takes the form of a “right of first refusal.
” If
Leasing your land for
solar power? Know
your rights before you
sign.
By Steven J. Getman
Schuyler County Attorney
(special thanks to Mark Taylor for his assistance and input)
Solar power can offer New Yorkers many
potential benefits, including saving money
through reduced electricity bills, creating
stability during periods of electric rate
changes and contributing to a cleaner and
healthier community by reducing our carbon
footprint. With more and more state
residents considering solar power, a number
of private companies are looking to develop
and initiate construction of new solar projects
across the state, including in Schuyler
County.
Recently, a number of Schuyler County
landowners have reported receiving
proposals from one or more energy firms,
seeking land for solar facility
development. These proposals offer
landowners money for an option to lease or
purchase land to develop, build and operate
a solar power generation and storage facility
on the premises. Payments may include an
option signing bonus, annual option
payments and potential annual lease
payments. In some cases, payments may net
landowners thousands of dollars.
While the terms of these options may seem
very attractive, these agreements are legal
documents with potential long-term
implications, potentially both positive and
negative. Therefore, you should proceed
carefully before signing them.
An option is an exclusive privilege to lease,
sell or to buy certain property at a specific
price and within a stipulated time. It often
the option is supported by some type of
consideration, such as a cash payment or
promise to pay, it becomes an irrevocable
and enforceable contract for the specified
time period. A lease in this case is a legal
document or contract between a landowner
(lessor) and a company or individual (lessee)
granting that lessee development and
construction rights to the landowner’s
property.
Companies will often present the landowner
with a preprinted or standard option
agreement, followed by a standard
lease. Before signing the option and/or any
subsequent lease, you should carefully
consider various issues, including:
• Interference with existing land uses. The
installation and construction of the
facility may involve a large amount of
equipment similar to other
construction projects. Be sure that
you know how much of your land and
which parts of it will be used for access
construction and maintenance.
• Possible land disturbance, including to any
adjoining property. Have mutually
approved reclamation plans
incorporated into any lease,
including the possibility of a bond for
remediation of the land. Determine
how close to the property lines the
land might be developed.
• Damage to real and personal property.
Explore whether the option and lease
can be written to require fences or
other safeguards if needed to protect
people, buildings, crops and animals.
If not covered in the lease, consider
asking for terms that make the
company responsible for damage.
• Lease assignment. Determine whether
the lease contains a clause which
allows the company to assign or sell
the lease to other entities. With all the
 changes in hands, it would be very NYSBA Lawyer Referral and Information
easy to lose track of who is responsible Service: https://www.findalawyernys.org.
for end of life remediation.
• Tax issues. Consider who will be Leasing and real estate options for solar
responsible for any increases in energy can provide you with revenue, but you
property tax on the value of the land should also make sure your interests and
with the panels. Check the income tax property are protected. Proceed carefully,
consequences of the various key stages consult a trusted attorney and, when possible,
in the life of the option. earn money while helping to promote
• Long term effects on the property’s renewable energy.
title. While entering into an option
does not necessarily mean a solar *****30****
facility will be constructed on your
property, it is important to remember
that signing an option and/or lease
means granting a right to others
which may be viewed as an
encumbrance on the
property. Twenty years would be the
lifetime of a typical solar installation
option.
• Zoning and land use regulations. Check
whether your town or village has
zoning or land use laws that might
affect the use of the property for solar
or other forms of alternative
energy. If so, confirm who will be
responsible for securing any necessary
permits or permissions.

Like most municipalities in New York,

Schuyler County does not regulate private
agreements between landowners and solar
energy operators. Therefore, property
owners should review any documentation
very carefully and consult an experienced
attorney before signing any type of
agreement. Your attorney may advise you to
negotiate changes to meet your needs and
protect your interests before you sign
it. Make sure to have your lawyer get all
promises and conditions in writing.

If you do not have an attorney, the New York

State Bar Association may be able to refer
you to an appropriate attorney via the