# Solar farm??



## Chipper (Dec 22, 2012)

Have a company that wants to lease some of my land for a solar farm. We have a nice south facing field that we don't use for anything. It's about 8.5 acres and the lease is for 20 years. 

Would be a great supplement for retirement. But would lose the use of land for any future development. Anybody have any experience with this, pro or con??

They cover all cost for install and clean up once lease is over. Only thing I have to do is sign lease for land and live with solar panels in my back field.


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## jimcosta (Jun 11, 2017)

There is a high probability of hyperinflation very soon in the US, not to mention over 20 years. I highly suggest you hold out for a Hyperinflation clause added to their contract or on a separate page amendment to their standard contract with it being signed by both parties at contract signing time.

Here is a sample clause I wrote recently for a lease contract for someone. Hyperinflation clause is not a standard contract clause. I could not find a sample one online so they are not popular yet.
Note I do not trust government Consumer Price Index numbers and am using an unbiased alternate source.

*Hyperinflation*. In the event of unusual and significant changes in the Consumer Price Index (CPI), the monthly rent and penalty shall be adjusted accordingly. The CPI rate shall be determined by Shadow Government Statistics (1980 based) (Link). Each time the CPI increases 3% then the rent and penalty shall be increased 3% as well for each 3% increase of the CPI, beginning with the next month's rent. At the date of this lease contract signing the CPI is 14.5%.

Alternate Inflation Charts
_Note: The 14.5% rate is as of today._

P.S. Among other things I am a Paralegal with a heavy business background.


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## paraquack (Mar 1, 2013)

Have you done any research as to tax on the land my change, causing you a larger tax burden? Have a lawyer go over the contract for loop holes.


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## Chiefster23 (Feb 5, 2016)

There is information out there where wind power companies go out of business and never dismantle or remove old windmills. 

On a related note, it is usual for maritime shipping companies to have each ship incorporated as a separate company. If one ship causes a large disaster, that particular ship/corporation declares bankruptcy and walks away without affecting the rest of the company. I suspect these wind power people are using the same tactic.

I would investigate to make sure this isn’t the case in your situation. Maybe require them to post a bond up front for property reclamation later on.


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## Ahudson (May 25, 2021)

Don't do it. Land values drops by over 30% for everyone with a few mile radius of the farm.
Bad for land will mess any wells in the area. Do research before you sign. Not to mention you won't have a friendly neighbors anymore.
Just rent the land out to farms.
In the middle of fighting a 3200 solar acre farm in my area.


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## Chipper (Dec 22, 2012)

Yeah I pretty nervous about it. Money looks good but I'll never live long enough to see the end. Who knows what property values will be in another ten years?? If it's anything like the last 5 I'd be a fool.

You guys did bring up some good points I hadn't thought about. Thanks.


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## inceptor (Nov 19, 2012)

Chipper said:


> Yeah I pretty nervous about it. Money looks good but I'll never live long enough to see the end. Who knows what property values will be in another ten years?? If it's anything like the last 5 I'd be a fool.
> 
> You guys did bring up some good points I hadn't thought about. Thanks.


I've seen this discussed recently on another board. Part of what I found out is contracts can vary greatly between companies. I agree with @jimcosta about the hyperinflation clause. This was recommended by someone who reviews these contracts. Some contracts have small print additions so be watchful of those. I would have the contract gone over by your attorney.


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## jimcosta (Jun 11, 2017)

Those were excellent points brought up by Chiefster. However they can be dealt with in the contract.
Consider this:

A) Estimate the cost of Equipment Removal:
Removing guy wires and pulling uprisers over plus cost of removal of debris less any salvage value.

B) Realize you may own the equipment in default of rent, if no chattel mortgage is on the equipment.
If a Chattel Mortgage is on it, the mortgage holder must rent from you or remove the equipment. You keep the deposit.

C) You may lease the equipment to another company.

D) You can ask for a deposit for the current Equipment Removal Estimate.
Have it adjusted periodically and paid under a hyperinflation clause.
Invest the deposit, on your own, in precious metals. This way you are double covered for hyperinflation!

Regarding a *bond* to insure removal costs, don't gamble on companies and banks not going bankrupt.
A deposit held by you is your best protection - you control the purse strings.

*Therefore,* if the tenant or other companies go bankrupt at anytime you are not harmed.
Remember, he who controls/writes the contract controls the deal.


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