Friday, June 11, 2010

Federal Leasing Rates for Solar

The BLM has released their leasing rates for solar installations built on federal land here in Arizona. It is a two part tariff. There is a basic rate for using the land which gets paid every year. The second part is a Megawatt Capacity Fee that gets phased in over the first 5 years of the plant's production.

The base rate goes from a low of $15.70 per acre in Pima county to a high of $313.88 in Yuma county. I have no idea why it is so high in Yuma county.



Anonymous Coyote said...

I have two guesses.
1. Yuma has, I believe, the highest total solar incidence of any area in Arizona and nearly in the whole world, so it is probably the best solar site. But this may not explain it unless the land lease is a very small part of the total lease since the difference between Yuma and other places is incremental rather than huge

2. The BLM land in Yuma generates a lot of revenue in the winter as a residence, mainly in Jan and Feb, for a lot of RV'ers. Quartzite is the center of the RV scene in this time, but it stretches all up and down the Colorado River. So another explanation might be that BLM land in Yuma already has income so the opportunity cost is higher.

June 11, 2010 at 1:25:00 PM MST  

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