can help offset operational expenses and, in turn, may even contribute to lower air travel costs for consumers. Utilize Existing Resources: One significant benefit of using airport land for solar energy is the efficient use of existing resources without disrupting other industries or communities. Airports are already established on these lands, eliminating the risk of displacing people or businesses to install solar panels. Additionally, this approach avoids potential conflicts with other land uses, such as agriculture or residential development, ensuring a harmonious and practical solution for clean energy adoption. Why Should Airports Lease Their Properties for Solar Energy? Leasing airport properties for solar energy presents a unique opportunity to contribute to the global shift toward renewable power while maximizing the utility of unused or underutilized land. Airports have vast areas of open space that are ideal for solar installations, enabling them to generate clean energy, reduce carbon footprints, and create additional revenue streams. This innovative approach aligns with sustainability goals without interfering with core airport operations or surrounding communities. 1) Generates Revenue When airports lease their land for renewable energy projects , they have the opportunity to generate revenue through lease payments . Solar leases generally pay between $700-2,000 per acre per year, presenting airports with a significant opportunity to generate additional income from their property. 2) Saves Electricity Costs Utilizing airport land for solar farms can also help airports save on their electricity costs. By using solar energy, airports are able to offset a portion of their electricity usage and potentially reduce their energy bills by a significant amount. DIA serves as an excellent example of how airports can leverage their property to achieve significant cost savings in electricity. 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. All contracts undergo the city council's approval process, and the aviation department collaborates closely with the city government's sustainability department to ensure alignment and success. 3) Promotes Sustainability With growing concerns about the environment and climate change, airports that utilize their land for solar projects demonstrate a commitment to sustainability. This can improve the airport's public image and attract positive attention from customers and the community. The Rise of Airport Solar Farms Overall, utilizing airport land for solar projects provides benefits to both the public and airports. It promotes sustainability, generates revenue, reduces electricity costs, and utilizes existing resources without disrupting other industries or communities. However, only around 20% of airports across the United States have adopted solar power over the last decade. As more airports recognize these benefits and make the transition to solar energy, it will have a positive impact on the environment and the economy, making it a win-win for everyone involved. Airport property owners can list their land for lease for solar energy for free on LandGate's one-of-a-kind marketplace for exposure to a wide network of solar energy developers and investors. LandGate can also assist with site analysis, site prioritization, and procurement materials, providing a unique solution to help airports leverage their property for renewable energy. To learn more, book a free consultation call with our team:
- Solar Energy on Airport Land
In the face of mounting environmental challenges and the global push towards sustainable practices, governments worldwide are under increasing pressure to reduce their carbon footprint and promote clean energy solutions. Renewable energy has emerged as a critical component of this effort, offering numerous benefits, including reduced greenhouse gas emissions, energy security, and economic growth. To meet these demands, airport and government landowners have started exploring innovative ways to harness their underutilized assets, such as non-aviation airport-owned land, to support renewable energy projects. What Makes Airports Attractive for Solar Energy? Airports are often sprawling complexes that encompass extensive areas of land. Beyond the runways and terminals, these facilities can include vast expanses of unused or underutilized property. Leasing airport land for renewable energy projects presents a unique opportunity for government landowners to address several pressing challenges simultaneously: Maximizing Land Utility: Airport land often remains idle, serving no purpose other than as buffer zones or green spaces. Leasing it for renewable energy projects enables landowners to extract value from these assets, turning unproductive land into a source of income. Advancing Sustainable Goals: Airport property owners and stakeholders can demonstrate their commitment to sustainability by facilitating the development of renewable energy infrastructure on airport property. This contributes to regional and national renewable energy targets, reducing carbon emissions and mitigating climate change impacts. Economic Diversification: Revenue generated from leasing airport land for renewable energy can be reinvested into infrastructure development, community projects, or public services, thereby fostering economic growth and diversification in the region. Energy Resilience: Airports require consistent, reliable power to operate essential systems. Integrating renewable energy sources, such as solar panels, can enhance energy security, reduce dependence on traditional grid sources, and reduce energy consumption costs. Airports Implementing Solar Panels The Federal Aviation Administration , FAA, updated their policy on solar projects on airport land in 2021 intended to make the approval process more efficient to increase the number of airports developing solar facilities on non-aviation land. As a result of these new guidelines, airports across the country are increasingly choosing to lease their land or rooftops for solar power. Examples of airports implementing solar panels are Denver International Airport (DIA), the Dulles International Airport, and the Tucson Airport Authority. Dulles International Airport Solar The Dulles International Airport announced the construction of a solar and energy storage project that will hold a 100 MW solar farm and a 50 MW battery storage facility. The amount of energy that will be generated will be the equivalent of 37,000 homes when at peak output. The project features an innovative lease arrangement aimed at enhancing the electric vehicle (EV) infrastructure at Dulles. Rather than making yearly lease payments to MWAA for the 100 MW site, Dominion Energy plans to construct two 1 MW solar carports. These carports will generate power for Dulles facilities, in addition to supplying 18 electric transit buses, 50 electric fleet vehicles, and electric vehicle charging stations to support Dulles operations. Denver International Airport Solar Denver International Airport (DIA) has also implemented solar panels across their properties. As of November 2024, DIA has 4 operating solar arrays with a combined capacity of 10 MW. The airport is actively trying to implement more solar panels on their underutilized land. This 1,046 acre property is currently listed for lease for solar energy on LandApp's marketplace: Tucson Airport Authority Solar Another example of an airport implementing solar energy is the Tucson Airport Authority . Using LandApp's free services for government agencies, Tucson was able to lease their 1,036 acre property for solar energy, which will generate 100 MW of clean energy and an additional 50 MW of additional storage capacity. Solar Energy on Airport Land There are different types of land resources that can be taken advantage of when considering potential renewable energy development on land. Solar and battery storage are preferred resources to develop on airport land as they do not create any potential impact on aviation operations. Leasing airport land for development projects is a strategic move for government landowners. It aligns with the global push for sustainability, promotes economic growth, and maximizes the utility of underused land assets. While challenges exist, the benefits of this approach far outweigh the drawbacks. By embracing renewable energy initiatives on airport property, airport property owners and stakeholders can lead the way in the transition to a greener, more sustainable future. LandApp makes it easy for airport landowners to identify their land's potential for solar and battery storage development. Join current LandApp users like the Tucson Airport Authority and the Denver International Airport and uncover the potential of your properties for solar energy by booking a call with LandApp's team today:
