Can You Sell or Pass Down Land That’s Under a Solar Lease?
If you’ve leased your land for solar, chances are you made that decision with your long-term future in mind. A solar lease can bring in passive income, preserve your land, and give your family financial stability for decades. But what happens when life changes—when it’s time to sell the land, or when you’re thinking about passing it down to your kids or grandkids?
That’s where things get a little murky for a lot of landowners. The idea of being “locked in” to a solar lease for 30 or 40 years can raise real questions. Can you sell your property if it’s under contract? What about inheritance—will your kids be stuck with legal headaches or benefit from what you set up?
Here’s the good news: in most cases, yes, you can sell or pass down land that’s under a solar lease—and it might even make the property more valuable. But there are a few things you absolutely need to know to make sure that hand-off goes smoothly.
What a Solar Lease Actually Covers
A solar lease is a long-term agreement between you (the landowner) and a solar developer like K2 Renew. They pay you to use part of your land to install and operate a solar project. In return, you agree to give them access, keep the land use consistent with the project’s needs, and honor the lease terms.
These leases are often structured to last 20 to 50 years. That time frame includes options for construction, operation, and even decommissioning of the solar panels. Payments are typically made annually or quarterly, and in many cases, they increase over time.
One key detail: the lease stays with the land—not the person. That means if the property changes hands, the lease doesn’t get canceled or reset. It goes right along with the deed.
What Happens If You Sell the Land
Let’s say you decide to sell your land after the solar panels are up and running. Maybe you want to retire in a new state. Maybe you’re downsizing. Can you sell?
Yes, you can. But you need to make sure that any potential buyer understands what they’re getting.
Here’s how it usually works:
The solar lease “runs with the land”, meaning it transfers to the new owner automatically unless the lease says otherwise.
The buyer will need to agree to take over the lease terms. That includes honoring the developer’s access, maintaining any easements, and receiving the same payment structure.
Some leases include a “notice or approval” clause, which means you need to notify the solar company—or even get their approval—before finalizing the sale.
In most cases, this doesn’t slow down a sale, but it’s critical that you disclose the lease early and provide documentation during the listing process. A solar lease can actually increase the value of the land for the right buyer, especially if that buyer is looking for passive income or a long-term investment.
What Happens If You Pass the Land Down
Now let’s say you're not selling, but instead passing the land on to your children. Maybe you’re setting up a trust. Maybe you're writing your will. Maybe your kids are already managing parts of the property.
In that case, the lease passes down like any other asset. Your heirs inherit both the land and the lease agreement. That includes:
The rights: Lease payments, land-use protections, and access to the terms.
The responsibilities: Maintaining compliance with the lease, allowing solar access, and handling tax implications.
The most important thing here is clarity. Make sure your solar lease is included in your estate plan. Your kids (or whoever will inherit the property) need to know:
Who to contact at the solar company
Where the lease documents are
What income the lease is generating
What rules or limits are tied to the land because of the lease
Legal & Financial Considerations
This is where things get a little more technical—but stay with me.
Confirm that your lease is transferable
Help you draft the right disclosures for buyers or heirs
Review how lease income will affect your taxes (or your estate's taxes)
Some leases may also impact agricultural exemptions or property tax classifications, depending on your state. An advisor can help you avoid any surprise tax bills or legal headaches later on.
Also worth noting: if you're setting up a trust or LLC to manage your land, the lease may need to be amended to reflect the new entity. This isn’t a problem—it just needs to be done right.
The K2 Renew Approach
At K2 Renew, we don’t just set up leases—we build long-term relationships with landowners and their families. That includes supporting you through changes in ownership, helping your heirs understand their rights, and making sure everything stays in good standing if you decide to sell or transfer your land.
Our leases are designed with clarity and flexibility in mind. That means straightforward language, transparent payments, and terms that protect your land’s legacy—not just your lifetime.
Whether you're 45 or 85, your land matters. We’re here to help you protect it and make it work for your future—and your family’s.
Key Takeaways
You can sell land with a solar lease—but you need to disclose the lease and make sure the buyer is informed.
You can pass down land with a solar lease—just include the lease in your estate planning and talk to your heirs.
The lease stays with the land, not the individual. So it continues even after ownership changes.
Legal and financial advisors can help avoid complications, especially around taxes or trust transfers.
K2 Renew supports landowners at every stage of ownership—including legacy planning.
Download the ‘Solar Lease Ownership Guide’
If you’re thinking about selling or passing down your leased land—or if you just want to make sure you’re prepared for the future—grab our free guide. It’s called the Solar Lease Ownership Guide, and it walks you through everything you need to know in plain English.
Download it now and take the next step in protecting your land’s value—for you and for whoever comes next.
