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Rethinking Land Strategy in Utility-Scale Solar
Yahoo Finance· 2025-12-13 14:56
Core Insights - Over 70% of clean energy projects fail to reach Notice to Proceed (NTP), primarily due to late-surfacing risks, indicating a need for a data-driven approach in early-stage development [1] - Land strategy is crucial for project success, often underestimated compared to interconnection delays and equipment shortages [1][3] Group 1: Misconceptions and Strategies - Developers often believe they can postpone land finance decisions, which leads to delays and increased costs, especially with the integration of storage in utility-scale solar projects [2][3] - Many landowners now require upfront commitments, making it essential for developers to secure site control early to avoid losing strategic parcels to quicker buyers [3] - The price of land can escalate significantly based on demand, as seen in West Texas where prices can rise from $3,000-$5,000 per acre to over $20,000 per acre in ERCOT territory [3] Group 2: Land Finance Understanding - Developers mistakenly equate land finance with project finance, causing unnecessary delays; land finance is simpler and can be managed in-house [4] - Land-focused capital providers can close transactions in 30-60 days, which is critical for projects that need to respond quickly to market changes [4]