A 2025 whitepaper from Paces reveals that over 70% of clean energy projects fail to reach Notice to Proceed due to late-emerging risks. Land strategy is crucial, yet developers often overlook its importance. Landowners now demand upfront commitments to secure strategic parcels, especially in urban battery energy storage projects.
Developers often underestimate the importance of land strategy in clean energy projects. Many assume land finance is as complex as full project finance, leading to unnecessary delays. Banks’ rigid lending practices can widen the financing gap, pushing developers to seek sponsor equity. Dedicated land-finance solutions can preserve equity and keep projects on schedule.
Major developers are turning to land finance to expedite transactions and manage capital efficiently. For utility-scale solar projects with storage, precise land strategies are essential for success. Accelerate’s $21-million sale-leaseback for a 460-MW solar project in Texas highlights the benefits of securing land positions early in the development process.
Some developers purchase land early with equity, limiting flexibility once it’s integrated into the project entity. Separating land from the project company can offer more control and simplify future transactions. With the increasing integration of storage in solar projects, developers must adapt their land strategies to meet evolving market demands and timelines. Maria Klutey, senior vice president of Renewables at Accelerate, emphasizes the importance of treating land as a capital decision to move faster and protect margins in a competitive market. With over 20 years of experience in renewable energy finance, she has supported numerous land transactions for solar, wind, and storage projects nationwide. Visit Accelerate for more information.
Read more at Yahoo Finance: Rethinking Land Strategy in Utility-Scale Solar
