For Landowners

Lease or Sell? Land Profitability Calculator

Designed specifically for landowners. Discover the true value of your land for photovoltaic projects and compare whether a long-term lease or direct sale is more profitable.

Lease or Sell? The Smart Decision

In recent years, the photovoltaic lease model has gained popularity over direct land sales. Why? Because it allows you to turn your land into a passive income-generating asset without losing ownership.

✅ Lease Advantages

✓ You retain land ownership.
✓ Recurring income for 25-30 years.
✓ Annual CPI adjustments (inflation protection).
✓ Ironclad contracts with tier-1 companies.
✓ Possibility to recover the land at the end.

⚠️ Disadvantages (Considerations)

⨯ You don't receive immediate capital from a sale.
⨯ Usage restrictions during the contract period.
⨯ Dependence on the operator's financial health.
⨯ Land market value may increase more than rent (opportunity risk).

Market Prices 2025/2026

Lease value varies greatly depending on location, proximity to electrical connection points, and solar irradiation in the area.

Zone	Typical Price	Characteristics
Interior (Castilla, Extremadura)	1,200 - 1,800 €/Ha	High irradiation, flat terrain.
Andalucía (South)	1,500 - 2,200 €/Ha	Maximum irradiation, high demand.
North (Galicia, Cantabria)	800 - 1,200 €/Ha	Less sun, lower competition.
Near Substation (SET)	+20% - 40% bonus	Savings in evacuation costs.

Anatomy of a Lease Contract

Standard contracts have very well-defined clauses. Here are the most important ones:

Duration

Typically 25-30 years, with an option to extend for an additional 5-10 years.

Rent Adjustment (CPI)

Rent is updated annually according to the Consumer Price Index (CPI), protecting against inflation.

Land Reversion

At the end of the contract, the company must completely dismantle the plant and return the land in similar agronomic conditions.

What Devalues Land for Solar?

Not all land is equally attractive. These factors reduce lease value:

Excessive slope: >15% requires costly grading.
Distance to electrical grid: >5 km adds millions in evacuation costs.
Environmental protection designations: ZEPA, LIC, or Red Natura 2000 make permits difficult.
Shadows: Proximity to mountains or tall buildings south of the land.
Easements: Overhead power lines, gas pipelines, livestock trails.

Want to know your land's real potential?

Access our map of existing plants and substations to evaluate your location.

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Are you an investor or developer looking for advanced financial analysis?

Try our Advanced Investment Calculator (CAPEX, OPEX, BESS) →

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