Solar Farm and your Options

DFREL Realtors assist Virginia landowners in selling farms ideal for solar energy development and have helped families decide how best to market and evaluate land for solar farms, solar power leases, and solar facility projects that are planned or poised for construction. In today's land market, commercial solar energy potential can significantly impact the sale, price per acre & buyer's return on investment. With several renewable energy projects fully operational in Virginia, we continue to see varied opinions, valuations, and appraisals on farmland with income-producing renewable energy. Factors affecting these land values include the farm's location, soil quality, drainage, and the number of acres.

Frequently Asked Questions

How valuable is your Land?

Your land is more valuable if it is less than 5 degrees of slope, clear of trees, free of ponds, and bordered by a road. Solar developers will only build solar farms in regions that demand solar energy. The value of your land hinges on its highest revenue-generating use.

Solar Site Criteria & How It Works?

Community Solar: (usually 100 kW-5 MW) sell their electricity to utilities to reduce the electricity bills of subscribers.  
Acres Needed: Minimum of 20 acres of unencumbered land.  Maximum of 400 acres of unencumbered land.  The landowner is prepared to sign a minimum 15-year lease to a 20-year lease. As a qualified landowner, you will receive annual income for land that is currently non-productive. After the 15 to 20-year lease period has expired, the project can easily be removed, allowing the land to be preserved for future or resale.

Utility-Scale Solar: (generally 1 MW-2,000 MW) sell their electricity to profit from their owner.
Acres Needed: Minimum 400 acres of unencumbered land.  Maximum of 10,000 acres of unencumbered land.  Need to be within 3 miles radius of an existing substation.  Need to be within a mile of an existing transmission line.  The landowner is prepared to sign a minimum 30-year lease to a 35-year lease. As a qualified landowner, you will receive annual income for land that is currently non-productive. After the 30 to 35-year lease period has expired, the project can easily be removed, allowing the land to be preserved for future or resale.

Agrivoltaics: Uses the same area of land to produce more food while also rolling out more sources of renewable energy.
How does it work?: Planting crops under the solar panel arrays, the plant grow better and need less watering, while the panels produce more electricity. Depending on the size of the Agrivoltaic Solar Farm, it could be enough to power 300+ private homes. Underneath the Solar Panels, you can grow tomatoes, turnips, carrots, squash, beets, lettuce, kale, chard, pepper, and others. Depending on the species, you could see 100% to 300% more production, and the shade provided by the solar panels reduces the irrigation of water use. The crops are also protected from intense rain or hail from the overhead panels. 

How do I know if my land is suitable to host a solar farm?

We will assess the land and put together a proposed solar package ideal for solar energy development to help the landowners decide if their land is suitable for a solar project. Factors affecting these land values include the farm's location, soil quality, drainage, and the number of acres. If you would like to receive a free, in-depth site analysis with an estimated lease rate, send us an email to [email protected] and "Request free Site Analysis."

How will a solar farm affect property value?

Solar Developers with whom DFREL works are committed to developing projects that consider the area's character. They engage with professional appraisers in each state to evaluate any current or potential impact. There is considerable data that suggests solar farms have little to NO impact on nearby property values. A recently completed study from the University of Rhode Island found that suburban residential property values suffered negative impacts when nearby solar farms replaced resources perceived as scarce, such as green space. To learn more about the Solar's Impact on Rural Property Values, please visit: https://www.asfmra.org/blogs/asfmra-press/2021/02/16/solars-impact-on-land-values

How visible will the solar farm be?

Solar farms, based on the nature of their design, have a low profile, and the Solar Developers with whom DFREL works with, they make every effort to keep as much of the existing vegetation around the perimeter of the project as possible. They commit to seeking community input on how best to integrate the solar farm into the surrounding landscape. Once the solar farm is decommissioned at the end of a lease, they will leave the land clear for any future use determined by the landowner.

Is solar compatible with agriculture?

