Guide
Lease your land for solar vs build your own plant
Two very different returns from the same acre. Which one fits you?
If you own land near a substation, you have two very different options: lease it for passive rent, or build (or co-invest in) a plant for far higher returns with more involvement. Here is the honest trade-off.
01
Leasing: passive, lower return
Private solar lease in Gujarat runs roughly ₹25,000–50,000 per acre per year on a 25–30 year tenure with periodic escalation. Zero capital, zero operational risk — but the developer keeps the upside.
02
Building: active, higher return
Owning the plant on the same land earns the full generation revenue — materially more per acre than rent — but needs capital, financing and execution. For many landowners the right answer is a structured co-investment, which we can arrange.
Frequently Asked Questions
Private agricultural land typically leases for ₹25,000–50,000 per acre per year for solar, depending on substation proximity and land quality, on a long 25–30 year lease. Government wasteland is allotted at ₹15,000/hectare/year.
More guides
How to choose a solar EPC company in Gujarat (without getting burned) →The hidden costs EPCs leave out of the per-MW quote →10 red flags in a solar EPC contract →Is a solar farm actually profitable in India? An honest answer →What ₹5–10 crore builds in Gujarat solar →7 risks to weigh before you invest in a solar plant →How to set up a solar power plant in Gujarat (step by step) →Buying or leasing land for solar in Gujarat (and the NA trap) →What solar O&M actually costs per MW in India →How to negotiate a solar EPC quote (a buyer’s playbook) →Solar approvals in Gujarat: the complete checklist & timeline →How solar project finance works in India (IREDA & banks) →