Solar Farm Decommissioning in Maryland: Complete Landowner Protection Guide

What happens when a 25-year solar lease ends? This critical question concerns every Maryland landowner considering solar development. Decommissioning - the process of removing solar equipment and restoring land - is one of the most important yet least understood aspects of solar leases. Without proper protections, landowners could face millions of dollars in removal costs or be left with abandoned equipment. This comprehensive guide explains Maryland's decommissioning requirements, typical removal costs, financial assurance mechanisms, lease provisions you must negotiate, and how to ensure your land is fully restored when the solar farm reaches end of life.

What is Solar Farm Decommissioning?

Decommissioning is the process of removing solar equipment and restoring land to its original (or improved) condition at the end of a project's operational life. Most solar farms operate for 25-35 years before equipment reaches end-of-life. At that point, all solar panels, racking systems, inverters, transformers, electrical equipment, and access roads must be removed, and the land restored for agricultural or other uses.

The decommissioning process involves dismantling and removing approximately 2,000-3,000 solar panels per MW, plus all support structures and electrical infrastructure. When properly executed, the land can immediately return to agricultural production with soil quality equal to or better than pre-solar conditions.

Maryland Decommissioning Requirements

Maryland law and county regulations require comprehensive decommissioning plans and financial assurances before solar farm construction begins. The specific requirements vary by county but share common core elements.

Standard Maryland Decommissioning Plan Components:

• Detailed removal methodology - Step-by-step process for dismantling all equipment
• Site restoration procedures - Land grading, soil amendments, vegetation restoration
• Waste disposal plans - Recycling and disposal methods for all materials
• Timeline estimates - Expected duration of decommissioning activities
• Equipment salvage value - Projected revenue from recycled materials
• Total cost estimate - Comprehensive financial projection

Financial Assurance Requirements:

• Decommissioning bond - Most common mechanism, typically $10,000-$20,000 per MW
• Letter of credit - Acceptable alternative in many counties
• Escrow account - Deposits made throughout project life
• Parent company guarantee - Acceptable only for publicly traded companies with strong financials
• Inflation adjustments - Bonds must be updated every 5 years to reflect current costs

Typical Decommissioning Costs for Maryland Solar Farms

Understanding removal costs helps landowners evaluate whether financial assurances are adequate. Cost estimates vary based on system size, equipment type, site conditions, and market factors.

Important: For a typical 50 MW Maryland solar farm, total decommissioning costs range from $1.35 million to $2.25 million. Counties typically require bonds at the higher end of this range to ensure adequate coverage even if salvage values decline.

Critical Lease Provisions for Landowner Protection

Your lease agreement is your primary protection against decommissioning risks. Certain provisions are essential to ensure complete equipment removal and land restoration at no cost to you.

Essential Decommissioning Lease Terms:

• Unconditional removal obligation - Developer must remove all equipment regardless of project profitability, bankruptcy, or abandonment
• Comprehensive definition of equipment - Must include panels, racking, inverters, transformers, wiring, foundations, access roads, fencing, and any other project infrastructure
• Depth of removal specification - Foundations and pilings must be removed to at least 36 inches below grade to allow normal agricultural activities
• Restoration standards - Land must be returned to condition suitable for farming, including topsoil replacement, grading, and vegetation establishment
• Timeline requirements - Decommissioning must be completed within 12-18 months of project end-of-life or abandonment
• Financial security requirement - Bond, letter of credit, or escrow in place before construction begins
• Landowner rights on default - You can complete removal using bond proceeds if developer fails to perform
• Regular bond adjustments - Security must be updated every 5 years to reflect inflation and current removal costs

Red Flags in Decommissioning Provisions:

• ⚠️ Removal obligation limited to "economically valuable" equipment
• ⚠️ No financial security until later in project life
• ⚠️ Salvage value used to offset bond amount without recalculation
• ⚠️ Developer may "abandon in place" if removal costs exceed salvage
• ⚠️ Shallow foundation removal (less than 24 inches)
• ⚠️ Vague restoration standards ("reasonable" condition)
• ⚠️ Bond held by developer-controlled entity rather than independent trustee

Maryland County-Specific Decommissioning Requirements

Maryland counties vary significantly in decommissioning requirements. Some mandate comprehensive financial assurance before construction, while others have minimal requirements, placing landowners at risk.

