Reading where more and more solar farms are in trouble and attached are a few videos of those I read about. Also I noted in my area west of Houston, that more and more solar farms are looking they are in a state of disrepair, broken panels overgrown vegetation etc. If they go bankrupt as seems to be the trends who pays to remove.
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Looks Like the Solar Farms are in Trouble
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Last: 5 min ago by agneck
Complete List of Recent Bankruptcies
https://www.solarinsure.com/the-complete-list-of-solar-bankruptcies-and-business-closures
https://www.solarinsure.com/the-complete-list-of-solar-bankruptcies-and-business-closures
Pretty sure thats going to fall on the property owners. And is the reason the lease rates were so attractive.
Hopefully those leases required some sort of bond for remediation. I know a guy who leased some ground for a battery storage facility and it was included in the lease.
The most moronic misuse of land in history.
Hey, I got a great idea.
Lets bulldoze and burn trees, and replace green space with concrete, steel, glass, and heavy metals.
And we're doing it for...
the environment.
Hey, I got a great idea.
Lets bulldoze and burn trees, and replace green space with concrete, steel, glass, and heavy metals.
And we're doing it for...
the environment.
cslifer said:
Hopefully those leases required some sort of bond for remediation. I know a guy who leased some ground for a battery storage facility and it was included in the lease.
There's been a law in TX since 2021 requiring owners of the facilities to cover decommission costs.
Late morning today the state grid was running on 45% solar power. It's not some flash in the pan gimmick that's going away. Wind and solar will continue to grow. The big question to me is will nat gas turbines continue to be the swing capacity to fill in the gaps. While battery banks have made impressive strides, I don't think they'll push out nat gas significantly.
Post a screenshot of the ERCOT site with those numbers please.
I see 32% now. It was 45% earlier?
So 31% of our current energy generation is from reliable sources?
Fortunately our NG capacity is almost as large as wind and sun combined.
Fortunately our NG capacity is almost as large as wind and sun combined.
10:44AM, 44.5%
Solar and wind make what they make. The wind blows and the sun shines when and to what degree it will, we don't control that. Natural gas turbines start and stop easily, so they are used to cover the gaps. If solar and wind go to 0, the lights don't turn off. The other sources ramp up.
Pursuant to the statute, the financial obligation to remove and restore is not required until the earlier of the 20th anniversary of the operations date or termination of the agreement. The restoration and removal analysis has to be done on the 10th anniversary, but no financial obligation is required until 20th. It's very important to have an attorney who has experience in these agreements review them.
There are real solar and wind projects out there that have a role, but there was a lot of solar leasing done in response to specific tax credits in the Inflation Reduction Act that have little to no chance of being built. I've killed just as many solar agreements as the ones I've completed. We will see more wind farms built, particularly along the coast.
There are some very large natural gas generation projects in the works. Legislation was passed last session that provides subsidized financing. A key benefit for renewables expired and was not extended in December 2022.
There are real solar and wind projects out there that have a role, but there was a lot of solar leasing done in response to specific tax credits in the Inflation Reduction Act that have little to no chance of being built. I've killed just as many solar agreements as the ones I've completed. We will see more wind farms built, particularly along the coast.
There are some very large natural gas generation projects in the works. Legislation was passed last session that provides subsidized financing. A key benefit for renewables expired and was not extended in December 2022.
curious to see if the 45x, 45V type credits will survive going into the new administration. Lots of different renewable credits may be in jeopardy.
The last time I was approached to lease I let the process move far enough along to get a copy of the full lease agreement in hand and start a first pass at red-lining it.
30 year deal, with an option for 10 more years
They claimed they would pay all decommissioning and would set aside an escrow account to cover those costs. HOWEVER they weren't going to begin funding that escrow UNTIL YEAR 15!!!
I quit reading right there. That was the ultimate deal killer. I wasn't worried about them going bankrupt in years 15-30. Heck I figured, truth be told without major changes in legislation if they made it to year 5 it would be ok. I was worried about them going belly up in year 1 or 2. When I asked what happens if something were to go sideways before that escrow account were fully funded I got a dismissive answer about State law.
This was on top of other glaring issues and I ultimately just dropped the whole thing and truth be told I don't know who ghosted who because I quit reading and they never contacted me again.
30 year deal, with an option for 10 more years
They claimed they would pay all decommissioning and would set aside an escrow account to cover those costs. HOWEVER they weren't going to begin funding that escrow UNTIL YEAR 15!!!
I quit reading right there. That was the ultimate deal killer. I wasn't worried about them going bankrupt in years 15-30. Heck I figured, truth be told without major changes in legislation if they made it to year 5 it would be ok. I was worried about them going belly up in year 1 or 2. When I asked what happens if something were to go sideways before that escrow account were fully funded I got a dismissive answer about State law.
This was on top of other glaring issues and I ultimately just dropped the whole thing and truth be told I don't know who ghosted who because I quit reading and they never contacted me again.
I'm no expert but I did quite a bit of research a couple years ago when a neighbor's ranch next to mine was under a 4 year preliminary lease for solar development. We had the same lease offers but had always declined.rancher1953 said:
Complete List of Recent Bankruptcies
https://www.solarinsure.com/the-complete-list-of-solar-bankruptcies-and-business-closures
Several solar farms have been built in the last 2 years and are operating on the NE side of Houston but in our area the land was purchased by the solar developers.
It is my understanding they get a massive Federal tax credit they can then sell on the open market. This credit funds much of their costs. Other Federal grants and programs are also in play. Additionally, our local school district and county gave the developers tax abatements for years into the future and they had not been assessed roll back taxes as required by state law the last time I asked our appraisal district…. Typical government scam at many different levels.
Do you think that Texas law can be rescinded or significantly changed in the future by the Texas legislature?ktownag08 said:cslifer said:
Hopefully those leases required some sort of bond for remediation. I know a guy who leased some ground for a battery storage facility and it was included in the lease.
There's been a law in TX since 2021 requiring owners of the facilities to cover decommission costs.
Remember, they work for whoever pays them the most. We have learned that over the years with eminent domain reform laws.
Just like the Texas Railroad Commission does with oil Wells and you see the number of orphan Wells across the state. My understanding in this case the landowner is responsible for the well after the oil company skips town. When these solar companies skip or go out of business the same will happen.
That's fine but...ktownag08 said:cslifer said:
Hopefully those leases required some sort of bond for remediation. I know a guy who leased some ground for a battery storage facility and it was included in the lease.
There's been a law in TX since 2021 requiring owners of the facilities to cover decommission costs.
There is no leverage whatsoever. Feels good. Looks good. But...uh...someone going to find the company owner and send Uncle Guido to bust some knees or what? How does this actually work? Poster above illustrated one loophole, but to me, if the company doesn't exist, youre SOL.
No hydro? Did the water stop flowing?
rancher1953 said:
Just like the Texas Railroad Commission does with oil Wells and you see the number of orphan Wells across the state. My understanding in this case the landowner is responsible for the well after the oil company skips town. When these solar companies skip or go out of business the same will happen.
The landowner is not responsible for the well when the oil company skips town…. the RRC is. The oil company has to put up bonds to the RRC while drilling and operating the well. I do not know if there is an agency that regulates renewables.
Who pays to remove. . Help on this. The solar farm goes bankrupt and shuts down and abandoned, is there a law that would require a cleanup as in a potential damage to soil, air or water to protect environment? Are solar farms toxic? Heck are wind turbines toxic?
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