Leasing Land for Solar Systems: Lease Prices, Trends and Potential 2026

Leasing land for solar systems is more attractive than ever in 2026: developers are actively looking for plots for solar parks, and the lease rates on offer are a multiple of what agricultural use returns. Property owners, whether farmers, retirees, or businesses, generate long-term additional income through solar leasing while contributing to the energy transition. Whether a single plot or a larger contiguous area: if you want to lease land for photovoltaics, you secure stable returns for decades. In this article, we examine the current lease prices per hectare in Germany, analyze market developments and future trends, and show the typical leasing models landowners choose in practice. You'll also learn which aspects of contract design are particularly important.

Note: Feel free to use our Area Check from Enlapa to check in seconds if your land is suitable for a solar park. If you want to offer your land, you can directly list it to receive non-binding lease offers from project developers. For the full picture on requirements, lease rates and process, see the overview Lease Land for a Solar Park.

Current Lease Prices 2026: What's Possible per Hectare?

Lease prices for photovoltaic land have risen sharply in recent years. While normal agricultural leases in 2023 averaged only a few hundred euros per hectare nationwide (e.g., ~389 €/ha) and about 305 €/ha in Mecklenburg-Western Pomerania, solar park investors pay ten times more and higher. Currently, 3,000 to 5,000 euros per hectare per year are commonly offered. In some cases, peak leases of up to ~5,500 €/ha are possible. The exact amount depends on factors such as solar radiation, grid connection, and regional demand. The following table provides an overview of typical lease prices in various regions of Germany:

As you can see: Location differences play a role. In sunny southern and eastern regions, on average high leases are achievable, while in regions with slightly less solar radiation or less competition, rates tend to be at the lower end of the range (sometimes ~3,000 €/ha). Nevertheless, solar lease prices are many times higher than classic agricultural leases in all regions. This ensures that more and more landowners prefer to lease their fields to PV project developers rather than farmers.

For illustration: In Baden-Württemberg, farmers were offered around 3,800 € per hectare for a planned solar park – compared to just ~274 €/ha that arable land there generated on average in 2023 according to the Statistical Office of Baden-Württemberg. Over 20 years, this adds up to about 760,000 € in income per 10 ha, without work for the lessor. This example underlines the enormous financial incentives of solar leasing.

Market Developments and Future Trends

The demand for suitable land for ground-mounted photovoltaics is currently very high and is likely to continue rising. This is mainly due to the ambitious expansion goals of the German government: By 2030, 80% of electricity should come from renewable energy sources. To achieve this, thousands of new solar parks need to be built nationwide – often on previously agriculturally used land. Already, the expansion of solar and wind energy on farmland is booming. This drives up lease prices and intensifies competition for land.

Experts expect this trend to continue. Large project developers like BayWa r.e., Orsted, or Enerparc are continuously looking for areas of ~10 ha or more to develop new solar parks. Some federal states are also relaxing their requirements: In Bavaria, for example, the annual tender contingents for ground-mounted PV have been increased, and in Baden-Württemberg, up to 0.5% of the state's external area may be used for PV since 2023. Agri-photovoltaics (simultaneous agricultural use and power generation) is also gaining attention as it could represent a compromise for fertile soils.

At the same time, farmers' associations warn of negative consequences: If a large part of solar expansion takes place on arable land, around 80,000 hectares of agricultural land could be lost by 2030. This shows the field of tension: On one hand, enormous potential for the energy transition and lessors, on the other hand, concerns about food production and land market prices. Many municipalities find themselves in a dilemma – they want to generate income from solar parks without displacing local agriculture too much.

Future trends can nevertheless be formulated positively: Lease prices are likely to remain stably high or continue to rise given the demand, providing lessors with long-term planning security. With growing market experience, established contract models have emerged (see below) that new lessors can use as a benchmark. New business models are also appearing, such as citizen participation in solar parks or bonus payments from operators to municipalities (§6 EEG 2023 enables municipal participation). Overall, leasing to solar investors has become an important source of income in rural areas, and this trend continues in 2026 and beyond.

Typical Leasing Models in Practice

Many property owners report positive experiences with PV leasing. The most common model is a pure land lease: the owner provides the land, the project developer plans, builds and operates the solar park, and the lease is paid out at a fixed amount annually or quarterly. For lessors in retirement this is particularly attractive, because the income arrives without their own capital investment and without ongoing work, while the solar park produces green electricity for the region.

