Solar Ground Leases: Landowner and Developer Due Diligence, Negotiation, and Drafting Strategies

This CLE webinar will prepare real estate counsel to negotiate and draft leases for land to be used as solar farms. The panel will discuss due diligence considerations for developers and landowners. The panel will also examine key lease provisions for each party and will analyze practical considerations associated with solar ground leases.

With increasing energy needs, more land previously used for agricultural purposes is now being eyed by developers with the purpose of creating solar farms—large scale installations of solar panels that capture sunlight and convert it into electricity. Depending on the agreement between the developer and landowner, the land may have dual uses for energy production and traditional farming activities. Counsel for landowners and developers should understand the considerations unique to solar ground leases to minimize risk for their clients.

Due diligence considerations for landowners include lease term, since these leases are typically 20+ years, and the impact on any current and future land uses; landowner obligations under the lease; and potential financial implications. Developer due diligence considerations include performing a feasibility assessment that includes, among other things, environmental concerns and possible encumbrances; zoning and permitting issues; and tax implications.

Key lease provisions for both parties include: (1) lease term and structure; (2) land use restrictions and easements; (3) payment provisions; and (4) lease termination and equipment removal.

Listen as our expert panel discusses marketplace trends for solar ground leasing. The panel will examine key due diligence considerations for landowners and developers and address how to negotiate and draft solar ground leases to help minimize the likelihood of future legal disputes.