A solar real estate investment fund, SolaREIT, is officially launching with the closing of their first tranche of capital and looks to employ an innovative model with more options to compensate landowners for hosting solar farms. Solar is a land-intensive technology — the National Renewable Energy Laboratory estimates that solar panels will cover 3 million acres by 2030. While the majority of solar projects are on leased property, SolaREIT can offer alternative options to developers and project owners that reduce their lease costs.
Following the successful first round of funding, the company is actively looking to partner with U.S.-based project owners, solar developers, and landowners to provide innovative financing options for land purchases and solar lease ‘buy-outs.’
“While solar developers use land leasing as the primary financing model, it doesn’t always work for landowners and farmers who may need immediate access to capital,” says Laura Pagliarulo, President of SolaREIT. “Our goal is to expand financing and compensation choices that will help the industry grow and thrive— providing farmers and landowners with more options for compensation, and developers ways to reduce their lease payments.”
SolaREIT increases options for all aspects of solar, including:
● Liquidity for Landowners and Farmers: Approximately 85% of all land for solar projects is leased. However, with ongoing downward economic pressure on farmers, many are interested in selling or monetizing their lease payments.
● Land Cost Solutions for Developers and Project Owners: As the overall cost of solar has decreased, land—which historically represented less than 5% of the overall cost of developing solar projects—is now approximately 15% of total project costs. SolaREIT can help developers reduce their land costs.
SolaREIT has already done land transactions in Maryland and Minnesota, helping both their solar development partners and the landowners accomplish their financial objectives. SolaREIT’s innovative processes allow for quick and efficient transactions saving time and money for all parties.
— Solar Builder magazine