Caution urged on lending land for solar installations
Perth EMC / Amy Hogue / 18 February 2010
Since the FIT program's introduction in 2009, newspaper ads have appeared in local papers aimed at enticing rural landowners with large, open fields to lease these fields for staggering amounts - up to $12,000/acre/year. To put this in perspective, an acre of land can support approximately 1,500 - 100 watt solar modules, which will generate about $80,000 in gross annual income. Over a 20-year contract period, that's a total of $1.5 million.
But before signing over leasing rights to their land, landowners should be sure to carefully read the fine print. The generator, and not the resident, should be responsible for all maintenance pertaining to the installation, and the income offered should be guaranteed for the duration of the contract.
Bob Argue, of EcoPerth, cautions against blindly trusting lease corporations. "Some of them offer the $12,000 to get people interested, but in reality they're only offering five per cent of the profit."
Having a lawyer involved in the transaction, and looking closely at the leasing contract before signing can prevent any confusion about the landowner's financial return.