- Leasing Property for Data Centers in Virginia
Leasing property for data centers in Virginia presents a unique opportunity for landowners to tap into the burgeoning tech industry while maximizing their land’s potential. With Virginia being home to one of the largest concentrations of data centers in the country, property owners have a prime chance to leverage this demand. As a landowner, you can play a crucial role in supporting the digital infrastructure that drives modern business and innovation. In this resource, we will explore the advantages of leasing your property for data center use and how LandGate's marketplace can seamlessly connect you with interested lessees, enabling you to monetize your property effortlessly. What should property owners know about leasing property for data centers in Virginia? Over the last decade, the data center market has been growing rapidly, undergoing a remarkable transformation. Data centers serve to be an essential part in maintaining internet growth and online service demand. They serve as specialized locations of vast computer networks and storage systems that work around the clock to process, store, and manage data. The North American data center market is projected to grow to $143.52 billion by 2028, with rapid demand expansion and a CAGR of 17.1%. Virginia is known to be the ‘Data Center Alley’ and is the leading state across the United States for data center growth and technology development. Virginia is home to over 400 data centers and represents 35% of all known hyperscale data centers worldwide. Between 2015 and 2024, Virginia’s data center market has shown over 500% of growth. As of Q3 2024, Northern Virginia holds over 1600 MW of power and is expecting a double in demand over the next decade, aided with a 12% annual increase in peak electric load over the next 15 years driven exclusively by data centers. With these rising numbers, landowners in Virginia have experienced an increase in demand for their land to be used for data centers. Many developers are looking for land to expand existing sites and build new projects across the state, contributing to the large market for data centers within Virginia. These opportunities provide benefits not only for the general economy and the job market, but also for landowners across the state. LandGate is a marketplace that connects property owners of all types who want to sell or lease their land directly to developers seeking land for data centers, while also providing useful property data to landowners to help them make informed decisions through this process. Equipped with information about the value of their land, property features, lease estimates, and much more, LandGate provides landowners in Virginia with extensive property data at no cost to help navigate the process of leasing or selling their land for a data center. To learn more about your property's potential suitability for a data center, get a free Property Report by finding your property on LandGate's map and check out the data center value index score: Why is it attractive to lease or sell your land for data centers in Virginia? Virginia is rightfully the leading data center market within the United States, offering a multitude of benefits to landowners and project developers alike. With its favorable business environment, reliable energy resources, large scale of return and great locational advantage, Virginia remains at the forefront of the market. Major players such as Amazon Web Services (AWS), Microsoft, and Google have substantial operations in the state and have announced plans to expand or build new projects in the area. These large investors in the state have been quick to integrate artificial intelligence and environmental sustainability measures into their projects. While the buildable acreage for data centers in Virginia can vary according to project specifications, the typical size range for small facilities can start off with just a few acres while large-scale projects cover an average of 100-150 acres. Larger data centers in Virginia can exceed 200 to 300 acres. A medium-sized data center will typically range between 50-90 acres of land, and is the most popular size of property that developers demand in Virginia. Along with the financial gain from either leasing or selling their property for data centers, landowners in Virginia should be aware of the benefits that developing a data center has on the regional and state economy. The data center industry has been responsible for large boosts in the state economy, generating $1.2 billion in tax revenue, including $1 billion for local municipalities and $174 million for the overall state. Such large returns have ripple effects into other sectors of the economy. Virginia’s data center market has brought in a multitude of job opportunities across the state. With over 26000 operational and construction jobs created in North Virginia alone, the rest of the state is not far behind in providing construction, maintenance, and full time employment opportunities. With each data center creating hundreds of jobs for local contractors, suppliers, on-site and maintenance workers, they also generate full-time job opportunities across colocation facilities and hyperscale projects. Additionally, Virginia is leading advanced technological methodologies and is far ahead of other data center markets in incorporating artificial intelligence, machine learning, and edge computing methods within their work spaces to improve overall efficiency and performance. Latency reduction efforts, like reducing data file size for smoother data transmission, have increased with the advancement of technology within data centers, allowing Virginia to remain at the forefront of technological innovation. With Dominion energy connecting over 15 data centers in 2023 and reaching a total of 933 MW, the implementation of AI in latency reduction methods has been crucial to their expansion. Moreover, data center projects in Virginia are incorporating environmental sustainability methods to increase energy and productive efficiency, making them low-traffic sites with reduced infrastructural strain. Many companies have included initiatives such as advanced cooling techniques such as liquid cooling of HVAC. Some data center companies have gone as far as to reduce 40% of energy consumption. Additionally, some companies, such as Google, had adopted 100% renewable energy as their main energy sources within data centers. Considerations for Property Owners By leasing or selling property in Virginia for the development of data