On paper, Renewa’s offer looks to be less than what you could make over the term of your lease by holding on to your annual payments. However, your lease gives the operator the right to shut down the project at any time. Another important factor to consider, inflation is currently at a 40-year high. Royalty escalation rates in renewable energy ground leases typically do not outpace the expected rate of inflation. Over the life of the lease, taxes and inflation can reduce the purchasing power of your rental payments by over 50%.

See other reasons to sell