Solar Lease


Skip Cave
 

Group,

I have in-laws that own 100 acres of land in Lamar county. They were recently approached by a company called "Solar Proponent", which has offered to lease their land for 40 years, for $600/acre. I'm curious if anyone on this list has heard of these folks, or have any experience in solar property leasing, in order to help my family understand the pros & cons of such a deal. You can contact me privately via email to discuss this, if you have any input.

Skip Cave
Cave Consulting LLC


Skip Cave
 

The lease is $600/acre/year.

Skip Cave
Cave Consulting LLC


On Thu, Sep 16, 2021 at 6:28 PM Skip Cave via groups.io <skip=caveconsulting.com@groups.io> wrote:
Group,

I have in-laws that own 100 acres of land in Lamar county. They were recently approached by a company called "Solar Proponent", which has offered to lease their land for 40 years, for $600/acre. I'm curious if anyone on this list has heard of these folks, or have any experience in solar property leasing, in order to help my family understand the pros & cons of such a deal. You can contact me privately via email to discuss this, if you have any input.

Skip Cave
Cave Consulting LLC


Mellen West
 

One consideration is how a solar lease may effect agricultural tax exemptions. Way above my pay grade.

M

 

From: main@NTREG.groups.io <main@NTREG.groups.io> On Behalf Of Skip Cave
Sent: Thursday, 16 September, 2021 6:59 PM
To: main@ntreg.groups.io
Subject: Re: [NTREG] Solar Lease

 

The lease is $600/acre/year.

 

Skip Cave
Cave Consulting LLC

 

 

On Thu, Sep 16, 2021 at 6:28 PM Skip Cave via groups.io <skip=caveconsulting.com@groups.io> wrote:

Group,

 

I have in-laws that own 100 acres of land in Lamar county. They were recently approached by a company called "Solar Proponent", which has offered to lease their land for 40 years, for $600/acre. I'm curious if anyone on this list has heard of these folks, or have any experience in solar property leasing, in order to help my family understand the pros & cons of such a deal. You can contact me privately via email to discuss this, if you have any input.

 

Skip Cave
Cave Consulting LLC


Skip Cave
 

Thanks to Pup, Mark, & Millen for their insightful replies to my post on solar leases. The comments were very helpful in helping my family decide how to proceed in the leasing process.

Skip

Skip Cave
Cave Consulting LLC


On Thu, Sep 16, 2021 at 6:28 PM Skip Cave via groups.io <skip=caveconsulting.com@groups.io> wrote:
Group,

I have in-laws that own 100 acres of land in Lamar county. They were recently approached by a company called "Solar Proponent", which has offered to lease their land for 40 years, for $600/acre. I'm curious if anyone on this list has heard of these folks, or have any experience in solar property leasing, in order to help my family understand the pros & cons of such a deal. You can contact me privately via email to discuss this, if you have any input.

Skip Cave
Cave Consulting LLC


Mellen West
 

Skip do your inlaws live on the property or is it vacant land?  Where in Lamar county is it located?    Remember that the Invergy Sampson Solar project is probably nearby.  See May NTREG meeting
Mellen  (not Millen)


Michael (Mike) Landon
 
Edited

Some other questions. How much will they receive in advance? Looks like the total will be about 2.4 million dollars for 40 years - A good retirement (Until they pass on) - Will the company be willing to pay that in advance? Will the Solar company have entitlement to Mineral rights (Is that already sold or leased?) - If the Solar company goes belly-up in a year or two and they just walk away - what would the land look like and what would clean-up cost? There will be lots of other buildings like power lines and transformer switching stations. Are the 100 acres isolated and if so would they get free right-of-way through non-leased property leased. Would the lease separate them from the non-leased property?

I just looked "Solar Proponent, LLC" up and they are looking for combinations (groupings) of land that equal 3,000 acres so they can produce 300 Mega-Watt or more. A 100-acre field in the middle of a great big one is a good place to be - Maybe -  they may have other designers for it than Solar Cells? Could be also access and storage?  

Don't know how it works in the area but who would pay the "Dreaded Property Tax Increase"?
 
Good luck,

Mike Landon


Rosa R. Orenstein
 

Mike,

 

              All great questions, some of which were answered at the NTREG membership meeting held on September 11, 2021.  For example, the clean up or “decommissioning costs” are now required under the laws passed in the last legislative session.  And, those commissioning costs must be supported by financial support available at the end of the facility’s useful life.  In addition, the “dreaded property tax increase” was also addressed. Other questions require a professional to answer as they are all dependent on the facts of each situation.

 

              Rosa

 

Rosa R. Orenstein, Esq.

Orenstein Law Group

1201 Elm Street

Suite 4020

Dallas, Texas  75270

Telephone: 214-757-9101, ext. 1002

DD: 469-232-4334

Facsimile: 972-764-8110

rosa@...

www.orenstein-lg.com

 

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From: main@NTREG.groups.io <main@NTREG.groups.io> On Behalf Of Michael (Mike) Landon
Sent: Saturday, September 18, 2021 4:15 PM
To: main@NTREG.groups.io
Subject: ADV: Re: [NTREG] Solar Lease

 

[Edited Message Follows]

Some other questions. How much will they receive in advance? Looks like the total will be about 2.4 million dollars for 40 years - A good retirement (Until they pass on) - Will the company be willing to pay that in advance? Will the Solar company have entitlement to Mineral rights (Is that already sold or leased?) - If the Solar company goes belly-up in a year or two and they just walk away - what would the land look like and what would clean-up cost? There will be lots of other buildings like power lines and transformer switching stations. Are the 100 acres isolated and if so would they get free right-of-way through non-leased property leased. Would the lease separate them from the non-leased property?

I just looked "Solar Proponent, LLC" up and they are looking for combinations (groupings) of land that equal 3,000 acres so they can produce 300 Mega-Watt or more. A 100-acre field in the middle of a great big one is a good place to be - Maybe -  they may have other designers for it than Solar Cells? Could be also access and storage?  

Don't know how it works in the area but who would pay the "Dreaded Property Tax Increase"?
 
Good luck,

Mike Landon