centers, landowners are able to contribute to the infrastructure that keeps the digital world and the economy running smoothly. Property owners of all types, ranging from private property owners to corporations and governments , are not only a critical component in the digital network that supports the technology provided by data centers we need to operate every day, but also a key component to regional and state economic development. When selling or leasing land in Virginia for data centers, landowners should keep the typical size requirements in mind along with several other important considerations. Zoning and regulatory laws will impact the amount of land eligible for development. The property’s proximity to power and fiber optic sources will also affect a property’s suitability for data center development. Virginia’s large market allows it to provide generous exemptions to investors and landowners alike. The Virginia Economic Development Partnership offers a 6% retail tax and exemption on IT equipment and enabling software, increasing demand for projects in the area. The upcoming Mega Data Center Incentive Program proposes extending these exemptions for up to 15 years on qualifying equipment. This program currently runs through 2035 and also includes up to $140 million for site and infrastructure improvements, workforce development, and other project-related costs. In addition, Henrico County will allocate $60 million from data center revenues to its first Affordable Housing Trust Fund ( Henrico County ). Long-term tax benefits also allow data center investors to enter into long-term lease agreements with landowners to construct data centers on their property, which provides a secure and consistent source of income for landowners. Institutional and government property owners in Virginia also have the opportunity to lease their properties for data center development to generate revenue and contribute to economic growth. To learn which of your agency’s specific sites are most suitable for data center development, book a free consultation call with the government & corporate team at LandGate below: What is the process of leasing land in Virginia for data centers? Data center land leases are long term commitments, so property owners interested in monetizing their property through this method should be aware of all steps involved so that they can make well-informed decisions. Step 1: Land Qualification The first step for landowners in Virginia curious about leasing or selling their land for data center development is to understand if their land is suitable for a data center. Factors such as location, buildable acreage, zoning, topography , proximity to energy and utilities, and environmental considerations like flood zones and wetlands all impact a property’s viability for a data center. Curious if your land in Virginia could qualify for a data center lease? LandGate provides data center value index scores for every property in the U.S. within our free property reports. On a scale of 0-100, the data center value index score will let you know how suitable your property could be for data center development. Get a free property report by finding your parcel on LandGate’s map: Step 2: Market Your Property for Lease or for Sale for a Data Center Listing your property in Virginia for lease or for sale for the construction of a data center on LandGate’s marketplace is the best way to market and get the most value from your property. By listing on LandGate’s marketplace, you are presenting your property to various competitive companies actively searching for properties in Virginia to lease or buy for data center development. If you’re unsure if your property could be suitable for a data center, our team recommends creating a listing anyway- listing is completely free with no obligations to accept any offers, so you never know what kind of offers you may receive. Step 3: Receive Lease Offers Once your listing is live on LandGate’s marketplace , any interested developers will reach out to you directly with offers using the contact information provided when you registered for your LandGate account. Step 4: Lease Negotiation Negotiating the ground lease offer is the first step you will take after receiving an offer. LandGate is unable to provide legal advice or assist with conducting due diligence on any offers that you receive, but we can refer you to a licensed expert that can help. These professionals, such as commercial real estate brokers, attorneys, and engineers, can assist you in ensuring that you are securing a good deal. Always remember that lease agreements are completely negotiable. You can negotiate things like the value of the lease payments, the length of the lease, and the percentage of the escalator. Typically, ground leases for data centers range from 75-99 years, and generally provide escalating base rents, percentage rent arrangements, and outline responsibilities for maintenance and utilities. Step 5: Lease Option Agreement After negotiations, developers need to retrieve data center option agreements. Typically, this follows a check by the developer, ensuring that the land meets their needs and in the case of tax exemptions of subsidiaries, meets all necessary government requirements. It is essential for both parties involved in the agreement to assess possible engineering and land factors, to ensure the feasibility of the project and ensure that it receives all necessary approvals to begin. Oftentimes, data center proposals will be pitched to the county or state government. Why can’t I get a lease agreement directly? The process of developing any large data center begins with the developer optioning the land, also known as ‘site control,’ typically through a Ground Lease. Once thorough land evaluation has taken place, utility application is necessary. This means that the data center project will need further due diligence to ensure that sites have required proximity to a power source (renewable or a power substation), access to fiber optic cables, and that necessary easements are in place. Where can a landowner get more information about the lease? You can find out if your property could be suitable for a data center by getting a free property report from LandGate. LandGate provides data center value index scores for every property in the U.S., which will evaluate your property on a scale of 0-100, letting you know how suitable your property could be for a data center. Get a free property report by finding your parcel on LandGate’s map: Step 6: Lease Agreement Once site control is confirmed, the project is then moved to a ‘planned’ phase. The option agreement now becomes an official lease agreement, and the landowner begins to receive lease payments from the data center developer. The specific amount of these lease payments depends on what is negotiated in the lease. Step 7: Data Center Construction Lease payments for data centers are phased as projects progress. Typically, the lease payments start as a small amount during the option period and increase during the construction phase of the data center, with payments reaching their peak upon completion of the data center. Depending on the size of the project, constructing a data center can take anywhere from 18 to 40 months before the data center reaches full operation. Smaller projects will take a substantially less amount of time to complete. Step 8: Active Data Center After construction is completed and the data center is fully operational, the lease enters the ‘production’ phase, which indicates that the land is now responsible for data storage and transmission through the data center. This period will last throughout the remainder of the lease.
