Newsroom Decommissioning

What Happens to Solar Farms After 30 Years? How to Answer Your Landowner

Lifespan, repowering, decommissioning bonds and the state laws behind them. What landowners read about year 30, and how your team answers it first.

In this article
  1. What's the average lifespan of a solar farm?
  2. Three things can happen at the end
  3. What decommissioning actually removes
  4. Who pays: decommissioning bonds and state laws
  5. What happens to the panels
  6. Can the land be farmed again?
  7. What your landowner reads before he reads you
  8. Answer it before he goes looking
  9. The owners who never got to ask

He's 64. The lease in your letter runs past his ninetieth birthday. Before he answers you, he types "what happens to solar farms after 30 years" into his phone.

A solar farm is built to run about 25 to 35 years. At the end, the project owner has three choices: keep running it, repower it with new panels, or decommission it. Decommissioning means the panels, racking, posts, wiring, inverters and fencing come out, and the roads usually go too. Then the soil is loosened and replanted so the ground can be farmed again. A growing number of states now require money set aside for that cleanup, through a bond, a letter of credit or a parent company guarantee.

What he actually finds on the first page of Google is messier, and it sits right next to your letter.

What's the average lifespan of a solar farm?

The Department of Energy says the average working life of a solar panel has grown from about 20 years in 2007 to 25 to 35 years in 2025. The figure comes from a Berkeley Lab survey of solar industry professionals.

Panels don't switch off on a set date. They lose a little output every year. One installer's page puts the average loss at about 0.5% a year, and says a farm runs at roughly 90% of its original output after 20 years. The American Clean Power Association says panels are guaranteed to produce at least 80% of their original rating after 25 years.

Inverters wear out sooner. The same installer page gives a central inverter 10 to 15 years, so a 30-year farm gets new ones partway through.

Three ways a solar lease ends at year 30 When the lease term ends at year 30, the solar farm either keeps running on an extended lease with the same equipment, is repowered with new panels on the same racking and cabling under an extended lease, or is decommissioned: equipment removed, ground restored and the land back to the owner, paid for by money set aside through a bond, a letter of credit or a guarantee. The owner wants to know which one, and who pays. WHEN THE LEASE TERM ENDS Three ways a solar lease ends. Year 30 Lease term ends Keeps running Lease extended, same equipment Repowered New panels, same racking and cabling, lease extended Decommissioned Equipment removed, ground restored, land back to the owner Paid for by money set aside (bond, letter of credit or guarantee) The owner wants to know which one, and who pays.
Three ways a solar lease ends, and what the owner gets back. Swipe to see all of it.

Three things can happen at the end

It keeps running

If the panels still produce and the lease allows it, the plant carries on. University of Wisconsin Extension says most leases for large solar projects run 20 to 30 years, often with an optional 10-year extension.

It gets repowered

Repowering means replacing the panels while reusing what's already there, like racking and cabling. A recycler's guide notes that a site with strong grid access is a likely candidate for a new solar project.

This surprises owners most. He pictured 30 years and then his field back, not a project that wants to stay. If your lease has extension options, say so in the first conversation, before he reads it in the draft and wonders what else he missed.

It gets decommissioned

Everything comes out and the land goes back to him.

What decommissioning actually removes

The American Clean Power Association's fact sheet lists it. Posts get pulled. A post that won't come out is cut off at a depth set by the local approval and buried. Wires above ground or shallower than three feet come out. Concrete foundations are broken up and hauled away. Compacted soil gets loosened, and roads are removed unless the landowner wants them kept.

Depth is the number a farmer cares about, because of his plow and his drain tile. Texas law requires foundations and buried cable to come out to at least three feet below the surface. The standard Illinois agreement says foundations to five feet, and lets cables buried five feet or deeper stay. Agricultural economists writing for Southern Ag Today describe a typical lease as requiring wiring removed down to plow depth.

Battery storage is a different case, with shorter equipment life and its own Texas rules. It has its own post: what storage landowners ask before they answer.

Who pays: decommissioning bonds and state laws

The cleanup is the project owner's cost, not the landowner's. His real fear is the company folding, or selling the project to someone he's never heard of. That's what financial assurance answers. A few state examples follow.

Texas. For leases signed on or after September 1, 2021, the lease itself must make the developer remove the equipment. It must also require financial assurance: a parent company guarantee with an investment grade rating, a letter of credit or a bond. It has to be delivered by the 20th anniversary of commercial operation or the end of the lease, whichever comes first. An independent Texas engineer estimates the cost, with an update by year 10 and at least every five years. If the project is sold, the security stays in place until the new owner provides its own.

Illinois. Commercial solar projects above 500 kW sign an Agricultural Impact Mitigation Agreement with the state Department of Agriculture. The standard agreement phases in money held by the county. It covers 10% of the estimated removal cost by the first anniversary of operation, 50% by the sixth and 100% by the eleventh. Removal has to be finished within 12 months after the end of the facility's useful life.

