Solar Lease Revenue Calculator

Solar farm ground leases provide passive income with 25–35 year terms.

Acres

Per acre annual rent

Escalator %

Term years

Year 1 revenue

$180,000

Lifetime revenue

$7,302,254

Year 30 revenue

$319,652

How the math works

Year 1 = acres × per-acre. Lifetime = sum of year × (1 + escalator)^year.

150 × $1,200 = $180k/yr year 1. 30 yr at 2% escalator = $7.31M lifetime.

How to Use

Enter acres.
Enter per acre annual rent.
Enter escalator %.
Enter term years.
Read year 1 revenue.

Frequently Asked Questions

Solar lease economics?

Per acre: $400–2,500/yr typical. Major drivers: distance from substation, terrain, sun, regulatory. Best markets: TX, CA, AZ, NV, NC, FL. Lease term: 25–35 years standard. Escalator: 1–3%/yr typical. Bonus payment at lease execution: $0–500/acre. Construction lease (during build): often higher rate. Decommissioning bond: required by many states. Easement land use: cannot farm, graze (sometimes possible), other commercial use during lease. Average solar farm: 5 acres per MW DC capacity.

How does this asset class compare to traditional CRE?

Specialty assets (self-storage, RV parks, MHP, marinas, cold storage, data centers, parking, car wash, QSR/c-store, billboards, cell towers) typically offer higher cap rates than office/retail but with more operational complexity. They reward specialized operators with deep market knowledge. Lender pool is narrower, capital costs sometimes 50–150 bps higher, but downside resilience often better.

Capex and operational considerations?

Specialty assets often have heavier operational burden than passive triple-net retail. Self-storage, RV, MHP: tenant turn, security, basic upkeep. Marinas, parking, car wash: equipment-heavy with replacement reserves. Cold storage, data center: utilities are major cost. Billboards, cell towers: minimal opex, near-passive. Match management capacity to asset operational intensity.

Exit strategy?

Specialty asset cap rates have compressed significantly over last cycle but volatility is real. Buyers: REITs, private equity rollups, regional operators, 1031 buyers. Strong NOI history, environmental clarity (especially for car wash, gas station), and lease structure (for billboards, cell towers) drive valuation. Plan exit 24+ months in advance for best execution.