Solar Land Lease Agreement Example

7. Tax considerations Most leases/relief provide that the solar company pays increased property taxes due to the installation of photovoltaic installations. However, changes may be needed to address possible “indecisions” or the introduction of recapture taxes due to the loss of the “farmland” classification. While each agreement on the use of solar energy may be unique, there are a few considerations that are in common to many agreements. 3. ConfidentialityThe leases and leasing options contain confidentiality clauses that apply to all terms of the contracts, including financial terms and even the identity of the solar company. Therefore, once an agreement is signed with a confidentiality clause, it may constitute an infringement on the terms of the contract. 6. RentalsThe rental can be extended for decades, it is important to provide a mechanism to ensure that rents meet inflation. Many leases have a rent repayment plan that increases annual rent by a certain percentage. If you are dissatisfied with the percentage of the rent division, a homeowner might consider indexing the annual increase to either the consumer price index or the power purchase contracts approved by the Michigan Utilities Commission (DSP). 8.

Restoration Most homeowners want the lease to require the solar company to restore the property after the lease expires. These provisions should include the removal of all equipment up to at least the depth of the plow and the exit from the terrain free of hazardous conditions for the solar company. 5. Terms of renewal Most leases have an initial term of 10 to 25 years which gives the solar company the right to terminate the lease prematurely if the project proves economically unenforceable. These leases also often give the solar company the option to extend the lease for several successive five-year maturities. The combined extension conditions often correspond to the initial duration of the lease. 2. The option to lease user contracts is often presented as a “rental option.” For a modest payment, the solar company holds exclusive rights (but not the obligation) to lease the property.