Solar lease rates
Solar farm lease rates by state
This table gives farmland owners a planning range for solar lease rates per acre before they respond to a developer. The important caveat comes first: State-level modeled bands ($/acre/year), not local lease comps. Operating-phase payments only; option-period payments are much lower. A band tells you whether an option is worth pursuing and at roughly what scale, never what a single developer will quote.
State-level bands, not local comps
AgriTerra's solar bands are modeled from named source anchors, including Purdue Ag Economy Barometer solar-offer survey distributions and Ohio State University solar-leasing guidance. They are not county recorder comps, and they are not a promise that a developer will pay the midpoint.
The table is still useful because it gives you a sober reference point. In the Corn Belt states bundled here, typical-output midpoints run Illinois $1,025, Indiana $1,000, Iowa $1,000, Kansas $1,000, Ohio $1,000. If your offer is far outside the relevant state band, ask why. The answer may be grid access, project vintage, county policy, competing land, or contract risk.
| State | Lower-output band | Typical-output band | Higher-output band |
|---|---|---|---|
| California | $1,100-$1,650 (mid $1,350) | $1,325-$1,950 (mid $1,600) | $1,550-$2,200 (mid $1,850) |
| Arizona | $825-$1,225 (mid $1,000) | $1,000-$1,450 (mid $1,200) | $1,175-$1,675 (mid $1,400) |
| New York | $800-$1,225 (mid $1,000) | $975-$1,475 (mid $1,200) | $1,150-$1,700 (mid $1,400) |
| Florida | $725-$1,100 (mid $900) | $900-$1,325 (mid $1,100) | $1,075-$1,550 (mid $1,300) |
| New Mexico | $725-$1,100 (mid $900) | $900-$1,350 (mid $1,100) | $1,075-$1,575 (mid $1,300) |
| Texas | $725-$1,100 (mid $900) | $900-$1,325 (mid $1,100) | $1,075-$1,550 (mid $1,300) |
| Colorado | $700-$1,075 (mid $875) | $850-$1,275 (mid $1,050) | $1,000-$1,475 (mid $1,225) |
| Illinois | $675-$1,050 (mid $850) | $825-$1,250 (mid $1,025) | $1,000-$1,500 (mid $1,225) |
| Indiana | $650-$1,025 (mid $825) | $800-$1,225 (mid $1,000) | $975-$1,475 (mid $1,200) |
| Iowa | $650-$1,025 (mid $825) | $800-$1,225 (mid $1,000) | $950-$1,425 (mid $1,175) |
| Kansas | $650-$1,025 (mid $825) | $800-$1,225 (mid $1,000) | $950-$1,425 (mid $1,175) |
| Ohio | $625-$1,000 (mid $800) | $800-$1,225 (mid $1,000) | $975-$1,475 (mid $1,200) |
Sorted by typical-output midpoint. Each cell shows the p25-p75 span and midpoint for operating-phase payments. These are state-level modeled bands, not local lease comps.
Why your actual offer can differ
The solar resource matters, which is why AgriTerra uses NREL PVWatts v8 to bucket the parcel's modeled output. But the grid usually decides whether the offer is real. We measure distance to 69 kV or higher transmission using the HIFLD Electric Power Transmission Lines layer, then combine that with queue and policy checks. A parcel inside a strong state band can still be weak if it is far from a usable point of interconnection.
Contract wording also changes the dollars. The option payment may be only a fraction of the operating lease. The operating lease may pay only on fenced project acres. Escalators, assignment rights, decommissioning security, property-tax reimbursement, and drainage repair obligations can make two offers with the same headline rate very different deals.
Use the table with the full guide
The state table answers the rate question. The broader solar leasing guide covers option periods, lease terms, viability, and questions to ask before signing. To compare a lease offer against crop income and CRP on the same acres, use the farm vs. solar vs. CRP calculator. To see how every figure is labeled, read how we get our numbers.
Solar lease rates: frequently asked questions
- What state has the highest solar farm lease rates?
- California has the highest typical-output midpoint in AgriTerra's bundled state table at $1,600 per acre per year. That is a modeled state band, not a local comp, and a weaker grid position can still make a high-resource parcel hard to lease.
- Are solar lease rates per acre the same as option payments?
- No. Option-period payments are usually much lower because the developer is only reserving the right to study the land. The table shows operating-phase lease bands, the payments that matter if the project is built and producing power.
- Do solar companies pay for every acre on the parcel?
- Not always. A lease may option the whole tax parcel but pay operating rent only on the acres inside the project footprint, plus separate terms for access roads, underground collection lines, buffer areas, or easements. Read the acreage definition before comparing offers.
- Can I use this table to negotiate a solar lease?
- Use it as a starting range and a check against an offer, not as a demand. Your local comps, project vintage, interconnection position, tax treatment, and contract risk matter as much as the state midpoint.
Compare solar against the other real choices.
Run farming, solar, and CRP side by side before you treat a lease rate as the answer.