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    5 Questions to Ask Before Choosing a Solar Developer

    4 min read

    Not all solar developers are equal. Here are the questions that separate serious, reputable companies from those you should avoid.

    Maryland landowner meeting with solar developer to discuss lease agreement

    1. How Many Maryland Solar Projects Have You Completed?

    Not just developed—actually built and operating. Ask for:

    • Specific Maryland project names and locations
    • Megawatt capacity of completed projects
    • References from Maryland landowners with operational projects

    Why this matters: Solar development has a high failure rate. Many developers sign leases but never break ground. Maryland-specific experience means they understand our counties' zoning processes, our utility interconnection procedures, and our environmental review requirements.

    Red flag: Developers who only cite projects in other states or can't provide references from landowners with operational facilities. Having a few Maryland projects under development is fine for a newer company, but they should have completed projects somewhere.

    2. What's Your Realistic Timeline to Commercial Operation?

    Ask them to break it down:

    • Interconnection application and approval: X months
    • Permitting and zoning approvals: X months
    • Financial closing and construction start: X months
    • Construction duration: X months

    Reality check: Maryland solar projects typically take 24-48 months from lease signing to operation. Anyone promising less than 18 months is either inexperienced or misleading you.

    Why this matters: During development, you're getting option payments (typically $50-$200/acre/year) instead of full lease payments ($800-$1,500/acre/year). Extended development periods cost you money.

    Red flag: Vague timelines like "as soon as possible" or unrealistic promises like "operational in 12 months." Also watch for option periods exceeding 5 years—that's too long without adequate compensation.

    3. Who Actually Owns and Operates the Solar Farm?

    Important distinction: Some companies develop projects then sell them to operators. Others build and operate. Ask:

    • Will you own and operate this facility long-term?
    • If not, when do you typically sell projects?
    • What happens to my lease if you sell the project?
    • Do I have any approval rights over who buys it?

    Why this matters: Your lease might be with a developer who sells the project to an operator you've never met. Understanding this upfront helps you negotiate appropriate protections.

    Not necessarily a red flag: Project sales are common in solar development. But you should know it might happen and ensure your lease includes operator standards that any future owner must meet.

    4. What Happens If the Project Fails to Reach Commercial Operation?

    Direct question: "What percentage of your projects fail to get built?"

    Then ask about your lease terms:

    • Can you terminate the lease if development milestones aren't met?
    • What are those specific milestones and deadlines?
    • Do I keep all option payments if the project doesn't proceed?
    • What happens to any infrastructure already installed?

    Why this matters: Your property is tied up during the option period. If the project fails, you've missed years of potential income from other solar developers or alternative uses.

    Red flag: Leases without clear development milestones or without landowner termination rights if progress isn't made. Also watch for provisions that extend option periods indefinitely.

    5. How Is Decommissioning Guaranteed?

    Critical question at the end of the 25-35 year project life:

    • Who pays for decommissioning?
    • What's the decommissioning cost estimate?
    • How is that cost secured (bond, letter of credit, escrow)?
    • Is the security in place before construction or later?
    • What gets removed vs. what stays?

    Why this matters: You don't want to be left with an abandoned solar farm and no money to remove it. Proper decommissioning costs $50,000-$150,000 per megawatt.

    Maryland context: Some Maryland counties now require decommissioning plans as part of permitting. But county requirements vary, and they may not fully protect you.

    Red flag: Vague language about decommissioning "if economically feasible" or security that isn't established until late in project life. Also watch for developers who claim equipment has salvage value covering removal—this is rarely true.

    Bonus Question: Can You Explain the Lease Economics Simply?

    A good developer should be able to explain clearly:

    • How they calculated your specific lease rate
    • Why your property commands the rate they're offering
    • How their rate compares to market rates in your county
    • What escalation clause is included and why

    If you can't understand their explanation, either they're not communicating well or they're being deliberately opaque. Either way, not a good sign.

    Matrix Solar's Track Record

    We're happy to answer all five questions (and more) about our Maryland projects. We've completed multiple utility-scale solar installations in Maryland and have landowner references ready to share.

    Talk with Our Team

    Get Professional Legal Review

    Final advice: Have an attorney experienced in solar leases review any agreement before signing. Yes, it costs money upfront, but it can save you tens of thousands of dollars and major headaches down the road.

    The developer may say their lease is "standard" or "already landowner-friendly." Maybe it is. But you're committing your property for 30+ years. Get independent legal review.

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