- The American Landowner Podcast + LandGate Recap
In the latest episode of The American Landowner podcast , host Robert Dudley sits down with Craig Kaiser, President and Co-Founder of LandGate, to explore the intriguing world of solar leasing opportunities for landowners. As the demand for renewable energy continues to rise, this conversation sheds light on the benefits, challenges, and key considerations for landowners contemplating leasing their land for solar farms. The discussion not only highlights the potential financial advantages but also delves into the implications of land use, environmental impact, and long-term sustainability. Through informed decision-making, landowners can fully leverage the potential of solar leasing to enhance both their economic and environmental contributions. Join us as we recap this informative episode and uncover valuable insights that could help landowners make informed decisions about their properties in the evolving green energy landscape. Introduction to Solar Leasing Solar leases are long-term agreements between a landowner and a solar energy company. In these contracts, the property owner permits the solar developer to install and operate solar panels on their land. Typically, the developer sells the electricity generated back to the utility company. In return for granting land use, the landowner receives lease payments from the solar developer. Benefits of Solar Leasing The three primary benefits of solar leasing for landowners are revenue generation, maintaining land ownership, and contributing to clean energy production. 1) Revenue Generation The biggest benefit of leasing land for solar farms is revenue generation. Landowners can generate a long-term, steady income stream from solar lease payments . Solar leases are typically paid on a per acre per year basis, without royalties. These payments typically range from $700-2,000 per acre per year. Solar lease payments vary across the country and are determined by many different factors. The best way to determine what solar developers are willing to pay to lease your property is to put it onto the market and get as many eyes on your property as possible. By listing your property for lease on LandGate's competitive marketplace, you can expose your property to a wide network of high-intent solar developers actively searching for suitable properties for solar farms: 2) Maintain Land Ownership & Build Generational Wealth When you lease your land for a solar farm , you can retain ownership of your property while earning income from it through lease payments paid by the solar developer. Additionally, land values are constantly appreciating. By leasing your land for solar energy, you can preserve your asset value while also generating additional income to pass on to future generations. 3) Produce Clean Energy Leasing land for solar energy production contributes significantly to reducing carbon emissions and promoting environmental sustainability. This opportunity allows landowners to be part of the solution in addressing climate change and creating a healthier environment for future generations. Solar Leasing Considerations for Landowners While there are many benefits to leasing land for solar farms, it's important for landowners to consider whether or not this option is right for them due to the long-term nature of solar lease agreements. These include: Site suitability: Not all land is suitable for solar development due to factors such as topography, soil quality, and proximity to electrical infrastructure. Property size is also an important consideration for determining whether or not your land qualifies for a solar farm , as most utility-scale solar developers typically look for properties above 40 acres. However, smaller properties, even those as small as 5 acres, can still be used for community solar farms . During the episode, Robert and Craig discuss site suitability for different types of solar farms in depth. Agricultural impact: Leasing land for solar development may impact current or future agricultural practices on the property. However, agrovoltaics is a potential solution to this challenge. Agrovoltaics is the practice of combining agricultural practices, such as grazing, with solar panel installations. Long-term land use planning: It's important to consider the long-term implications of leasing your land for solar energy production and how it may affect future plans for your property. Solar leases are long-term agreements, generally ranging from 20-40 years in length. How to Connect With Solar Developers Looking for Land LandGate aims to empower landowners by providing data and insights on the energy and resource potential of their properties, including for solar, wind, battery storage, and more. Landowners can get a free property report to learn about their property's potential to be leased for a solar farm and list their properties for lease for free on LandGate's marketplace to connect with a large network of solar developers actively looking for properties to lease across the country.
