The One Big Beautiful Bill Act (“OBBBA”) will have a significant impact on future of solar projects under development and the landowners leasing land to these projects due to the severely accelerated construction and operations deadlines imposed on solar project developments that are within the bill. Meeting these deadlines is required to remain eligible for clean electricity ITC (§48E) and Production Tax Credits (PTC, §45Y). This shorter timeline means that more and more solar project developments will not be financially feasible and as a result developers may decide to entirely abandon even late-stage development projects.
Considering the passage of this bill, landowners have several reasons to consider a lease buyout.
- Growing Policy Changes = Increased Landowner Lease Risks: OBBBA shows willingness to rapidly change federal renewable incentives. Your anticipated 20-50-year lease payments and royalties could underperform if policy shifts further.
- Options to Mitigate Risk: If you are looking to guarantee a payout from your lease this could be the ideal time to consider a lump sum cash buyout while lease buyer interest remains.
- Less developer risk: Some solar leases only pay if a project reaches commercial operation. A buyout eliminates project failure/delay risk.
- FEOC impact: If your project involves Chinese-made panels or inverters, it could lose tax credits entirely, making buyout offers disappear later.
The current situation regarding solar projects and renewable energy at large can be complex and uncertain. Landowners do not need to navigate it alone. MSE is a trusted resource and industry specialist. If you would like to discuss how to secure the highest value for your solar lease and receive clear guidance on the impact the OBBBA could have on your lease, please feel free to contact us at (312) 584‑0852 or via email at contact@madisonstreetenergy.com.
Disclaimer: This above noted statements contain certain personal understandings and opinions and have been prepared for informational purposes only. Moreover, the above noted information is not and should not be relied on as/ for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.