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The Solar Land Acquisition Process, Step by Step, and Where It Stalls

The developer's land process in order: screening, parcel list, first contact, option, diligence, lease. What each step needs and where it stalls.

In this article
  1. Step 1: Screen for sites
  2. Step 2: Build the parcel list
  3. Step 3: First contact with the owner who can sign
  4. Step 4: Sign an option, sometimes after a letter of intent
  5. Step 5: Diligence while the option runs
  6. Step 6: Exercise the option into a lease or purchase
  7. Step 7: Hold site control through permitting and interconnection
  8. Where it really stalls: getting the owner on the phone
  9. You don't have a land problem

Your GIS work is done. Three counties, a substation with room on it, and a list of six hundred parcels that are flat, dry and close enough to the line. Six months later, most of those rows in the land tracker still say "no response."

The solar land acquisition process runs in this order. Screen for sites. Turn the screen into a parcel list with owners. Make first contact with the person who can actually sign. Sign an option to lease or buy. Do diligence on title, survey and environment while the option runs. Exercise the option into a lease or a purchase. Then hold that site control through permitting and interconnection.

If you're asking what a land team does all week, that's the list.

Each step has its own paperwork and its own way of failing. The one that stalls the most projects comes early, at step three.

The solar land acquisition process, step by step Seven steps in order: screen for sites, parcel list, first contact, option, diligence, lease or purchase, and site control held. Each has an owner on the developer's side: GIS and mapping, county records, your lawyer, title, survey and environmental, your land team, permitting and interconnection. First contact is often owned by nobody, and steps 4 to 7 only start once an owner answers. THE SOLAR LAND ACQUISITION PROCESS Seven steps. One of them has no owner. EACH STEP, AND WHO USUALLY OWNS IT ON YOUR SIDE 1 Screen for sites GIS and mapping 2 Parcel list County records 3 First contact Often nobody 4 Option Your lawyer 5 Diligence Title, survey, environmental 6 Lease or purchase Your land team 7 Site control held Permitting and interconnection Steps 4 to 7 only start once an owner answers.
Every later step has an owner on your side. First contact usually doesn't. Swipe to see all of it.

Step 1: Screen for sites

What it needs. Grid capacity and a substation close by. Then flat, cleared land outside wetlands and floodplains, in a county that allows solar. Most of this is desktop work with mapping tools.

Where it stalls. Local rules. Not every county wants solar, and a site that passes every physical test can still die at the zoning board. Check the ordinance before you fall in love with the parcels.

Step 2: Build the parcel list

What it needs. Parcel numbers, acreage, the owner of record and a mailing address, usually pulled from county tax records. One utility-scale project can involve thousands of acres and dozens of parcels, and a missing parcel in the middle can sink the layout.

Where it stalls. The county records who pays the tax bill. That's often not who can sign. The deed names an LLC and the address is a registered agent's office. The owner died and the bill still goes to the estate. The farm passed to a son two states away and the address was never updated. Your list looks complete and a real share of it points at the wrong door. (We wrote up how to find who can sign when the deed names an LLC.)

Step 3: First contact with the owner who can sign

What it needs. The right person, a reason to answer, and someone on your side who picks up fast. For most owners that reason is a money range for his land, and why his parcel and not his neighbor's.

Where it stalls. Everywhere, and it decides whether steps 4 through 7 ever happen. If you're weighing whether a land agent should own this step, see where an agent earns the fee and where agent hours stall.

Step 4: Sign an option, sometimes after a letter of intent

What it needs. Some developers send a letter of intent first to hold the property while they look. Others go straight to an option to lease, often with the full lease attached.

Ohio State's farmland leasing guide sums up how the option works for the owner. It binds him, but it doesn't bind you to build. To be enforceable it needs payment. That's usually a lump sum at signing, which the guide says may be called a "bonus payment." Some options add a yearly per-acre payment while they run. The guide calls two to five years common for the option period. The owner can usually keep farming the land while it runs. (Our option agreement post goes clause by clause.)

Where it stalls. The signature. The same guide says co-owners like a husband and wife must both sign. An LLC signs through an authorized representative, after the company approves the deal under its own rules. A trust signs through a trustee with the authority to do it. On an inherited farm, that can mean five cousins, and one of them hasn't opened his mail in years.