- FAQ: Investing in Farmland
According to the U.S. Department of Agriculture ( USDA ), there are approximately 911 million acres of farmland in America. Of this, farmers and ranchers own about 61% of the land they use, while the rest is rented from third-party landlords. Investment groups, including retired farmers, hold the remaining 31% of America's farmland. Non-operating individuals or partnerships own 21%, and corporations, trusts, or other owners hold 10%. Despite being one of the oldest investment classes, land as an investment is often overlooked and considered boring. However, in a world filled with unpredictability, sometimes the allure of the "boring" becomes quite appealing. In this resource, we will explore why investors and individuals are increasingly choosing to invest in farmland. What are the Benefits of Investing in Farmland? Farmland investments come with numerous advantages that make them attractive to agricultural investors and landowners alike. Farmland is a stable investment, acts as an inflation hedge, and can generate revenue. 1. Farmland is a Stable Investment One of the most significant benefits of investing in farmland is its long-term stability. Unlike stocks and bonds, which can be volatile, farmland tends to appreciate steadily over time. This stability provides a reliable source of returns, making it an excellent addition to any investment portfolio. Farmland is known for its relative stability compared to other investment asset classes. There have been instances where the volatility of the S&P 500 has been more than double that of farmland. Surprisingly, farmland has even exhibited lower volatility than commercial real estate, bonds, and gold. Farmland investments provide diversification for portfolios. Agriculture as an industry is not closely correlated with stock prices, meaning that it can help balance a portfolio and reduce overall risk. 2. Farmland Investments are an Inflation Hedge Farmland also acts as an effective hedge against inflation. As the demand for food and other agricultural products increases, the value of farmland rises correspondingly. This natural correlation helps protect your investment from the eroding effects of inflation. Investing in farmland serves as a valuable safeguard against inflation. This is due to several reasons. As inflation rises, so do the prices of commodities such as wheat and corn. Consequently, the increase in crop prices can lead to higher returns on farmland investments. Moreover, the low correlation between farmland and the stock market, coupled with its tendency to appreciate, further solidifies its position as a natural hedge against inflation. 3. Farmland can Generate Revenue Investing in farmland offers the potential for passive income through lease agreements with farmers. By leasing out your land, you can earn a steady stream of income without having to manage the farming operations yourself. This makes it an attractive option for those seeking a hands-off investment. Farmland owners can also earn income from crop yields or cash rental payments when they lease their land to other farmers. According to the National Agricultural Statistics Service (NASS), the average rent rate for cropland is also steadily rising . How Can I Invest in Farmland? When it comes to investing in real estate or farmland, there are direct and indirect options available. Buying farmland directly involves purchasing and owning the land directly, allowing you to have full control and potentially generate income through farming or leasing. On the other hand, indirect investment allows you to invest in farmland through various financial instruments such as real estate investment trusts (REITs) or agricultural funds, providing an opportunity to diversify your portfolio and benefit from the potential appreciation of farmland values. There are several ways to invest in farmland, each with its own set of advantages and considerations. 1. Direct Ownership Purchasing farmland directly is the most straightforward way to invest. This approach gives you full control over the property and allows you to benefit directly from any appreciation in land value. However, it also comes with the responsibility of managing the land and dealing with any associated challenges. 2. Farmland REITs Real Estate Investment Trusts (REITs) specializing in farmland offer an alternative way to invest without the need for direct ownership. Farmland REITs pool funds from multiple investors to purchase and manage agricultural properties, providing a more hands-off investment option. This approach allows you to diversify your investment across multiple properties and benefit from professional management. 3. Farmland Crowdfunding Crowdfunding platforms enable individuals to invest in farmland with lower capital requirements. By pooling funds with other investors, you can gain exposure to farmland investments without the need for large upfront investments. This approach offers an accessible entry point for those new to farmland investing. What Kind of Farmland Should I Acquire? Choosing the right type of farmland is crucial for maximizing returns on your investment. 1. Row Crop Farmland Row crop farmland is used for growing crops like corn, soybeans, wheat, and cotton. This type of farmland is typically found in regions with fertile soil and favorable climate conditions, like the Midwest, which is one of the best regions for agricultural land investment in the U.S. Investing in row-crop farmland can provide stable returns, especially in areas with high agricultural productivity. 2. Permanent Crop Farmland Permanent crop farmland is used for growing crops such as fruit trees, nut trees, and vineyards. These crops require longer-term investments but can offer higher returns due to their specialty nature. Permanent crop farmland is best suited for investors willing to commit to long-term investments. 3. Pastureland Pastureland is used for grazing livestock, such as cattle, sheep, and goats. This type of farmland can provide a steady income stream through livestock sales and leasing agreements. Pastureland is ideal for investors interested in animal husbandry and sustainable farming practices. What Are Environmental Concerns I Should Know About? Understanding environmental concerns is crucial for responsible farmland investment. 