Although the majority of sites developed by Bear Peak are successful and ultimately constructed, for a variety of reasons out of our control, some sites do not end up moving forward. Entering into an option to lease allows Bear Peak to begin the development process; applying for connection to utilities, local permitting, and engineering work is started quickly after we enter an agreement. As soon as Bear Peak receives all necessary approvals, the landowner will be notified that the project will be moving forward and the formal lease period and construction of the solar facility can begin. In the event that Bear Peak is not successful, the landowner will also be notified and may keep all funds paid to them to that point. Signing an option instead of a full lease initially keeps legal costs low on both sides to more fully determine whether a project is viable and be ready to proceed, while fairly compensating the landowner for giving Bear Peak the opportunity to quickly pursue their property’s development.

While specific lease rates vary by state and specifics of a property, landowners will typically make much more per acre under a solar lease than for agricultural uses. Once a project is fully developed and constructed, it provides a reliable revenue stream for over two decades.

A typical solar lease is 25 years long with additional options for extensions if the facility is still performing well and able to stay operational.

Once the lease term ends, a solar facility is taken away and the land is reclaimed all the way to its previous condition (or better!). Many crop-producing properties greatly benefit from lying fallow for this period of time and can quickly return to production. Financial assurances and bonds are put into place to ensure that the site is properly deconstructed and reclaimed. In some situations, Bear Peak may desire to negotiate a new lease agreement when approaching the end of a lease term, extending the life (and revenue to the owner) of the existing facility.

Land suitable for a solar farm or energy storage project should have several key characteristics. First, the land should be relatively flat, with a slope of no more than 7%. This is because solar panels need to be mounted at an angle to maximize their exposure to sunlight, and steep slopes can make this difficult. Second, the land should ideally be free of obstructions, such as trees, buildings, power lines, or pipelines. Third, the land should be located near an existing substation and have direct access to either a three-phase distribution or a sub-transmission/transmission line.