3 Landowner Objections to Leasing Land for Renewable Energy
Leasing land for solar, wind, or battery storage is a big decision.
After weighing the pros and cons, some landowners decide that moving forward is the best course of action. Others, however, ultimately decide the risks aren’t worth the potential gain.
For energy developers, receiving too many “no” responses can threaten the viability of a renewable project. Let’s take a look at why landowners say no and tips for dealing with objections.
Landowner Objections to Solar, Wind, and Battery Storage
1. “We’re a Farming Family.”
A project’s area of interest may include hundreds of acres of agricultural land, which could be owned by multiple farmers. In the United States, it’s not uncommon for a family farm to trace its roots back to the 19th century. Deviating from “what works”—in this case, planting and harvesting corn, soybeans, wheat, or some other crop—can feel like a risky proposition. As a result, some landowners are less inclined to entertain nonagricultural opportunities like solar, wind, or battery storage.
Effectively engaging farmers requires an empathetic, educational approach and a healthy dose of creativity. Experienced land agents keep this in mind and work to build trust with farmers, helping them avoid all-or-nothing decisions. In many cases, the farmer may be able to continue farming while opening the door to income diversification. In situations where future generations seem uninterested in agriculture, renewable energy can represent an opportunity to keep land in the family’s name.
2. “Renewable Energy is Too Political.”
Solar, wind, and other forms of renewable energy are hotly debated by people on both sides of the political aisle. But, in reality, that’s nothing new. Energy has a long track record of being a political football. Whether it’s offshore drilling, the Keystone XL Pipeline, fracking, or a utility-scale solar park, politicians—and the media—never seem to stop talking about the downsides of energy generation.
Land agents face a number of political obstacles when approaching landowners about renewable projects. In addition to the prevailing political discourse of the day, there’s also a closer-to-home consideration to contend with. That is, what will neighbors think? It’s a fair point that can certainly influence a landowner’s decision-making.
3. “It’s Not Financially Worth It.”
Land lease agreements vary depending on multiple factors, not the least of which include land condition, proximity to existing infrastructure, project type, and local economics. Therefore, assessing true financial impact requires an honest review of the landowner’s current and future cash flow scenarios.
Providing a landowner with accurate information about expected payments during the phases of construction and operation is key. With this data, the landowner can develop a side-by-side comparison and decide whether or not to participate.
Need Help Overcoming Landowners’ Objections?
Contact our team at New Era Land Services. We can partner with you to develop an effective on-the-ground strategy that includes landowner outreach, engagement, and education.