Commercial Solar Farm and Project Leases

Intro to Solar Leases

I encourage you to pay special attention to the lease marked Exhibit B, because from the looks of it, the property owner may have had input from an attorney to make sure certain protections were included in this lease, however there still seems to be some dangerous aspects in the lease.

 

ALL of the leases obtained by Orion Renewables, that have come through my area, have been sold to other developers and/or companies.

 

So, basically what Orion is doing is laying the ground work. That means they find a rural geographical area in the country with good cropland and either no solar ordinances or weak solar restrictions.

 

They also seem eager to find OLDER Farmers and/or landowners that do not farm their own land.

 

These individuals usually rent their land out to other farmers, so that crops can still be grown on the land.

 

I personally have met multiple elderly individuals that leased their land to Orion Renewables with hopes of receiving large payments, only to pass away before Orion’s solar project was built.

 

While reading these leases, I discovered wording such as “Replacing, Relocating and Refurbishing” the solar equipment, including overhead and underground electrical transmission, distribution and communications lines, energy storage facilities, power generation facilities, roads, meteorological stations and maintenance BUILDINGS.

 

Yes, they do plan on putting BUILDINGS and possibly even electric sub-stations with DEEP Concrete FOUNDATIONS on the farmland.

 

I noticed some of those words because I read articles about “green energy” companies that were going to loose their tax money after 10 years. They went in and replaced or REFURBISHED some equipment, in order to get another 10 years of Tax Payer money.

 

This procedure allows them to go the entire 30 years, using YOUR tax dollars, UNLESS we change the people in Washington D.C. and State Officials that seem eager to give our hard earned tax dollars to the green energy movement, for “PART TIME” electricity.

 

Some of the wording I encourage you to look for involves,

 

Their desire to use CROP LAND ONLY.

 

* A Project Site will include all cropland acreage (as such acreage amount has been certified

by the USDA's Farm Service Agency)

 

* Lessee will pay Owner annual rent for all Project Site Tillable Acreage.

 

Some of these leases also contain wording such as:

 

* “Lessee shall have the right under the Agreement to control and restrict access onto

and over the Property and exclude others.”

 

* The term of these leases are 30 years, BEGINNING when the project is begins DELIVERING electricity to a grid, not when they sign the leases or begin construction.

 

* There is also a clause stating the solar developer can remove any or all Solar

Facilities at any time.

* The lease allows the Developer to install Poles and one or more substations that can be used to transfer the electricity off the property.

 

* If Lessee intends to install an electric substation or switchyard, or an operations & maintenance building, on the Property, then Lessee may lease or purchase the actual acreage occupied by the substation, switchyard or building.

 

* Property may be removed from the Conservation Reserve Program because of Lessee's installation of Solar.

 

* Owner must agree to use reasonable efforts to cause the Property not to be reclassified from

it’s present agricultural or open space exemption.

 

* Owner agrees to provide to Lessee all reasonable assistance in contesting the validity

or amount of any such taxes, including joining in the signing of any reasonable protests or

pleading that Lessee may deem advisable to file.

 

* Lessee shall have the right, to contest by appropriate legal proceedings,

any law or ordinance. Owner shall reasonably cooperate by joining in the signing of any reasonable protests pleadings contest or proceeding.

 

* Owner shall assist and cooperate with Lessee, in complying with or obtaining any land use

or siting permits and approvals, property tax abatements, building permits, environmental impact

reviews, or any other approvals required for the financing, construction, installation, monitoring,

replacement, relocation, maintenance, operation or removal of Solar Facilities (whether located on

the Property or elsewhere), including execution of applications for such approvals if required.

 

In connection with any applications for such approvals, Owner agrees at Lessee's request to support

such application at any administrative, judicial or legislative level, including participating in any appeals or regulatory proceedings.

 

* If Owner is contacted directly by any governmental agency about this Agreement, any Solar Facilities or the Property, Owner shall notify Lessee.

 

To the extent permitted by law, Owner hereby waives any setbacks or other restrictions on the location of any Solar Facilities to be installed on the Property or on adjacent properties, including but not limited to waiver of all property line setbacks, pursuant to state or county rules, regulations or ordinances (that is, Owner approves a reduction of each such setback to zero.)

 

* Neither the bankruptcy nor the insolvency of Lessee shall be grounds for terminating this Agreement or any interest therein.

 

 

Here comes the BIG ONE

 

* Lessee has the right, without obtaining the consent of Owner to (a) grant subleases, separate easements, to one or more Assignees, (b) collaterally assign, mortgage, encumber, pledge or transfer all or any portion of its right, title or interest therein to one or more parties providing financing to Lessee, and/or (c) sell, lease, assign, transfer or otherwise convey all or any portion of its right, title or interest therein to one or more Assignees.

 

As I mentioned above, Orion Renewables promises to stick around, but they ended up SELLING their projects to other companies and have NEVER actually built a solar project themselves, in any area of this country, that I am aware of. And there is no guaranty that a new developer or buyer is from the U.S.A.

 

* For 30 years, the Property owner shall not place towers or antennas of any type, plant trees or construct buildings or other structures or facilities, on their own property, that might delay the installation of, disrupt, or otherwise cause a decrease in the output or efficiency of the Solar Facilities.

 

Those are just a small sample of interesting lines. I am encouraging others to comment on anything they find in these leases that you think are worth exposing.

Here is the link where you can download a variety of Solar Leases. Download Solar Leases HERE