How Should I Handle Leases on Vacant Land for Windmills or Solar Power When Selling?
- LeNae Schwickerath
- Dec 8
- 3 min read
You've got vacant land with an energy leased solar panels or wind turbines generating steady income. Even folks with solar panels on your home or other buildings but now you want to sell, and suddenly things feel complicated. Does the lease make your land more valuable or harder to sell?
I've worked with plenty of landowners in this situation, and the answer depends on the lease terms, what's built, and what kind of buyer you're targeting.
Let's break down what matters.
Know Your Lease Inside and Out
Pull out that lease agreement and understand the key details. How long does it run? What are the payment terms, fixed amounts or based on production? Can it be transferred to a new owner? What happens when it ends?
If the terms are confusing, talk to a real estate attorney before listing. You can't sell something if you don't understand what you're actually selling.
The Upside: Income Appeals to Investors
Here's the good news, land with an established energy lease can be really attractive to certain buyers, especially investors.
They're buying property that pays them monthly without any work. No crops to manage, no tenants to deal with. The energy company handles everything, and the checks arrive automatically. For buyers viewing land as an investment rather than personal use, that's appealing.
If your lease has good terms strong payments, reputable company, years remaining, it can actually increase your land's value. You're selling an income stream, not just dirt.
The Challenge: It Limits Use
That same lease that attracts investors can turn away other buyers. Someone wanting to build a home doesn't want wind turbines nearby. A farmer might not want solar panels covering good soil. Developers looking at future residential projects won't want long-term energy infrastructure in the way.
Your lease restricts what the new owner can do. This doesn't mean you can't sell it means you're working with a smaller buyer pool. You need someone whose plans work with that lease in place.
Be Completely Transparent
When you list the property, honesty is critical. Make sure your listing clearly mentions the energy lease. Include key details such as lease term, income amount, company name, what's on the land.
Provide lease copies to serious buyers early. Let them review it with their attorney before they get invested. Be upfront about any limitations or requirements. Buyers will discover issues eventually, and late surprises usually mean they walk.
Understand the Value
If you're getting $10,000 annually for 30 years, that's $300,000 total. But buyers don't value it that way. They'll discount future payments based on risk. Realistically, they might value that income at $150,000 to $200,000, sometimes less.
Figure out what your land would be worth without the lease, then what the lease income adds. Sometimes it's a significant increase. Other times, especially if it limits development, it might actually decrease value compared to unrestricted land.
Target the Right Buyers
Investors and farmers often like energy leases. They understand the income and aren't
bothered by equipment. Residential buyers or developers usually don't they see restrictions.
You might need to market specifically to investors. Work with brokers who specialize in income producing land, or list where investors look for properties.
Summing It Up
Selling land with an energy lease isn't necessarily harder, it's just different. The lease will attract some buyers and eliminate others. Your job is to understand the terms, be transparent, and find the right buyer who sees value in what you're offering.
Don't hide the lease or downplay its impact. If it's a strong income producer, market it that way. If it limits uses, acknowledge that but emphasize what's still possible.
Get professional help. A real estate attorney familiar with energy leases and an agent who's handled similar properties can prevent costly mistakes. Your land might take longer to sell, or it might go quickly to the right investor. Either way, handling the lease properly makes all the difference!
Let's chat if you are starting the process of selling and get you on the right path!
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