Commercial Site Leasing

We Want to Lease Your Roof, Parking Lot and Land!

As a commercial real estate owner or manager, you have a definite path to creating additional revenue from your rooftop. New Jersey is “talking” right now about solar energy as the state has set a goal to supply 50% of the available renewable electricity by 2030. Currently, the state has implemented only about 5% of this plan since the enactment to incentivize solar in 2009.

If you have a business or farmland, now is the time to add a solar tenant to your property. Federal and state solar incentives have created a unique opportunity to earn high lease rates for solar on your property.

Learn how Solar Cents’ Rooftop Revenue and Commercial Site Leasing Programs can benefit your organization.

Solar Land Leasing – Commercial Site Leasing

At Solar Cents, we lease commercial rooftops and parking lots while providing revenue and savings for the property owner and tenant. Using our experience and proven processes, we originate, develop and consult for the sale and lease of solar rooftop, ground mount, and carport projects. We help identify qualified locations and provide turnkey development solutions that increase revenues and decrease operating expenses for owners and tenants.

With many determinants to consider before leasing your farm or land to solar energy developers, most land and business owners don’t know the right steps to take to maximize their solar benefits. Using a solar consultant can have significant advantages. Solar Cents operates as a neutral consulting firm that doesn’t act on behalf of specific solar developers or service providers. Our responsibility is to advocate for increased adoption of solar energy while helping landowners get the best solar leasing solutions possible.

Through our partners, we provide comprehensive construction design, installation, and management services for solar energy and energy efficiency projects. With a focus on the commercial, industrial, and municipal sectors, we work with clients to maximize energy savings in order to generate immediate positive cash flows with limited out‐of‐pocket expenses.

Why Consider Commercial Solar Land Leasing?

Leasing large tracts of land to solar farms is a hugely profitable alternative for landowners looking to generate additional revenue with minimal effort. Unlike before, the cost of setting up commercial solar farms has dropped, attracting greater interest in solar energy development.

Ideally, solar farms should be constructed on wide and open grounds close to the main electric transmission grid. Other factors that commercial solar farms consider before installing a solar farm include solar resources, local incentives, proximity to demand, and the value of electricity in the region.

Nonetheless, large-scale landowners and farmers who are being approached to lease their lands for solar farm development have to make long-term decisions about their lands. Most landowners are uncertain how much they can earn from leasing their farms to commercial solar energy companies.

While leasing rates vary depending on your state and other factors, it is important to work with an expert like Solar Cents when estimating these values. We provide decades of experience with our competent and professional solar energy consulting services to help farmers make informed decisions on solar energy.

How Does Commercial Solar Land Lease Work?

Solar farms are generally large-scale solar PV projects that generate and distribute energy through the main grid. These farms can be used for utility-scale or residential community projects. However, with an increasing demand for renewable energy, solar developers have adopted large-scale solar developments, either on commercial buildings or large sizes of land.

That said, a commercial solar land lease is a long-term agreement, between 20 and 25 years, between solar energy developers and landowners. Payments for land leases are done annually and calculated per acre. Since the amount of energy generated is consistent and predictable, most solar energy developers offer fixed rental rates.

With this, landowners can calculate their estimated revenue projection during the entire period. Even then, most landowners don’t understand the intrigues that come with commercial land leases. Working with a solar energy consultant during the negotiation period comes in handy.

What Determines Commercial Site Leasing Rates?

A common question that we find most landowners asking our team when thinking of leasing farmland to solar developers is in regards to the profitability of the solar farm… i.e. “what value or income can we see as a landowner when leasing our land for solar systems?” Income from commercial site leasing for solar projects depends on a number of factors, but typically we find that the four variables discussed below are the most important in determining profitability.

Factor One

Location

The location also plays a significant role in determining the commercial lease rates. If the developer wants to install a solar farm in a region where finding large land sizes is difficult, they should expect to pay high rates. Contrastingly, if the land supply is high, the parcel will likely command low rent rates.

Factor Two

Land Value

If the landowner expects to generate more income from the land by renting or using it alternatively, solar developers should match their offers accordingly. The demand for agricultural land varies from one area to another. This also greatly influences the land value. In most cases, valuable lands demand high rent per acre.

Factor Three

Grid Access

Proximity to the main electricity grid, particularly the three-phase power, also determines the value of the parcel and solar rent. That aside, grids that are in good condition can also increase the lease rates.

Since location is a primary factor determining commercial solar lease rates, the average land rates for solar farms vary from one state to another. That said, with location and other factors mentioned above taken into consideration, commercial site leasing rates range between $300 and $2000 per acre.

Factor Four

Project Size

Due to several factors, such as electrical infrastructure and landowner risk vs. reward, small land sizes (below 30 acres) often command a high price per acre. Finding small-sized lands in prime locations, such as near substations, accessible roads, or three-phase power, reduces installation costs and simplifies the development process for solar developers compared to developing infrastructure to access a large tract of land that lacks close infrastructure.

Commercial Site Leasing