What is in this article?:
- Wind Wisdom | 5 Questions to Ask Before Signing a Wind-Energy Lease
- 2. How long will the lease tie up my land?
- 3. What are my obligations under the lease?
- 4. How will I be compensated?
- 5. What happens when the project ends?
- How to evaluate the wind-power developer
- Types of wind-power property agreements
- How a wind turbine could affect your farming operation
2. How long will the lease tie up my land?
Wind-power leases often last 50 years. The long lease period is necessary to give the developer time to earn a return on the huge up-front investment needed to build a wind farm.
The initial lease term is usually 25 years — the expected life of a turbine. Wind-power leases also include a renewal provision, extending the contract for another 20 or 25 years. The decision on whether to renew the lease is almost always the tenant’s exclusively, Ferrell says. “Landowners don’t have any say.” However, some leases may allow landowners to renegotiate the commercial terms at renewal time. “This is where collective bargaining is a very helpful tool.”
Wind leases will probably affect your estate plans, too, he adds, so it’s a good idea to include your heirs in the discussions.