Whose Buying Wind Royalties & Solar Leases And Why Knowing Their Background Matters?

April 21, 2021

Due to the infancy of the renewables industry, the number of companies that buy rights to future wind royalties and expected solar lease rental proceeds (Wind Royalties & Solar Leases) is relatively small.

That being said, a significant number of the companies that approach landowners about buying Wind Royalties & Solar Leases actually have little to no experience working in the wind or solar industries.

Instead, these companies are essentially offshoots or newly created affiliates of pre-existing companies whose main business has been working on the acquisition of oil and gas mineral rights, cell phone towers, or outdoor billboard leases.

While there is nothing inherently wrong with companies expanding into new industries, it is difficult to imagine that many people would want to volunteer to use their land, leases, and finances as test cases as these companies learn the intricacies and general market terms involved in wind and solar leases.

Moreover, there is a common misconception that the terms, conditions, and economics of wind and solar leases are similar to or the same as those found in oil, gas, cell tower, and/or billboard leases. As a result, companies acting on this mistaken belief who enter into discussions with landowners are likely to end up wasting everyone’s time since their expectations from the very start do not align with the type of agreement wind and solar landowners may want to accept.

As a result, before spending too much time with companies that are interested in buying your wind or solar lease, take the time to learn some basic information about the companies’ backgrounds in order to determine if you are dealing with someone that is familiar with how the renewable energy industry works and the benefits and burdens that go along with being a landowner with a wind or solar lease.

That said, it is up to you the landowner to decide if and to whom you want to potentially sell your wind royalties or solar leases to. However, to the extent you are looking to receive an estimated purchase price from a company with immense firsthand experience working on nearly every stage of and issues related to renewable energy projects, the team at Madison Street Energy would appreciate the chance to speak with you about your potential interest in selling your lease for an immediate lump sum cash payment.

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