Solar Land Acquisition
Solar land acquisition is a process by which organizations obtain the proper land usage rights to construct and operate utility-scale, community, or other types of solar parks. Signing lease or purchase agreements with landowners is a key objective in the solar land acquisition process.
Barriers to Solar Land Acquisition
Acquiring land for large solar parks in the United States requires careful planning, community outreach, and project management. Failing to develop an effective land strategy can threaten the viability of a solar project due to:
Number of Parcels Required: One utility-size solar project could involve thousands of acres and dozens of parcels. Piecing multiple parcels together for solar is similar to completing a jigsaw puzzle—one missing piece can spoil an otherwise beautiful picture.
Landowner Buy-In: Parcels in an area of interest (AOI) may be owned by multiple individuals, who use their land for agriculture, hunting, and other activities. Convincing landowners to participate in a solar project involves relationship building, skilled negotiation, and empathy.
Permitting Roadblocks: Not every county, city, or town in the United States is interested in permitting solar projects. In fact, the National Renewable Energy Laboratory (NREL), a national laboratory of the U.S. Department of Energy, offers a database detailing local regulations that may inhibit solar projects.
Proximity to Infrastructure: Being able to efficiently get solar energy onto the grid is essential for ensuring return on investment. A massive tract of land with a single owner in the Southwest may seem ideal for solar, but, without a nearby substation, the location becomes less viable.
Complex Land Ownership Histories: Land ownership in the United States traces its roots back to early days of the country’s founding. A good example of this is The Land Ordinance of 1785. According to the History, Art & Archives of the U.S. House of Representatives, “The Land Ordinance of 1785, enacted by the Confederation Congress, defined how ownership of the vast lands in the Northwest Territory would be legally transferred from the federal government to states and individual landowners.” Most parcels have changed hands multiple times over the course of four centuries. And, in states with severed mineral rights, things get especially complicated.
Two Approaches to Solar Land Acquisition
Solar project developers often approach land acquisition in one of two ways:
In-House: Relying on an in-house land acquisition team offers enhanced control over the methodologies, research, and techniques employed. For organizations that consider HR and staffing a competitive advantage, building and scaling an in-house land team could be a prudent decision. However, investing in an in-house function comes with a tangible cost that may not align with long-term goals—especially if the organization’s solar pipeline is uncertain.
Outsourced: Partnering with an outsourced land company, such as our team at New Era Land Services, can keep solar project developers focused on strategic initiatives. Landowner outreach and engagement, lease negotiation, courthouse research, permitting support, and GIS (geographic information system) analysis are examples of services offered by such providers.
Land Acquisition Support for Solar Projects
Need help with an upcoming solar project? New Era Land Services is an experienced team of land professionals, specializing in renewable energy.
Contact us to explore our land services for solar land acquisition.