Welcome back to the second part of our series on solar leases. As a renewable energy attorney, I’m committed to helping landowners navigate solar lease agreements while mitigating risks and ensuring fairness. In this blog, we’ll continue our exploration of essential considerations for landowners interested in solar energy projects.
Understanding Termination and Cleanup Obligations
Solar lease agreements often have asymmetrical termination provisions, giving developers more flexibility than landowners. Landowners should seek to balance this by negotiating termination rights and robust cleanup obligations for developers. Ensuring developers are responsible for cleanup and restoration post-construction is essential for protecting the landowner’s property.
Addressing Disputes and Ensuring Fairness
Planning for potential disputes is critical for protecting landowner interests in solar leases. Landowners should review dispute resolution mechanisms and ensure they have adequate recourse in case of disagreements. Removing provisions that waive rights to a jury trial or appeal arbitration awards can help ensure fairness in dispute resolution processes.
Conclusion
Solar lease agreements offer landowners a valuable opportunity to diversify income streams and contribute to renewable energy initiatives. However, navigating these agreements requires careful consideration and negotiation. By understanding the structure of solar leases, performing due diligence on developers, negotiating compensation and rights, and mitigating risks through termination provisions and dispute resolution mechanisms, landowners can protect their interests and maximize benefits in solar energy projects.