Counties with Strong Decommissioning Requirements:

• Frederick County: Requires detailed decommissioning plan and full bond before building permit issuance
• Baltimore County: Comprehensive restoration plan with independent cost estimate and third-party bond
• Carroll County: Strict removal standards including 36-inch depth requirement for all foundations
• Montgomery County: Requires both decommissioning bond and restoration escrow account

Counties Requiring Enhanced Protections:

• Anne Arundel, Calvert, Charles, Harford, Howard - Basic decommissioning plans required but landowners should negotiate stronger lease provisions
• Caroline, Dorchester, Somerset - Minimal county requirements mean lease provisions are critical for protection

Decommissioning Process Timeline

Understanding the decommissioning process helps landowners know what to expect when a solar project reaches end-of-life.

Typical Decommissioning Sequence:

1. Notice of Decommissioning (Year 24-25): Developer notifies landowner and county of project end-of-life plans
2. Disconnection (Month 1-2): System disconnected from grid, all electricity generation ceases
3. Panel and Equipment Removal (Month 2-6): Solar panels, inverters, wiring, and transformers removed and sorted for recycling or disposal
4. Foundation Removal (Month 4-8): Racking foundations, pilings, and concrete pads excavated and removed
5. Infrastructure Removal (Month 6-10): Access roads, fencing, and remaining structures dismantled
6. Site Restoration (Month 8-12): Land graded, topsoil replaced, soil amendments applied, and vegetation established
7. Final Inspection (Month 12-18): County and landowner verify complete restoration before releasing bond

What Happens if Developer Defaults?

Developer bankruptcy, project abandonment, or financial failure can occur. Strong lease provisions and proper financial assurance protect landowners in these scenarios.

Landowner Rights on Developer Default:

• Access bond proceeds directly: Lease should allow landowner to claim bond without developer involvement after specified default period (typically 90 days)
• Hire contractors for removal: Landowner can select removal contractor using bond funds
• Keep excess funds: Any bond proceeds remaining after removal should belong to landowner as damages for default
• File mechanics liens: Additional protection if bond is insufficient

Environmental Considerations in Decommissioning

Proper decommissioning includes responsible handling of solar equipment and materials.

Material Recycling and Disposal:

• Solar panels: 90%+ recyclable, including glass, aluminum, and silicon - sent to specialized recycling facilities
• Steel racking: 100% recyclable steel recovered through scrap metal recyclers
• Inverters and transformers: Copper and aluminum recovered, electronic waste properly disposed
• Concrete foundations: Crushed and reused as aggregate or disposed at approved facilities
• Wiring: Copper recovered through recycling

Responsible developers work with certified recyclers to maximize material recovery and minimize landfill waste, often achieving 95%+ diversion from landfills.

Soil Health After Solar Decommissioning

Many landowners worry that 25-30 years of solar will degrade soil. Research and practical experience show the opposite - solar farms often improve soil health.

Soil Benefits from Solar Land Use:

• Reduced compaction: No heavy farm equipment for decades allows soil structure recovery
• Increased organic matter: Vegetative ground cover adds organic material annually
• Improved water infiltration: Better soil structure increases water retention
• No chemical inputs: Decades without pesticides and fertilizers allows soil biology to recover
• Erosion prevention: Continuous ground cover prevents topsoil loss

Research Finding: Studies of decommissioned solar sites show soil organic matter increases by 20-40% after 25 years under solar panels compared to conventionally farmed adjacent land, with improved soil health metrics across all parameters.

Questions to Ask Before Signing a Solar Lease

Protect yourself by asking these critical questions about decommissioning before signing any lease agreement:

1. What exactly is included in the definition of equipment that must be removed?
2. How deep will foundations and pilings be removed?
3. What type of financial assurance is required, and when must it be in place?
4. How often is the decommissioning cost estimate updated?
5. Who holds the bond or letter of credit - an independent third party or the developer?
6. What happens if the developer files bankruptcy before decommissioning is complete?
7. Do I have the right to complete removal myself using bond proceeds if the developer defaults?
8. What restoration standards must be met before I release the developer from obligations?
9. Is the decommissioning obligation absolute, or does it contain exceptions?
10. What recourse do I have if decommissioning is not completed on time?