Yes. Solar energy in agriculture works for farm animals, crop cultivation, and pollination planting. In addition, solar farms are low-impact and can operate safely without impacting neighboring agricultural properties. DFREL has partnered up with several Solar Developers that develop solar farms on ground-mounted, installing panels on driven metal pilings. Standard ground-mounted arrays typically range in height between 8 - 20 feet high. During operation, the land rests and rebuilds, leaving soils aerated with new layers of topsoil. The pilings are removed at the end of the solar farm’s useful life, and the land is returned to its original state. Pole-mounted solar supports multiple panels on a single pole with a higher elevation. They can also incorporate a tracking system to tilt the panels automatically and follow the sun's path, increasing production by 25% on average and sometimes mor

What is a Solar Decommissioning Bond?

DFREL works with Solar Developers who are 100% responsible for the costs associated with the decommissioning of the site. A surety bond-a financial guarantee that ensures proper removal of the equipment and restoration of the environment to its pre-existing state will be in place. The decommission bond relieves the burden from the landowners and taxpayers and puts the responsibility of proper decommission on the Solar Project Owner. To learn about the Solar System Decommissioning, click on NREL-a Survey of Federal and State Level Solar System Decommissioning Policies in the United States.

Who handles the municipal permits and fees?

The Solar Developers' local, experienced team will handle any permits required, and the Solar Developers with whom DFREL works with, are responsible for any fees associated with those permits. To learn about the local solar permitting, please click on SEIA-Solar Energy Industries Association

How long does it take to develop and build a solar farm?

The timeline for development is different for every project and can last from two to multiple years. In order for a solar farm to reach construction, multiple internal and external processes and approvals must come together, including environmental studies, land use reviews, detailed technical designs, and utility approvals. Federal and state-level policy decisions also affect our project development timelines. Once the construction process of your solar farm begins, we estimate the build phase to take between two to 12 months, depending on the size of the project. To learn about the Development Timeline for Utility-Scale Solar Power, click on SEIA-Solar Energy Industries Association Development Timeline

What happens after the lease expires?

The solar panels have an estimated useful life of up to 35 years. However, contracts to sell solar energy typically don’t exceed 20 or 25 years, so the lease term usually is less. The solar farm will be decommissioned when the lease expires, and the land will return to you. Or depending on both parties, the lease could be extended if there’s continued market demand for the power. The panels and other equipment might be upgraded, depending on the solar technology by then.

What if I want to carve out a portion of my land for the Solar Farm?

The solar developers DFREL partner with are willing to carve out a portion of a project area to accommodate structures the landowner want to remain or continue to live in. The Solar Developers may also be willing, at their expense, demolish and remove smaller structures that the landowner no longer use, such as a barn or shed.

Will there be a fence around the solar farm?

Yes, the entire facility will be fenced for security and liability purposes.

What benefits do utility-scale solar projects bring to the community?

Solar projects are sited on land that generates relatively little tax revenue. Therefore, the use change provides the locality with a new higher tax revenue source. Additionally, solar projects utilize minimal public infrastructure (water, sewer, police, etc.) relative to commercial or residential development, so the cost to the locality is meager. Utility-scale solar projects create local construction jobs and increase business for local services such as hotels and restaurants. The solar projects also create a small number of long-term employment for vegetation management and Operations and Maintenance of the facility.

Can the solar farm power the house on my property?

Unfortunately, no. The solar farm must be connected to the electrical grid at a much higher voltage than your house uses.

DF Real Estate & Land Resources 

Solar Host Sign-Up

We work with the landowner and neighboring landowners to develop contiguous acreage blocks to create a solar farm. We provide our clients with expertise in marketing and negotiating their solar lease or selling their land to the solar company. We have extensive experience in providing landowners with options for maximizing their property's use and financial income. Before you sign any lease or purchase with a solar company, contact us  to discuss your options on how to earn revenue by hosting a Community Solar Project or a Large Scale Solar project at your site. Click on "Solar Host Sign-Up." 

Solar Host Sing-up