1. Soil Health Maintaining soil health is essential for sustainable agriculture. Practices such as crop rotation, cover cropping, and reduced tillage can help preserve soil fertility and prevent erosion. Investing in farmland with healthy soil can ensure long-term productivity and returns. LandApp's free property report shares valuable soil insights for parcels across the United States. You will be able to view the soil quality categorized by soil class type with class 1 being great soil quality for agriculture to class 8 being very poor for agriculture. We also provide prime farmland classification for the property. If you are interested in viewing this data country-wide, with a LandApp Pro subscription you gain access to data layers that show the soil quality for all properties. 2. Water Management Water availability and management are critical factors in farmland investment. Ensure the property has access to reliable water sources and consider implementing efficient irrigation systems to conserve water. Sustainable water management practices can enhance crop yields and protect the environment. 3. Biodiversity Promoting biodiversity on your farmland can improve ecosystem health and resilience. Practices such as planting diverse crop species, maintaining natural habitats, and supporting beneficial insects can enhance agricultural productivity and reduce the need for chemical inputs. What Kinds of Income Can I Make From My Farmland? Farmland can generate various income streams, offering flexibility and potential for growth. Selling crops is the primary source of income for most farmland investments. The type and quantity of crops grown will determine your potential earnings. Diversifying your crop selection can help mitigate risks and maximize returns. Leasing out your farmland to local farmers can provide a steady stream of passive income. Lease agreements can be structured in various ways, including cash rent, crop share, or custom farming arrangements. Choose the leasing model that best aligns with your investment goals. Developing agritourism opportunities on your farmland can create additional income streams. Activities such as farm tours, pick-your-own produce events, and hosting farm stays can attract visitors and generate revenue. Agritourism can also enhance community engagement and promote sustainable farming practices. What Factors Affect Farmland Values? There are various factors affecting farmland values, including cash rents, interest rates, commodity prices, property qualities, and government policies. 1) Cash Rents and Farmland Value Historically, a clear correlation exists between the value of farmland and the cash rents charged. It stands to reason that as the cost of farmland increases, the rent for using the land correspondingly rises, because cash rent is primarily driven by net returns to the land. Similarly, the relatively strong net return to land during the last few years also strengthened working capital, an important source of funds when making down payments on farmland. 2) Interest rates Capitalization rates play a pivotal role in determining the value of farmland. These rates hinge on several factors: the long-term rate on U.S. Treasuries, often referred to as the risk-free interest rate; inflation; and the risk premium that differentiates the long-term interest rate for land from that on U.S. Treasuries. Any fluctuations in these elements can lead to corresponding shifts in farmland's capitalization rate. Notably, farmland values share an inverse relationship with the capitalization rate, meaning that as the capitalization rate climbs, farmland values tend to drop. In recent years, inflation has maintained a strong presence, significantly influencing the capitalization rate. Moreover, farmland is increasingly viewed as a solid hedge against inflation, thereby amplifying its appeal as an investment choice. Despite the pressure inflation places on interest rates, the unique dynamics between farmland values and inflation usually manifest in a positive correlation, underscoring the complex interplay that shapes the valuation of farmland in the face of economic variables. 3) Commodity Prices Commodity prices significantly influence farm income, which in turn impacts farm revenue and real estate values. Although it's accurate that elevated commodity prices can lead to increased earnings for farmers, it's important to note that other variables, such as escalating input costs, can diminish overall net income. Farmland owners should track both input costs and commodity prices when tracking farmland prices to help predict budgets and investment expectations. 4) Property-Specific Qualities Each piece of farmland is different. Factors such as soil type , soil quality, the availability of water, and whether or not the land is tillable are all factors that can affect the price of a specific piece of farmland. The presence of infrastructure and amenities, such as fencing, barns, access to utilities, and irrigation systems can also affect the value of a piece of farmland. Locational aspects such as proximity to markets and transport infrastructure also play a significant role in determining the value of agricultural land. Farmlands closer to urban markets or with easy access to transportation networks tend to have higher values due to reduced costs and ease in distributing produce. 5) Government Policies and Farmland Value Government policies related to agriculture, subsidies, and taxes can have a significant impact on the price of farmland. Additionally, numerous government programs exist to financially support farmers, ranging from regenerative farming initiatives to federal crop insurance. Government policy often serves as a vital capital source for many farmers. During the pandemic, farms experienced a significant increase in income, attributed to enhanced funding for government programs. This influx of cash may encourage farmers to invest more in farmland, potentially driving up its value. Leveraging Data for Smarter Investments Investing in farmland can provide numerous benefits, including the potential for solid returns, diversification for portfolios, a hedge against inflation, and low volatility. However, it is essential to thoroughly research and consider the potential risks associated with farmland investments and choose a suitable investment option based on individual goals and risk tolerance. With proper planning and due diligence, investing in farmland can be a valuable addition to any investment portfolio. So, it is no wonder that this "boring" asset class is now gaining more attention from investors worldwide. If you're interested in purchasing farmland, LandApp can help! View listings for farmland for sale across the country for free today, or leverage our LandApp Pro tool to view listings and analyze the suitability of any U.S. parcel for farming:
- Which States Have the Most Public Land?
