Landowners: Know the facts before signing a solar project lease
If you’re a landowner in rural Iowa, you may have received solicitations in the mail offering land lease options for proposed solar projects. Often, these letters offer attractive per-acre rental payments for various phases of a long-term proposed project, promising steady and predictable income. However, like with all contracts, the devil is in the details. Before signing an agreement, we encourage you to do some homework and seek legal counsel to protect your rights.
Most of these letters are coming from companies outside of Iowa looking to lease land for future solar projects. We have noticed that many of these letters refer erroneously to Iowa law; referencing legislation (Senate File 2356) that did not pass last session. In fact, Iowa’s electric cooperatives and other groups registered in opposition to the legislation due to its likely negative impact on electric co-ops and our members.
Some solicitations falsely claim local support for their solar initiative or that the electric output would somehow benefit your neighbors or the local electric cooperative. We have also seen letters that deceptively include endorsements attributed to the Iowa Farm Bureau. IFB’s legal team is working to remove these perceived endorsements.
Please consult your legal counsel before signing any agreement or contract. Your legal counsel can help explain the benefits and disadvantages of these agreements, answer any questions you have, and help negotiate fair and equitable terms. These are long-term agreements that can give the solar company exclusive options and control of your land for decades. Spending some extra time up front to better understand the terms and conditions of the proposed agreement can save you significant time, money and headaches in the future.
Notice: Iowa Code 476.6A Alternate energy production facilities-notification requirements:
1. On and after January 1, 2013, the owner of an alternate energy production facility, as defined in section 476.42, which when constructed or installed will be attached to an electric transmission or distribution line or attached to equipment which is attached to an electric transmission or distribution line, who has not entered into a power purchase agreement with a public utility, shall be subject to the notification requirements of subsection 2. 2. No later than thirty days prior to commencement of the construction or installation of an alternate energy production facility as described in subsection 1, the owner of the facility shall provide written notice to the public utility within whose service territory the facility is to be located of the owner’s intent to construct or install the facility, the type of facility to be constructed or installed, and the date that the facility is anticipated to commence operation.