The second widespread model combines lease income with continued farming. Farmers take care of maintaining the green spaces under the modules and receive additional compensation for this on top of the lease. Leasing and self-cultivation are therefore not mutually exclusive. Especially with agri-PV concepts, farmers can continue to generate agricultural yields, for example through grazing or special crops, while collecting lease payments.

Experience reports in trade media confirm these positive trends. More and more farmers openly report that they give parts of their operational areas to solar investors to become economically more stable. For some, it's a welcome "pension replacement" when there's no farm successor in sight: Instead of selling land, it's leased long-term and secures a fixed income for 20-30 years. However, it's important to choose reputable partners – more on this in the next section.

(Tip: The ENLAPA Magazine has more articles on leasing solar land, for example the current overview of photovoltaic lease prices.)

Important Aspects of Contract Design

A photovoltaic lease contract often runs for very long periods (20-30 years). Accordingly, the contract design should be done carefully. The following points are particularly important:

• Duration and Extension Options: Common are basic terms of 20 or 25 years plus extension options (e.g., twice 5 years) up to a maximum of ~30 years total. Longer contract commitments are not legally enforceable in the long term – after 30 years, either party can terminate (cf. BGB §594b). Therefore, project developers usually secure the possibility to extend operations after 20 years if the modules are still profitably generating electricity. As a lessor, you should pay attention to what happens after the contract ends: The "arable status" of the land could be lost after decades of lying fallow. A later grassland conversion may require compensation. This depreciation must be compensated by the lease. Here it helps to seek legal advice early on.

• Lease Amount, Payments, and Indexing: A fair contract should guarantee you competitive lease payments. Usually, annual lease amounts are agreed upon, which are often fixed for 20 years. However, since inflation can reduce the value over such a period, it makes sense to provide for indexing clauses or later adjustments. Some contracts stipulate, for example, that from year 21 the lease is linked to the then-current electricity revenue. Additionally, a share of the facility's revenue can be agreed upon (often 3-6% of revenues) to let you participate in unusually high electricity prices. Also clarify if you prefer a one-time payment – some owners with acute liquidity needs choose a capitalized advance payment instead of annual lease payments.

• Dismantling and Security: It's important to have clear regulations about who is responsible for dismantling the facility after the contract ends. Usually, the operator commits to completely removing the PV systems and restoring the land to its original condition. Have them provide security (guarantee) for this – this ensures that money is available for dismantling even in case of insolvency. In some cases, it can be interesting to give the owner an option to take over the facility free of charge after 30 years and continue operating it. This must be explicitly agreed upon in the contract but offers an exciting alternative to demolition if the technology is still usable then.

• Land Register Entry and Usage Rights: The project developer will have a easement entered in the land register to secure their investment (right to use the area for PV). Make sure this is time-limited (maximum until contract end + dismantling). Before signing, check that no other land register entry conflicts with this (first rank for the easement is ideal). Such an entry is common and protects both sides but should not excessively restrict your rights of disposal.

• Tax and Legal Pitfalls: PV leasing can have implications for property tax and especially for inheritance and gift tax. Since leased areas may no longer qualify as privileged agricultural assets under certain circumstances, higher taxes may be due in case of inheritance. This problem can often be solved by having the owner participate minimally (e.g., 1%) in the solar park. Such constructs should be discussed with a tax advisor. Generally: always seek expert advice early for long contract commitments to avoid nasty surprises.

• Other: Additional points in a fair contract might include termination clauses if construction doesn't begin. Projects in external areas usually first need a development plan and various permits. It can happen that a project fails or is delayed for years. To prevent your land from being blocked unused, it should be agreed that you receive an annual reservation premium, for example, as long as the facility is not yet operational. This creates an incentive for the project developer to implement the project quickly. It should also be clearly regulated which uses remain allowed (often the lessor may continue to use the area agriculturally until construction begins).

As you can see, photovoltaic lease contracts are more complex than conventional agricultural leases. Don't be guided by high payments alone, but examine offers thoroughly. Best get comparative offers and use independent platforms like Enlapa to compare different project developers. With a balanced contract, both sides benefit in the end – you as lessor receive attractive, secure returns, and the lessee can successfully operate the project.

Conclusion: Leasing land for photovoltaics in 2026 is a win-win situation with great potential. High lease income, long-term security, and contribution to climate protection speak in favor. Important are careful partner and contract selection as well as awareness of long-term implications. If all this is considered, you as a property owner can profitably use solar energy on your land – entirely in the sense of Energy, Land and Lease (ENLAPA).

(See also: Lease Land for Solar Systems, Step by Step, a guide on how to proceed with solar leasing in practice.)