Step 5: Diligence while the option runs

What it needs. The option buys you time to find out whether the land works. A real estate lawyer at Lippes Mathias lists what that early diligence covers:

  • A title report, which shows easements, rights of way, mortgages and any earlier lease with rights ahead of yours
  • An ALTA survey, which shows road access, boundary lines, setbacks and wetlands
  • Severed oil, gas and mineral rights, and any pipelines or wells on the property
  • A Phase I Environmental Site Assessment, which the article says should be done before full site control, meaning before the lease is signed or the land is bought

Many developers also want a new legal survey of the lease area, according to the Ohio State guide.

Where it stalls. Things the owner forgot he had. A gas line easement where no structure can go. A mortgage whose lender has to agree before the lease holds, and the guide notes a lender may or may not be willing to sign that subordination agreement. A farm tenant with a lease of his own. Every fix runs back through the owner. The person who answered you once now has to answer you again, find papers, and call his bank.

Step 6: Exercise the option into a lease or purchase

What it needs. Notice under the option, then the signed lease or the closing. Ohio State lays out the phases of a typical lease. Development runs about two to five years, and construction from nine months to over a year. Operations run 15 to 30 years, renewals likely five or ten more, and cleanup about a year at the end.

Where it stalls. Time. Two to five years is a long stretch in a family. Owners die, farms get split, and the person who signed the option may not be the person who has to sign what comes next.

Step 7: Hold site control through permitting and interconnection

What it needs. Every parcel in the layout, under control, for as long as the studies run. Savion says permitting can take three to five years, and that interconnection takes years of coordination and engineering studies. (How site control ties into the interconnection queue is its own post.)

Where it stalls. One parcel drops and the layout changes. Then you're back at step 3 on a neighbor you never reached the first time.

Where it really stalls: getting the owner on the phone

Look at who owns each step. Screening has your GIS analyst. The option has your lawyer. Diligence has a title company, a surveyor and an environmental consultant. Interconnection has engineers. Every one of them has a scope and a deadline.

First contact usually has a mailer and a land tracker, and on most teams it has nobody whose whole job is getting the owner to answer.

And every later step assumes it went right. You can't send an option to a man who never called back. You can't run title on a parcel whose owner has never heard your name. When a project slips, it's tempting to blame the permit or the queue. Look at the land tracker first and count the parcels marked "no response" in the middle of your layout.

On the developer parcel lists we work every week, the owners behind "no response" fall into the same few groups:

  • Owners who moved away. The heir in another state, the couple who retired near the grandkids. The tax bill finds them. Your letter often doesn't.
  • Owners behind an LLC or trust. The mail goes to a registered agent or an accountant. Nobody there has walked the land.
  • Owners who died. The heirs don't know a developer is asking, and the estate address is a dead end.
  • Owners who already threw your last two letters away. Same envelope, same answer.

When these owners are reached and they do write back, they ask the same things: how much a year and for how long, whether they can keep farming until you build, and whether you're a real company. If your team can answer those in the first call, the option conversation starts there. If the reply sits for days, it goes cold before anyone calls.

You don't have a land problem

The parcels on your screen are probably fine. You found them with good data. The owners who would sign are on that list already. A share of them have just never heard from you in a way they answered.

That's the step we run. We find who can actually sign each parcel on your list and email every owner, not only the ones who open mail. We follow up with the quiet ones and tell your team in seconds when an owner wants to talk. Your team takes the call, negotiates the option and runs the diligence. The owners are yours.

On one campaign for a developer in Georgia, 1 in 9 parcels wanted to talk about a lease once their owners were reached this way. Across six campaigns, 214 parcels did.

If you want a rough idea of how many owners on your list have never seen your letter, put your parcel count into the calculator.

Short answers

What are the steps in the solar land acquisition process?

Screen for sites near grid capacity, build a parcel list with owners from county records, make first contact with the person who can sign, sign an option to lease or buy, do title, survey and environmental diligence while the option runs, exercise the option into a lease or purchase, then hold that site control through permitting and interconnection.

What do you do in land acquisition for a solar project?

A land team finds parcels that fit, works out who can actually sign for each one, gets those owners talking, negotiates and signs options, runs diligence on title, survey, mineral rights and environmental conditions, and converts the options into leases or purchases. On most teams the slowest part is getting the right owner to answer in the first place.

How long does a solar option period last?

Ohio State's Farmland Owner's Guide to Solar Leasing says an option might last at least one year and could run several years or more, with two to five years appearing common. The owner usually gets a signing payment and sometimes a yearly per-acre payment during the option.

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.