Decommissioning and Land Restoration Provisions
- Removal of Infrastructure: The solar developer is generally responsible for removing all solar equipment and infrastructure from the property at the end of the lease term. This is crucial to return the land to its original condition or an agreed-upon state.
- Restoration to Original Condition: Lease agreements often stipulate that the land must be restored to its original condition or an agreed-upon condition after decommissioning. This ensures that landowners can resume normal use of their property without significant additional expenses.
- Decommissioning Plan: Solar land leases should include a clear plan for decommissioning, which outlines the steps and responsibilities for closing the facility, removing equipment, and restoring the land.
- Decommissioning Bonds: To ensure compliance with decommissioning plans, some leases may include a decommissioning bond. This financial guarantee is typically backed by a major financial institution and covers the costs of restoration if the developer fails to fulfill their obligations.
Importance of Early Planning
Landowners should prioritize decommissioning and restoration requirements during initial lease negotiations, as these long-term contracts may not allow for future renegotiations. Having a clear plan in place helps to prevent potential disputes or restoration challenges at the lease’s end.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-solar-leases-typically-address-the-issue-of-land-restoration-after-the-lease-ends/
