Are Solar Farms the Next Big Land Development Boom?

 Posted on December 00, 0000 in Commercial Real Estate

To be successful as a commercial land developer, one must know how to recognize trends. A dose of creativity helps too, but it is trends – or the possibility of them – that can make or break you. Based on all the new solar farms going up around Will County, it is easy to assume that they will be the next big land development boom. Is this assumption correct? What are the potential risks of getting into solar farm development? The following explains, and it provides you with details on finding assistance with your land development project.

Farmers Trading in Their Crops for Solar

Farming is a respectable profession – one that takes a lot of hard work and dedication. It also does not pay very well, which is why some farmers are eager to turn their farm land (or at least some of the unused portions) into money-making solar farms. The impact to the land and surrounding area is minimal, and farmers who convert their land stand to make four times as much with solar as they would with crops. Solar farms also give back to the community (including schools), and they decrease our reliance on fossil fuels.

Land Developers and Solar Farms

Although the companies are contacting mostly farmers about converting their land into a place for solar power, land developers stand to benefit as well. Say, for example, you find a patch of land that at a steal (possibly because it has limitations on its use or zoning, or because it is not in a prime location) of a price. If you were to use it for a shopping center or small community, you may lose out on money. If, however, you turned that land into a place for solar power, you could make money from it, every single month.

Factors to Consider Before Making an Investment

In an article from the Chicago Tribune, it was revealed that solar farm owners stand to make about $800 per acre of converted land. Though this amount might be great for areas that might not pull a profit any other way, it may not be the best use of all land parcels. There has also been a lack of interest in the community, which could cut this land development boom short. However, some experts believe that the lack of support is only temporary; perhaps the message has not reached enough people just yet. In either case, land developers should weigh their options carefully before leasing a parcel for solar power.

Our Naperville Real Estate Lawyers Can Help

As with any land development project, it is advised that you conduct your due diligence prior to purchasing. Lindell & Tessitore, P.C. can help with this process. We can also advise you on the potential risks and benefits of leasing your land for a solar farm. Seasoned and experienced, our Naperville real estate lawyers will protect your interests at every turn. Get started by scheduling a personalized consultation. Call 630-778-3818 today.

Source:

http://www.chicagotribune.com/suburbs/daily-southtown/news/ct-sta-will-solar-farms-st-0903-20170901-story.html