Feed-In Tariff Solar Program
Questions & Answers
Lessor Property Owner will receive $12.00 per kW of solar.
Examples: 1.0 mega watt =1,000 kW
1.5 Mw = $12 X 1500 KW = $18,000 (minimum)
3.0 Mw = $36,000
6.0 Mw = $72,000
12.0 Mw = $144,000
21.0 Mw = $252,000
What is the requirement to provide station power to the PPA Solar Project? How much will it cost and if that cost can be included in the lease payment?
This is actually a rare possibility, since for FIT projects the Station Power will be provided by the utility. See "Site Lease" with language stating these costs, if any, will be reimbursed to the landowner.
What is the requirement to provide security and what does that include? Would the landowner be required to provide a fence or some type of security system?
We actually include a fence around the property and video surveillance as part of our project costs, so the landowner is only required to take reasonable & customary security precautions that they would take for any other buildings or equipment they have on the property. There are no specific requirements. The language in the site lease has been adjusted to clarify that, too.
When exactly does the Lessor begin receiving payments for rent? Do payments begin when the solar system PPA goes into operation or is it after the first year of operation?
One month in arrears after the PPA goes into operation and begins receiving payments from the utility.
Why do you need 300,000 square feet(7 acres) for solar panels on rooftops and land property for 1.5mw FIT program, when 1.5 mW =1,500 kw x 100 sq ft (per kW) = 150,000 sq ft of solar?
This does not take into account tilting the arrays for greater output and the setback of the tilted arrays for shading mitigation. If it’s on a rooftop there are additional setbacks for fire lanes around the perimeter of the roof, skylights, HVAC equipment, avoiding shading from trees, and other unusable space on the roof or land.
300,000 square feet is probably more than what is needed, but we're being conservative. Looks like a factor of 50% of actual rooftop space is being used for the total amount of installed solar on the site lease properties. We may need 300,000 sq ft to get 200,000 sq ft usable land property.
How many acres required? Minimum and maximum?
Minimum 4 acres, maximum 200 acres.
What about setbacks? Front, rear and side?
Depends on county, but usually 20’ to 100’, with 500’ in some rare cases.
What about leased property?
Yes, that’s OK as long as the lease is 20 years or more.
What about liens? 1st, 2nd & 3rd lien allowed?
OK as long as the equity in the property after all liens exceed at least 30% of the project cost.
What does the land or rooftop owners have to do to qualify for the Feed-In Tariff Solar Program?
Sign the site lease!
Is the $12.00 based on design or actual kW production?
Based on name plate installed capacity DC.
Are there any land restrictions?
environmentally sensitive land would be problematic (examples include land hosting any endangered or threatened species of any kind, rap tor nesting grounds, waterfowl breeding grounds, Native American burial site or other sacred site, etc.)
What kind of power does the land need, 1 Phase, 3 Phase?
Either is fine, but 3 phase is generally better.
What a about the Williamson Act?
Yes, in many cases, but it varies by county and size of the property relative to the solar project. Small 1.5 MW projects on about 300,000 square feet (7 acres) relative to a 160 acre quarter section would likely be allowed in most cases.
What are the Flood zone qualifications?
B (100 year) and C (500 year) flood zones should be acceptable, but not most A zones.
What will be the typical proposed lease payment schedule to the lessor once the system is in operation?
How long is the term of the Site lease?
20 Years. Coincides with a 20 years PPA, with an option to renew for 5 years after conclusion of the PPA. It is dependent on the term of the PPA.
What will be a typical PPA term be for the fit?
What is an approx time line from signing of site lease agreement to shovel ready?
The time is unknown, due to widely varying requirements of counties for permits. 6-18 months is a reasonable time frame. The same is to completion and a 10mw system.
Is there any further obligations necessary from the Lessor the Lessee other then the site lease agreement?
Feed‐In‐Tariff Solar Program. Not at this time, although the lender may ask for a copy of the property insurance and to be named as an additional named insured.
Is there an option for the Lessor to purchase the Feed-In Tariff Solar system at the end of the term (similar to regular client PPA agreements)?
No, not at this time since it’s a FIT program and the utility needs the developer to maintain control. It’s possible that after 20 years the utility would allow us to sell it to the Lessor, but we just cannot predict what position the utility will take 20 years from now.
We have one project that has 3 adjoining parcels, the owner would like to reserve one acre on each parcel for future farm homes. How do you go about adding this language into the site lease agreement?
Simply include that language in the description of the Premises in the exhibit, and describe the legal description and/or location (example: except for the northwestern-most corner of the property) of the excluded one acre on each parcel.
How far can the electric power pole be from the solar array?
The solar array must be within 1500 feet from the electric power pole station.
If you have any other additional questions please feel to contact us. Our company is based on the belief that our customers' needs are of the utmost importance. Our entire team is committed to meeting those needs. As a result, a high percentage of our business is from repeat customers and referrals.
We would welcome the opportunity to earn your trust and deliver you the best service in the clean renewable industry.
Please fill out form below for more information on our Feed-In Tariff Solar Compensation Program:
Clean Energy Funding Solutions