Does My Land Qualify for a Wind Farm Lease?
- Craig Kaiser
- May 31, 2024
- 4 min read
Updated: 7 days ago
You may be looking to make additional income from your land on a renewable energy lease, but how do you know if your parcel has met land requirements for a wind farm? Landowners often wonder if their land qualifies for a wind lease. We go over some must-haves if you want to lease your land for wind turbines, as well as factors that make the land more attractive to energy investors, and therefore worth larger wind lease payments to the landowner. LandApp takes all of the factors we will discuss and more to determine your property's wind lease estimate in our free Property Report, or what your land could be worth if you lease it for wind turbines.
Wind Farm Land Requirements
Key land requirements for wind farm leases include sufficient acreage, close proximity to energy infrastructure, government incentives, and land quality.
Acreage Required for a Wind Farm
While there is no definitive answer to “How many acres do I need for a wind farm?", wind leases generally require a lot more acreage than other clean energy projects like EV charging stations and solar farms. Wind turbines take up a lot of space, and wind farms require turbines to be far apart to account for turbulence, meaning that developers are often looking to lease thousands of acres.
One wind turbine can require up to 80 acres of land, and each turbine will generate around 2.5 MW. Because wind turbines are spaced so far apart, surface activities like farming can still occur on much of the land. Depending on the specific lease agreement, you can still use much of your land during a wind lease.
Buildable Acreage and Exclusion Zones
Not all of your acreage will be suitable for adding a wind farm. Exclusion zones can be thought of as land that wind turbines and supporting equipment cannot be placed on or near for one reason or another. Many exclusion zones prohibit the installation of wind turbines:
Topography & Steep Slopes
Dwellings
Flood Zones
Waterways
Wilderness & Protected Areas
National Parks
State Parks
Hazardous Sites
NFS Land Units
Protected Grasslands
After removing these exclusion zones from your acreage, you are left with the “buildable acreage” suitable for a commercial wind farm. When you get a free LandApp Property Report, you can see how many acres of your land is suitable for wind turbines.
Power Grid Access
There are areas of the US that see constant, strong winds but are not located near any electrical infrastructure, and therefore are not viable locations for wind turbines. Distance from a transmission line has to be taken into account so the electricity harnessed from wind power can be distributed. Building a connection to the power grid in a remote area is very expensive, and therefore not an attractive option for most energy investors.
Similarly, wind companies also consider land's proximity to substations when they evaluate parcels of interest. Properties located within 4 miles of a substation or closer have a better chance of getting a wind lease offer than properties located further from a substation. The closer, the better! Wind energy developers will also be willing to pay more for land that is bordered by a road so that construction and maintenance crews can easily get their machinery in and out. It is important to remember that even if your land is not currently located in relevant electrical infrastructure, this does not mean that you can't receive wind lease offers. Electrical infrastructure and new technologies are constantly being developed to support new wind farm projects.
Quality of Land
When an energy developer needs to clear obstacles from the land, it costs more time and money. To compensate for this, they won’t be willing to pay as much to lease your land for a wind farm. Land for a wind lease will be worth more if it is clear of any obstructions to wind flow such as large structures. In addition, wind turbines are heavy, so the soil beneath them must be able to support their weight and cannot be too weak or soft.
Wind Power Incentivization
Policies that support wind power and other renewables vary from state to state, and even by county. In an area where renewable energy is more highly incentivized, your land will be worth more for a wind farm lease. It is important to note that these wind energy incentives are paid to the wind developer, not the landowner. For example, although there may be less open land on the East Coast as compared to the Midwest, land on the East Coast is very valuable for wind farm development because it is highly incentivized, and many East Coast states have set lofty renewable energy goals.
What Wind Developers Look For
As a property owner, it is crucial to have a comprehensive understanding of what wind energy developers seek when considering a lease for land. One of the key aspects they carefully evaluate is the wind resources available in the specific area. This entails ensuring that the wind speed falls within the range required to generate optimal power output.
Developers prioritize selecting land that is unobstructed by hills or buildings, as these can impede the flow of wind. Moreover, proximity to transmission lines is another crucial factor that developers take into account, as it helps to minimize the costs associated with energy transportation.
It is important to note that the size of the wind farm and wind resource availability determine the amount of acreage required. To generate a commercially viable amount of electricity, a minimum of 100 acres is typically needed. However, the size of the leased land can vary significantly depending on the number and size of the turbines, ranging from 100 acres to as much as 10,000 acres.
Developers usually enter into wind lease agreements with terms spanning 20 to 30 years, accompanied by an annual rent payment. This provides a stable and long-term partnership between the landowner and the developer, ensuring a mutually beneficial arrangement. Having proper road access to the leased land is crucial to facilitate the smooth delivery of equipment and machinery to the construction site, streamlining the installation process.
By considering these various factors, property owners can position themselves to attract wind energy developers and establish fruitful partnerships in the pursuit of sustainable power generation.
Does My Land Qualify for a Wind Lease?
Interested in learning if your land qualifies for a wind lease? Get a free LandApp property report and check out the wind energy value index scores to learn how much you could earn by leasing your land for a wind farm: