Written by: Leonard Parker | Solar News | 17th May
Solar real estate investment fund SolaREIT is introducing a Pre-Paid Lease for solar developers to provide landowners with up-front payment for up to 30-years of lease payments. With SolaREIT’s Pre-Paid Lease, landowners can pull forward 10 to 30 years of payments. The new option expands the choices for financing real estate holdings for both developers and landowners to speed solar development.
“Every solar deal is different, and our industry needs expanded land financing solutions to fit the diverse needs of our partners. With our Pre-Paid Lease, landowners now have a wider range of ways to be compensated,” said Laura Pagliarulo, President of SolaREIT. “Expanding financial options to solar developers and landowners is an important part of delivering more solar deals and more clean power.”
“We needed capital for a landfill we were purchasing to build a solar project, and SolaREIT offered to pre-pay the lease,” says Jim Bodecker, Co-Founder of National Energy Development. “After speaking with other funds, we chose SolaREIT because of their competitive offer and streamlined process, allowing the deal to close smoothly. This landfill project is the first of many projects between our organizations.”
Solar is a land-intensive technology; the National Renewable Energy Laboratory estimates that solar panels will cover 3 million acres by 2030. The majority of solar projects are on leased property, and the Prepaid Lease allows landowners to maintain ownership of their land while getting paid upfront for the use of their property for solar. Flexible financing solutions such as SolaREIT’s Pre-Paid Lease can reduce the operating costs for projects and expand the number of landowners open to hosting solar projects.