Solar Leasing Contracts

• Lease term: usually an initial term of 25-30 years, often with a clause that allows the developer to extend the lease without a new landowner approval.
• Termination: many leases allow developers to end the lease at any time, but do not allow landowners to terminate. Ask about past terminations, and review the contract for terms.
• Renewal: Can the developer renew the lease after the initial term?  Does the landowner have a right of refusal? What would the payments be during the additional term? 
• Decommissioning: Ensure decommissioning plans are clear.  What happens if the developer sells the project or goes bankrupt?
• Land restoration: Will the land be restored by the project operator, and what are the physical and financial specifics? Confirm what’s included in the agreement.

• MISO oversees Wisconsin’s transmission system and approves interconnections.
• Can you end the lease early? Understand the terms.
• Local government permits utility-scale projects up to 100 megawatts.
• The PSC permits solar projects 100 megawatts or larger in size.

See our page on how the Siting Process works for more information.

Farming under a solar lease is possible but must be clearly defined in the contract to be enforceable. Written agreements are key, so make sure your lease clearly spells out rights and responsibilities. Here are a few important areas to explore:

• Farm use during development: if the project is delayed, can you still farm the land? Make sure the lease clarifies temporary agricultural use during the early phases and what will happen if construction begins before the crop is harvested.
• Farm use after installation: once panels are up, can you cut hay, graze livestock, or spread manure there? Sheep can help manage the vegetation under solar arrays. See our Agrivoltaics page for information on dual use solar and agriculture practices.
• Liability concerns: dust, chemicals, and runoff from farming could affect solar panels. Check if the lease addresses liability for these issues.
• Crop damage payments: If farming continues, the lease may cover losses from construction or operations. Review payment terms carefully—how yield is measured, reimbursement rates, and timing.
• Timing: if farming must stop, when will it happen? A December versus May stop date could significantly impact that year’s operations and payments.

If you rent land to a farmer and also sign a solar land lease, make sure you understand both agreements. Some solar developers may require farming to stop, in which case the landowner is legally required to complete a lease termination with the farmer. Crop damage payments may need to be negotiated if termination occurs during the crop season.

Learn more about ending a farmland lease in Wisconsin in this Farmland Lease Termination Guide.

If your land is in the Farmland Preservation Program, check with the Wisconsin Department of Agriculture, Trade & Consumer Protection to see if it’s eligible for solar leasing.

Learn more: Farmland Preservation Program.

Make sure easements, mortgages, or liens won’t limit your solar lease. An attorney or title company can help review and manage any restrictions.

Solar Site Maintenance—Know Your Responsibilities

Who handles upkeep under the panels? If it’s you, check if you’re compensated and allowed to use herbicides. If it’s someone else, confirm access and management details.

For substations or transmission lines, Wisconsin law requires utilities to control weeds, but developers may ask you to waive this right. Review your lease carefully.

Learn more: Landowner Rights in Wisconsin.

If your land has drainage tile, make sure your agreement states the solar developer is responsible for repairs, access, and reimbursement. They should also cover any flooding until the tile is fixed.

Does the lease offer a signing bonus? Check for a time limit—it shouldn’t pressure you to sign too quickly. Some developers cover attorney fees for lease review. Be sure you can pick your own lawyer, preferably one experienced in solar leases.

Make sure your lease includes right of entry if you need to access other land you own or rent—especially if farm lanes run through the leased area.

Ensure the solar array meets county and town zoning rules. Confirm access road approvals and understand any cooperation required for permits.

The Wisconsin DNR highlights key concerns like wetlands, erosion, invasive species, and end-of-life disposal. Learn more: Wisconsin DNR Solar Guidelines.

Who covers liability insurance? If the developer provides it, ensure you’re listed as an additional insured. If you need coverage too, expect them to request the same.

Does the agreement have a confidentiality clause? If so, check how it affects you, your family, and employees—plus any penalties for non-compliance.

When the lease ends, who removes the solar array and restores the land? Consider buried lines, future development, and who pays if the developer sells or goes bankrupt. Landowners may require escrow funds or a removal bond to ensure restoration costs are covered.

Wisconsin law lets utilities use eminent domain for power plants and transmission lines, but it’s unclear for non-utilities. Experts argue solar projects don’t need eminent domain since land assembly isn’t a big hurdle.

So far, no eminent domain actions for solar generation have been initiated in Wisconsin.

Farmland may get use value assessment, lowering taxes. If converted to solar, taxes could rise if the land is reclassified.

Solar panels and storage may be tax-exempt, but the land itself might not be. Utilities may pay a license fee instead of property taxes.

If land is rezoned, a conversion penalty may apply. Discuss with the developer whether they’ll cover tax increases or penalties. Learn more: Wisconsin Agricultural Assessment.