Ohio. For the projects it covers, Senate Bill 52, in effect since October 2021, requires an engineer's decommissioning plan filed with the Ohio Power Siting Board before construction. Removal has to happen within 12 months after the plant stops running. The bond equals the full cost estimate, without counting salvage, and is updated every five years.

Wisconsin. No specific state standard for solar. The Public Service Commission reviews each plan case by case, and local governments often ask for bonds, escrow or letters of credit.

The South. A 2023 Southern Ag Today review found Kentucky, Louisiana, Maryland and Tennessee require a decommissioning plan with financial assurance. Georgia has a model ordinance for local governments. Alabama, Arkansas, Florida and Mississippi had no statewide rules.

What decommissioning costs

Here the numbers online stop agreeing. A recycling company says $60,000 to $150,000 for a 2 MW installation. A Pennsylvania law firm cites a New York state study putting a 2 MW project near $100,000 after 20 years of inflation. The American Clean Power Association says some third-party engineering estimates come out negative. The scrap value of panels, steel and copper can be worth more than the removal.

He'll see all three. A farmers' advocacy group warns him against leaning on salvage value, because scrap prices are unpredictable. Your team needs one figure for his site, and who worked it out.

What happens to the panels

The American Clean Power Association says 85% of a panel's weight is glass and aluminum, both commonly recycled. Most modern panels pass the EPA leaching test that decides whether something counts as hazardous waste.

The honest catch: the Department of Energy says recycling in the US still generally costs more than a landfill. Some states have stepped in. The EPA lists California and Hawaii rules treating panels as universal waste, and a takeback program in Washington. In October 2023 the EPA announced it was drafting a rule to add solar panels to the federal universal waste rules.

Can the land be farmed again?

Yes, if the restoration is done properly. The industry fact sheet says a decommissioned site can go back to farming. Texas leases must let the owner ask for the ground returned to a tillable state. Wisconsin requires projects over 100 MW to file plans that protect soil and drain tile and restore the site.

What your landowner reads before he reads you

Look at what Google hands him for this search. A federal waste page. A recycler. A magazine story about who pays for the cleanup. Two Reddit threads about aging panels. And two Facebook groups, one where a member asks for "pics and stories of the abandoned" solar farms.

On "solar lease decommissioning," a law firm tells him to demand a bond. A Facebook post on the same page warns that his lease money will be "sucked into a multi-million dollar decommissioning mess." Next to them, a farmers' advocacy group lists red flags. Vague definitions. No deadline for an idle project. Assurance that's never updated, or that he has no right to draw on. Nothing that carries over if the project is sold.

None of those pages were written for you. All of them shape the questions your team gets on the first call.

Answer it before he goes looking

In the letter, one line. "When the lease ends, we remove everything and put the ground back the way we found it, and there's money set aside to pay for it." Only write the last part if it's true for your project.

On the phone, four answers. How long the lease runs and whether it can be extended. What comes out, and how deep. What money guarantees the cleanup if you go under. What happens if you sell the project. If your team has to check with legal first, the owner hears hesitation.

And think about who's asking. A 30-year lease outlives a lot of the people who sign one. The man asking about year 30 may be thinking of the son or daughter who'll own the ground by then, or the cousins who'll share it. In the owner replies we handle, the end of the lease comes up early, usually right after the money.

Sometimes the person who asks is the only one left who can sign. When the deed holder has died, it's the heirs, and they may be spread across several states. That's its own problem, which we cover in who signs when the landowner has died.

The owners who never got to ask

Every answer above assumes he read your letter.

Plenty of owners on your list never did. The mailing address is stale. The deed names an LLC whose mail goes to a registered agent. The farm passed to children who live two states away and have never seen your envelope. A clear answer about year 30 can't help an owner it never reached.

You don't have a land problem. You have a contact problem.

On one campaign for a developer in Georgia, 1 in 9 parcels wanted to talk about a lease once their owners were reached another way. For the other questions those owners ask, see what landowners Google before answering your letter.

If you want a rough sense of how many owners on your list never saw your mail, put your parcel count into the calculator.

Short answers

What happens to solar farms after 30 years?

The project owner has three choices: keep running it if the lease allows, repower it with new panels while reusing racking and cabling, or decommission it. Decommissioning removes the panels, racking, posts, wiring, inverters and fencing, usually the roads too, and restores the ground so it can be farmed again.

What's the average lifespan of a solar farm?

The Department of Energy says the average working life of a solar panel has grown from about 20 years in 2007 to 25 to 35 years in 2025, based on a Berkeley Lab survey of solar industry professionals. Panels lose a little output each year rather than stopping, and the American Clean Power Association says they are guaranteed to produce at least 80% of their original rating after 25 years.

What is a solar farm decommissioning bond?

It is money guaranteed by a third party so removal gets paid for even if the developer fails. Some states require it. Texas requires financial assurance in solar leases signed on or after September 1, 2021, delivered by the 20th anniversary of commercial operation or the end of the lease. Illinois phases it in to 100% of the estimated cost by the eleventh year. Ohio requires a bond equal to the full cost estimate, updated every five years.

Solar Marketing Corp reaches the landowners a developer's mail can't, on the parcel lists they already own. 740 MW of site control facilitated.