Pennsylvania’s Alternative Energy Portfolio Standards (AEPS) requires Pennsylvania’s largest electricity providers to obtain a certain amount of their electricity from renewable energy sources, such as solar. Companies that develop and sell solar electricity are looking for suitable acreage to develop “commercial, utility-scale solar farms” in a variety of sizes.
What is a solar land lease?
A solar land lease is an agreement between the Landowner and SANIK SOLAR (solar developer) in which the solar developer leases your land for the purpose of installing a commercial, utility scale photovoltaic (PV) solar farm to generate electricity. The Landowner benefits from the land lease payments you receive from the solar developer for the use of your land.
If I sign a solar land lease, does it mean a solar farm will definitely be built on my property?
The property will have to pass all due diligence and after that a lease will be signed and a Solar Farm will be built.
How will I be paid if I lease my property to a Sanik Solar?
Lease Payments will be made monthly.
Who will be responsible for obtaining the required permits and licenses?
SANIK SOLAR will obtain all governmental permits, licenses, certificates, approvals, variances and other entitlements for use, including the utility interconnection agreements, necessary or beneficial for the installation and operation of the solar farm.
Will a solar land lease conflict with other agreements, easements, or leases that may exist for my property?
Many properties in Pennsylvania suitable for commercial, utility-scale solar farms may have existing leases in place for oil and gas or other mineral extraction. Some may even be enrolled in conservation easement programs or preferential tax programs, such as Clean and Green. Before signing a solar land lease, you and the solar developer should identify and thoroughly understand any other agreements, easements, or leases associated with the property and ensure that the solar land lease agreement addresses potential conflicts.
Who will be responsible for insuring the solar farm, its repairs and maintenance?
The solar land lease agreement should clearly identify that SANIK SOLAR will be responsible for the solar farm, its repairs and maintenance.
How long will the solar farm be installed on my property?
Sanik Solar land leases are typically 25 years with (2) five year options to renew.
Who will be responsible for the solar farm removal at the end of the land lease?
SANIK SOLAR is responsible for the removal of the Solar Farm.
Can my land be converted back to its prior state or use after the life of the solar farm?
Yes, land can be converted back to its prior use at the end of the operational life of a solar farm.