Common clauses in solar land lease agreements regarding decommissioning typically address the removal of the solar facility at the end of the lease term and the restoration of the land to its original condition. These clauses often include the following key provisions:
- Responsibility for Decommissioning: The lease specifies which party—usually the solar company—is responsible for decommissioning the solar facility, which includes removing panels, posts, concrete pads, wiring (often to plow depth), and other equipment.
- Restoration of Land: The solar company must restore the land to its original grade, vegetation, and soil condition after removal of the solar equipment. This may include removing subsurface materials to a specified depth to ensure the land is suitable for future use.
- Decommissioning Bond or Security: Many leases require the solar company to establish a performance bond or financial security to cover the costs of decommissioning and site cleanup. This bond serves as a safeguard for the landowner to ensure funds are available if the solar company fails to fulfill its decommissioning obligations.
- Timing and Procedures: The lease may define specific timing for when decommissioning must occur (usually at the end or termination of the lease) and outline procedures for how the equipment removal and land restoration should be performed.
- Compliance with State Policies: Decommissioning clauses often incorporate or complement state regulations, which in many states require bonding and specify standards for site reclamation.
- Default and Enforcement: Provisions may cover what happens if the solar company defaults on its decommissioning duties, including landowner rights to use the bond for cleanup and potential legal remedies.
In summary, decommissioning clauses in solar land lease agreements ensure the solar developer removes all installed infrastructure at lease end, restores the land, and provides financial security to protect the landowner from cleanup costs, reflecting both contract negotiation practices and evolving state policies on solar project decommissioning. These clauses help balance the interests of both parties and secure the landowner’s property for future use after the solar project concludes.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-common-clauses-in-solar-land-lease-agreements-regarding-decommissioning/
