Landowners that host renewable energy projects on their land (solar, wind or battery storage) have options to structure any transaction that involves their land and their lease payments. Each structure has different benefits, potential tax treatments and future options for the landowner. Madison Street Energy (MSE) can work with you to determine which transaction structure is the most beneficial to you.
Landowners can sell the land outright, which often is the most lucrative for them, and which often has favorable tax treatment v. other types of transactions. MSE as purchaser would have all future tax and insurance obligations, as well as the risk that future uses of the land would not be as valuable as the renewable facility if the applicable renewable energy lease is not extended or renewed.
Another option for landowners would be a sale of the rights to receive rent from the lessee renewable energy project. This option has several different ways in which it can be implemented, each with its own tax and other implications. Some landowners prefer this structure as it allows for the receipt of a large up-front payment from MSE, but still allows the landowner to pass on the land to their children and grandchildren.
Yet another option would be for the landowner to sell the land to MSE, but negotiate a right to buy-back the land after the passage of a specified amount of time or happening of specified events. This transaction allows for potentially favorable tax treatment of the proceeds but also provides the landowner with potential to take advantage of future appreciation in value of the land.
MSE is happy to discuss these options with you regarding your land.
About Madison Street Energy
MSE is a renewable energy company focused on acquiring renewable energy land leases. MSE works with project developers to purchase and lease back project real estate and with landowners to purchase land or monetize lease payments. MSE is committed to sustainability, innovation, and supporting the transition to a greener future. For more information, please contact MSE by phone at (312) 584-0852 or via email at contact@madisonstreetenery.com.
