Start with These 4 Questions Recommended by Renewable Energy Farmers of America
If you have hosted a wind farm, utility-scale solar array, or battery energy storage system (BESS) on your land for more than a few years, you are well aware of the steady stream of mail, calls, and solicitations that arrive on your porch. Landowners nationwide are frequently approached by developers and buyers with complex contracts, shifting numbers, and heavy industry jargon. It isn’t always easy to tell a fair offer from a predatory one.
Madison Street Energy (MSE) recently joined the Renewable Energy Farmers of America (REFA) as a Professional Sponsor to help agricultural families navigate major renewable energy decisions. REFA outlined four critical questions to consider before signing a lease buyout:
- What exactly am I selling?
Confirm whether the deal assigns future lease payments or involves a permanent easement. In a standard buyout, land ownership does not change—only the future income stream transfers, though landowners should carefully review all rights being transferred.
- How was the lump sum calculated?
A buyout converts decades of smaller installments into a single lump sum. Ask asset managers about their financial assumptions, including time value of money, project lifespan, and escalation clauses. MSE offers free, no-obligation lease valuations to help establish transparent benchmarks.
- What happens if the project changes?
Understand how repowering, expansions, or early decommissioning impact your deal. A strong buyout structure protects your upside while providing immediate financial certainty rather than waiting decades for developer payments.
- Who else should review this with me?
Because transfers are generally irreversible, consult independent professionals like CPAs, real estate attorneys, and REFA advocacy groups to align the choice with your family’s multi-generational goals.
You can find the full content of REFA’s article on their website and additional resources by contacting Madison Street Energy by phone at (312) 584-0852 or via email at contact@madisonstreetenergy.com.