037: Passive Income from Wind Energy (What No One Is Talking About)

passive income from wind turbines

Over the past year, I've become a lot more interested in finding legitimate ways to create sources of income from vacant land that are truly passive.

Now, to the average real estate investor, the words “passive income” and “vacant land” do NOT go together, but if you know where to look and how to find these kinds of properties, there are actually a lot of opportunities out there.

RELATED: 7 Ways to Make $1,000 Per Month from Land

One such opportunity is to invest in land that is leased out to the owner of a wind farm development.

Essentially, the landowner can earn revenue from the lease (which typically lasts for 35 years or longer) and collect a small percentage of the royalties from the energy that is generated and sent into the power grid.

Depending on the size of the wind farm project, it's not uncommon for these leases and royalties to produce anywhere from $20,000 – $50,000 for the landowner. And the landowner doesn't have to do anything. They simply own the dirt and collect the money each year.

Sounds pretty simple, right?

Well… there's A LOT more to the story. In this episode – I talk with Tao Kong (COO of Alcen Renewable) and we uncover a lot of the details behind how wind energy leases work, what kinds of properties make the most sense for this type of development, what markets make the most sense to start looking in (and which ones to avoid), and a lot more.

This was one of the most interesting conversations I've had in a long time, and if you have any interest in passive income, land investing or renewable energy, I think you'll enjoy it too.

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About the author

Seth Williams is a land investor and residential income property owner, with hundreds of closed transactions and nearly a decade of experience in the commercial real estate banking industry. He is also the Founder of REtipster.com - a real estate investing blog that offers real world guidance for part-time real estate investors.

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  1. Linda says:

    Hi Seth:

    thanks for this information. While researching land for a tiny home, I became interested in purchasing land for renewable energy, however, have run into nothing but dead ends. Contacted a few companies but got no response from any of them. From what I can learn, the companies reach out to you if interested in your land, but my question is if you are a landowner how do you get on their radar? Can you provide other resources for persons interested in purchasing land for renewable energy?

    1. That’s a great question Linda. I bet if you contacted Alcen Renewable, they might have some insights worth considering.

      My takeaway from this conversation was basically the same thing you found… making a wind energy farm work (at this point, anyway) is FAR easier said than done. There are a lot of variables that need to line up perfectly, and someone has to invest a ton of money in order to make everything come to fruition (doesn’t mean you need to be the one dumping the money into the project, but someone with the means needs to be convinced it’s a worthwhile investment).

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