There has been a lot of talk about companies approaching businesses and rural land owners about leasing their rooftops or farm/vacant land to install solar grid-tied PV systems on . They propose to pay you for using currently unused space, and through the lease, turn the unused space into revenue generating space.
There are a few of things to consider before signing on the line:
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Why would you lease the space to someone else? You can purchase a system for $5 – 7 per watt, which will earn about $1 per watt per year. This means you should be able to recover the cost of the equipment in 5 - 7 years. The OPA contracts run for 20 years, leaving you with 13 – 15 years of 100% profit. Banks are moving towards 10 year financing packages and with equity in your home/farm/building, the rates are very attractive.
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If the company is proposing to install on your rooftop, will they provide an engineer stamped assessment of whether you roof/building can support the additional load. There are currently no building code requirements, or building permits that address solar PV installations, so how do you know that your roof can support the system proposed? While microFIT sized installations are not a big issue, FIT sized installations could pose risks.
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Who insures the equipment, and damage that it may cause. If it is riding on your building insurance, it would add to the question, why lease as opposed to own?
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If you are leasing farm/agricultural land for the installation of PV Solar, the land will probably be rezoned industrial, which will result in additional taxes. Who will pay for this?
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What happens if you sell the building or land or farm? If the new owners do not want the solar lease, will it affect your ability to sell?
There does not seem to be a lot of benefits to the lessor, except some small return for no effort.
Before you sign, make sure you review the lease with a lawyer, and ask them about how you can get out of it should you need to.
Are these companies really providing a service or just taking advantage of people that don't know enough?
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