In Germany – we are able to find roofs on large apartments in East Germany for about € 1.00 / m² / year. However, by offering to pay the full 20-year lease in advance, we can usually negotiate even lower rental costs. 15 – 25 years is the standard lifespan for a solar lease. The longevity of this commitment should be carefully weighed when evaluating whether it makes sense to rent your roof for a solar installation or not. YSG has a model roof rental agreement that we share with others. Do not hesitate to contact us for more information and we will gladly provide you with the model roof rental agreement that you can check. As with any lease agreement, the tenant may require the lessor to enter into agreements with each of its lenders, the lender to allow the tenant to remain in possession of the leased roof, etc. regardless of any delay of the lessor in the context of the mortgage and will agree to recognize the lease and the rights of the tenant. Freedom Energy rents the roof and exploits the sun. The ownership, design, installation and maintenance costs of the solar installation are borne by Freedom Energy for the duration of the agreement.

Freedom Energy will sell the energy to energy retailers through the existing off-take PPA agreement. Alternatively, tenants have the option to purchase the electricity produced at discounted grid electricity rates. To produce electricity from the sun, you of course need a place to install your solar panels. In Europe, feed-in tariffs are usually structured so that a higher amount is paid per kWh of electricity produced. This has not only encouraged homeowners to install solar panels on their roofs – but also owners of large buildings, churches, governments and even the military are installing solar panels on their property. In a typical lease agreement, the solar energy produced by the built facility can be consumed on-site or reinitially in the distribution company`s power grid. The owner of the solar installation identifies one buyer (or several) to consume the energy produced. This buyer can be a business, home owner, organization, refueling company, or municipality that wants the economic and environmental benefits of solar electricity, but does not have the space and/or resources to build its own. The off-taker executes with the owner of the solar installation (as part of a transaction separate from the site lease) an off-site PPA or Net Meter Credit Agreement, in which the off-site taker agrees to purchase the electricity produced by the solar installation. Virtual Net Metering (VNM), a utility-enabled mechanism, allows you to generate solar power in one place and use it elsewhere, making this arrangement easier. Check out our previous blog post which explains in detail the virtual net metering process. If all goes well in the rental option period, the developer may decide to exercise the option and rent the roof for a solar project.

As a rule, the terms of this roof rental agreement have been agreed by both parties and described in the rental agreement. Based on our experience in Germany, the optimal size of the plant is 250 kWh and more. These large photovoltaic installations usually require large amounts of roofing – the exact amount depending on the type of solar modules used (i.e. solar modules with a higher kWp require less space). Note: Roof entrances are directly linked to the FIT rates in force in Europe. When FIT rates go down. The amount a developer is willing to pay to rent the roof also decreases by about the same amount. Many roof rental contracts may seem lucrative at first glance. However, some important facts must be taken into account by the owners before signing on the lines in points and making a commitment of several decades.

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