Is the Appropriate Color of Solar – Green or Yellow? Week 4

Question Number 3:

Over our 45 years of selling land, we have seen a significant variety of “trends”. The hottest, greatest, newest, best-ever items often a decade or so later turn out to be horrible, disastrous, and money pits. So we are cautious.

Some of the literature that we have read about solar farms expresses concern about the hazardous waste that could result from the solar panel structures, the heat, and the chemical reactions that occur. Therefore, one of your four critical questions ought to be what assurances and documentation the solar farm developer can provide to you that prove that your property at the end of the lease will not be a hazardous waste dump.

Hazardous waste dumps and land adjacent to them have little value and are significant liabilities. Perhaps you should read up on the “Superfund Law” passed in 1978 that makes the land owner financially responsible for clean-up of hazardous waste on their land. If the government has to do the clean-up, the government can charge the land owner triple the costs of the clean-up.

It is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long term the best investment is land.