Wind Power Land Lease Agreement

Unlike the conventional wind project, a typical solar photovoltaic project on a supply scale is a land-intensive operation that requires the exclusive use of large parts of the land. With the exception of rooftop photovoltaic projects on existing buildings or structures that do not affect land use, a supply-scale photovoltaic project generally excludes other surface uses within the project plan. Even if the solar project does not cover a landowner`s entire land, dismantling much of it into separate high-density solar surfaces can make the balance of the land unsuitable for continued economic exploitation for agriculture or another. Prices and financial incentives also differ between wind and solar projects. As a result, the site management agreement, which envisages or authorizes a possible combined development of wind and solar energy, poses a more complex problem for all parties involved. On average, rents for the placement of a single wind turbine lease can pay landowners up to $8,000 per year. Thus, the wind economy can quickly become very valuable, especially for large sites that can accommodate several hundred wind turbines. It is important to note, however, that wind farm rental rates can vary considerably from site to site. While your property may meet the main qualifying factors mentioned above, it is quite possible that your neighbour also has a country that meets these requirements, which could reduce the value of the lease offered to you.

It is only if your property fulfils all the qualifications mentioned above and is at the same time in an area where there is a need for energy and where there is not much local competition that you get a high quality wind leasing contract. Second, the actual production of wind energy from wind turbines depends largely on the average annual wind speed above the object. Any natural or artificial disability (example. B a tall building, silo or series of tall trees) that disrupts wind circulation and wind speed over the ground can have dramatic and negative effects on the efficiency of wind turbines in energy production and cause damaging turbulence to turbines. A developer wants to control the size and nature of structures and other obstacles that can be built by the landowner and third parties during the life of the wind farm contract or built or placed on the land. An effective way to obtain this control is to impose a sufficient ownership charge to build, operate and protect the project and its wind resource and to include in the wind farm contract non-interference agreements that restrict the owner`s right to disrupt wind movement over the land. “There are now a lot of experienced wind turbines,” says Shannon Ferrell, a professor of agricultural law at Oklahoma State University. You can ask for references to the company and talk to the landowners from whom the developer has carried out other projects.

B. Periodic payments. Regular payments made by the developer to the landowner are the most common payment structure in current wind energy contracts. Often, payments are structured to include a combination of the following: As a general rule, the most lucrative and long-term source of income for the landowner from a wind farm contract is based on energy generated from project turbines on the owner`s land.