Public land dates back to 1781 when New York surrendered its unsettled territory westward to the Mississippi. By 1802, the rest of the colonies had done the same. From 1781 to 1867, the US Government acquired land to the Pacific Ocean. Today, almost 40% of the US landmass is public land, managed by federal and local governments and supported by taxpayers. What is Public Land? Public land refers to government-owned and managed land. It serves various purposes and is overseen by different entities. The National Park Service, Bureau of Land Management, and United States Forest Service are some of the agencies that manage public land. State and federal public land is often available for recreational use, including state parks, national parks, forests, wildlife refuges, monuments, memorials, historic sites, and more. What are the Benefits of Public Land? Public lands confer a multitude of benefits to society, the environment, and the economy. They provide accessible spaces for recreational activities like hiking, fishing, camping, and wildlife spotting, thereby fostering physical health and wellness. Public lands also serve critical environmental functions such as preserving biodiversity, contributing to climate resilience by absorbing carbon dioxide, and safeguarding watersheds that supply drinking water to millions. Public landowners can also lease their land for renewable energy resources, contributing to renewable energy goals and the reduction of greenhouse gases. Finally, they play a significant role in local economies, drawing tourists, businesses, retirees, and outdoor recreation seekers. Top 5 States With the Most Public Land The states with the most public land are Alaska, Nevada, California, Utah, and Arizona. The public land in these states is used for various purposes and includes some of the most well-known national parks in the country. 1. Alaska The federal government is the largest landowner in Alaska , owning approximately 65% of the total area. Alaska is the largest state in the United States in terms of land area and the least densely populated. Alaska boasts a vast expanse of untouched and unaltered natural beauty. From federal lands like Glacier Bay National Park and Denali National Park to state parks such as Chugach and Kachemak Bay, this state is home to breathtaking landscapes. With over half of the nation's parks and the largest national forest in the U.S., Alaska is a haven for outdoor enthusiasts. 2. Nevada 59.7 million acres, over 85%, are government-owned in Nevada . Nevada is home to the largest special recreation permit, and it is known for its vast deserts and iconic attractions like Area 51 and Las Vegas. It boasts unique national and state-owned land, including stunning parks like Lake Tahoe and Valley of Fire. Federally owned territories like Death Valley and Great Basin National Parks offer breathtaking landscapes. In some rural counties, the federal government controls more than 90% of the land. As a result, federal laws, regulations, and policies play a very important role in the management of vast areas of the State’s natural resources and significantly influence local public policy. 3. California 48 million acres of land in California (46%) are government owned. The state totals over 104 million acres. As the most populous state in the nation, California offers a range of attractions. From the iconic Disneyland and Golden Gate Bridge to the stunning natural beauty of Yosemite and Channel Islands National Parks, there is something for everyone. With diverse landscapes and federally protected lands, California is a must-visit destination for nature lovers. 4. Utah Over 38 million acres, approximately 71%, are government owned in Utah . Utah's many industries, such as recreation, tourism, oil and gas, renewable energy, agriculture, mining, and timber, are crucial to the state. They rely on access to public lands, which also serve law enforcement and emergency medical services in protecting residents and visitors. Utah is home to the Great Salt Lake, the largest saltwater lake in the western hemisphere, and Pando, a 107-acre forest of Aspen trees that all share the same root system. Utah land offers incredible landscapes as well as a variety of recreational activities. A few of the popular state parks include Dead Horse Point, Snow Canyon, and Goblin Valley State Parks. 5. Arizona 37.1 million acres of land in Arizona, over 51% , are government-owned. Arizona features a variety of landscapes that include remote mountains, large lakes, refreshing forests, desert highlands, and red canyons. Public land in Arizona provides a protected habitat for various animal species, including Mexican wolves and bighorn sheep. It is home to popular destinations such as the Grand Canyon National Park, which attracted millions of visitors in 2019. Other notable sites include the Petrified Forest, Saguaro National Parks, Oregon Pipe Cactus, Navajo, and Sunset Crater National Monuments, as well as Glen Canyon National Recreation Area. State-owned land, like Catalina, Slide Rock, Red Rock, and Kartchner Caverns State Parks, are also frequently visited. Who manages public land? Here’s a breakdown of the top agencies and the amount of land they own as of 2023: Bureau of Land Management - 245 million acres United States Forest Service - 193 million acres Fish and Wildlife Service - 95 million acres National Park Service - 85 million acres Bureau of Indian Affairs - 56 million acres Department of Defense - 25 million acres American citizens trust state and federal agencies to regulate and protect these lands. While the government's large land ownership is controversial, the objectives are clear: preserve nature and wildlife, educate people on conservation, enable global enjoyment, and conduct vital research for future improvement. Explore land for sale across the country for free on LandGate’s map today: Interested in learning who owns land and where? Explore nationwide land ownership data with LandApp. Whether you own land, represent property, or are curious to learn who your neighbors are, LandApp is the go-to tool for finding landowners:
- Solar Farm Development in Nebraska
What Should Landowners Know About Solar Farm Development in Nebraska? As of April 2024, Nebraska is positioning itself as a notable player in the solar farm sector, reflecting a national trend toward renewable energy adoption. With over 200 days of active sunlight, Nebraska has seen significant strides in its solar capacity, notably with the completion of several large-scale projects that contribute to its growing portfolio. Nebraska’s solar energy capacity stands at 30MW in recent years, with further expansion expected as additional projects are underway. The state benefits from policies such as net metering, which allows residential and commercial solar system owners to receive credit for the excess electricity they generate, and reduced loan rates for solar projects due to incentives such as PACE Financing and the Nebraska Dollar and Energy Savings loans. Moreover, the involvement of major public utilities, including the Nebraska Public Power District, which has committed to increasing its renewable energy sources, underscores a broader shift toward sustainable energy solutions. With a supportive regulatory environment and initiatives like community solar projects that allow multiple individuals to benefit from a larger solar array, Nebraska is embracing an energy future that promotes sustainability and economic growth. The number of solar farms in Nebraska will 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 payments , also known as solar payments. Landowners in Nebraska 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. Several factors 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 Nebraska solar developers. Traditionally, 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 Nebraska? Step 1: Solar Lease Negotiation Period in Nebraska 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 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 is to combat inflation. Step 2: Solar Lease Option Agreement in Nebraska 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 Nebraska 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 Nebraska 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 Nebraska ? 