Anybody have experience with solar farms? I'm trying to figure out pricing for an existing 20 acre solar farm < 20 years on the lease, and an adjacent 50 acre vacant parcel in Hawaii.
I'm trying to understand a few things: All this assumes contract pricing with a state Elec. Co.
1) What is the market pricing for existing leases >20 years, and <20 years? As in priced like a NNN lease / going in cap rate. Either to buy the land fee outright or just the leasehold for 20-30 years?
2) How do developer's price the land / what yield are they looking for?
I've learned that the developers will tie up the land for 3-5 years with options to setup the solar deal operator, and have option to purchase fee, then flip to a yield buyer.
Anybody have rule of thumb costs for development/acre?
Thanks in advance!
Hi RE Dude, any of these topics helpful:
More suggestions...
Hope that helps.
Need a little more clarity on the request here - are you asking how to value the solar farm (project)? If I’m following your question, you’re looking at this from the wrong angle; acreage isn’t the most useful measure of solar project scale and value - nameplate AC (and DC) capacity in MWs is. A 50 acre solar farm could be anywhere from 2-5 MW - and then one would need to know the PPA pricing. Using those + some other assumptions, one could get an idea of what the project value is.
You’re right about the developer’s approach - if they’re interested in purchasing the land vs. leasing. Some solar developers have a preference, but the optimality of one over the other is situational. If looking to purchase solar, then yes, you’re looking to secure the ground via options while you work towards grid interconnection, local engagement, permitting, etc.
In days past the “pure play” developer was quite common, but these days the major renewable developers develop and own/operate. That said, smaller shops still exist, and often sell shovel-ready projects to larger developers for dev fees on a per MW basis.
My sense is that I didn’t provide much of answer - let me know how else I can help.
Source: development manager at major renewable development co
Nihil minus omnis neque aut exercitationem. In sed et rem. Voluptatem atque dolore cum rerum aut quaerat. Provident aperiam et id illo iure excepturi. Illum eveniet veritatis labore cupiditate pariatur iste nihil. Quae maiores odit quod ullam.
Magnam commodi enim velit quia dolorem distinctio. Et qui sed voluptatibus est.
Expedita quibusdam velit qui consequatur. Perferendis vitae dolorum quaerat aut. Repellat aspernatur quos dolores vitae ipsum. Tempore assumenda voluptatum non corporis blanditiis totam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Veniam odio consequuntur sint eos et veniam. Id unde sed quia tenetur enim. Distinctio dolorum velit et. Fugiat veritatis officia tenetur illo ut ut. Reprehenderit laboriosam aut laboriosam quos neque esse. Dolore laboriosam deleniti cum vitae cumque distinctio. Temporibus iure maiores aliquam facilis ut dolores sunt.
Qui doloremque quisquam velit. Officiis est odio odit ea eligendi distinctio. Dolore corporis et qui voluptate. Corporis earum ut laudantium perspiciatis quis.
Corporis voluptas ut praesentium et quia facilis laborum. Nam quaerat inventore veritatis. Dolorem ut voluptate qui excepturi optio. Sint est dolorem non et.
Consequuntur consequuntur inventore animi accusamus. Eos quia mollitia omnis aliquid. Voluptatibus veniam nesciunt velit vero consequatur voluptatem. Natus reiciendis sapiente blanditiis.