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 Nebraska 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 Nebraska 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 Nebraska ? 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 Nebraska 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 Nebraska? In Nebraska, the largest solar farm is an 8.5 MW facility capable of powering significant numbers of homes. This output has the potential to cater to the energy needs of around 6,000 households as the typical electricity consumption of an average household in Nebraska stands at 12,408 kilowatt-hours per year. What is the Impact of the IRA and Other Factors in Nebraska? Nebraska 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 Nebraska. 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 Nebraska, solar energy is eligible for a tax credit. Federal Solar Investment Tax Credit (ITC): Under the IRA, homeowners in Nebraska can claim a 30% tax credit on the installation costs of solar photovoltaic (PV) systems. This substantial credit, available for systems installed between 2022 and 2032, reduces to 26% in 2033 and 22% in 2034, before phasing out in 2035. The average solar system installation in Nebraska costs around $37,275, meaning the 30% credit could amount to approximately $11,183 . Nebraska Dollar and Energy Saving Loans: This state-level incentive provides low-interest loans for purchasing solar systems, with interest rates as low as 3.5%, making solar technology more accessible and affordable for residents. PACE Financing: Available at the local level, this program offers affordable solar loans that are repaid through property tax bills, enhancing accessibility and easing financial burdens associated with upfront costs. Net Metering: In Nebraska, this program allows homeowners to earn credits for surplus energy generated by their solar systems. These credits can offset future utility bills, providing ongoing financial returns on the investment in solar technology. Lincoln Electric System Capacity Payment: This local incentive offers a one-time payment for net-metered solar systems below 25 kW, paying $375 per kW for south-facing systems and $475 per kW for west-facing or tracking systems. The increase in LMP pricing has made solar energy an attractive option for electricity generation in Nebraska. 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, Nebraska’s PPA pricing has increased by 36% and the LMP price increased by 75.1%. In the context of solar energy projects in Nebraska, the relationship between LMP and PPA pricing lies in how the PPA sets the pricing terms for the electricity being sold. The increasing price in the PPA provides certainty to the solar developers about the revenue they will receive for the electricity that they produce. This pricing is especially valuable given the significant 75.1% rise in LMP prices over the past three years, reflecting higher market prices for electricity at specific grid locations due to increased demand. Although the rising LMP prices promote investment in solar infrastructure by potentially increasing revenues for solar energy producers, they also elevate electricity costs for consumers and businesses. This dynamic has slightly tempered the growth of renewable energy initiatives in Nebraska. However, the expansion of various solar incentive programs and supportive state policies ensure that the development of solar projects remains robust, maintaining a positive trajectory for the state's renewable energy landscape. Commercial, Community, & Behind-the-Meter Nebraska 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 Nebraska, active solar farms are typically 71.53 acres, allowing about 2.95 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 Nebraska serve energy customers directly within the same area or community. These solar farms tend to be smaller in size about 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 Nebraska The solar energy industries within Nebraska 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 Nebraska 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’s tool, LandApp. Land professionals can utilize LandGate’s data and analytics to inform their clients about their resource’s potential.
- Solar Farm Leasing in West Virginia
What Should Landowners Know About Solar Farm Development in West Virginia? As of September 2023, West Virginia is a promising state for solar farm activity and development. The number of solar farms in West Virginia 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 payments , also known as solar payments. Landowners in West Virginia 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 West Virginia 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 West Virginia? Step 1: Solar Lease Negotiation Period in West Virginia 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 West Virginia 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 West Virginia 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 West Virginia 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 West Virginia? 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 West Virginia 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 West Virginia 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 West Virginia? 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 West Virginia 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 West Virginia? In West Virginia, the average solar farm size is 245 acres generating approximately 69.5 megawatts (MW) of electricity when operating under optimal conditions. This output has the potential to cater to the energy needs of around 6,950 households as the typical electricity consumption of an average household in West Virginia stands at 10,870 kWh per year. What is the Impact of the IRA and Other Factors in West Virginia? West Virginia 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 West Virginia. 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 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 West Virginia, solar energy is eligible for an investment 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. The combination of an increase in LMP pricing plus an increase in PPA pricing has made solar energy an attractive option for electricity generation in West Virginia. 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, West Virginia experienced a notable 10.27% increase in PPA pricing and an average price LMP price increase of 58% (this is expected to decrease slightly by -4.56% in 2024). In the context of solar energy projects in West Virginia, 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 West Virginia. Commercial, Community, & Behind-the-Meter West Virginia 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 West Virginia, solar farms are typically 245 acres, allowing about 69.5 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 West Virginia 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 West Virginia The solar energy industries within West Virginia 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 West Virginia 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.












