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Solar Lease Payments and Royalties in South Dakota

Quick answer

Buckhead Energy buys solar lease payments and solar royalties. South Dakota has three utility-scale solar plants of at least 1 MW, with 209 MW (AC) of capacity across three counties, according to the U.S. Large-Scale Solar Photovoltaic Database (version 4.0, released April 14, 2026).

Utility-scale solar plants by county in South Dakota

Pennington County and Fall River County have the most utility-scale solar capacity in South Dakota, with 128 MW (AC) and 80 MW (AC).[1]

Utility-scale solar plants in South Dakota came online between 2016 and 2024.[1]

The table lists the two counties with at least 20 MW (AC) in total, each with its own page.[1] Counties with less than 20 MW (AC) in total: Hughes County (1 MW).[1]

CountyPlantsCapacity (MW AC)Online
Pennington County11282024
Fall River County1802023

Source: U.S. Large-Scale Solar Photovoltaic Database (USGS, LBNL), version 4.0, released April 14, 2026. Data compiled November 1, 2026.

How solar leases pay

Federal guidance for farmers describes solar lease payments as typically structured as a fixed annual or monthly fee per acre, or as a percentage of the energy generated by the solar panels.[2] Rent during the operations period will likely include an inflation adjustment, which may be tied to a measure like the Consumer Price Index or set at a fixed rate.[3] Solar lease agreements can last 20 to 30 years.[4]

Solar leases in South Dakota

South Dakota bars severing wind or solar energy rights from the surface estate but allows them to be leased for up to fifty years, with lease payments made annually.[5]

What you sell and what you keep

What Buckhead buys depends on the deal, and Buckhead tells the seller up front which interest it is offering to buy — for example, the payments for the rest of the current lease term, a term easement, or a longer-term interest. Solar rent is paid period by period, the operations period may last 20 years or more, and renewals are at the developer's option.[3] The land can be converted back to agricultural uses at the end of the installation's operational life.[2]

Educational information only — not legal, tax, or investment advice. The figures are public reference data, not a valuation or appraisal of any interest. Consult a qualified attorney, CPA, or landman about your specific situation.

Frequently asked questions

How many utility-scale solar plants are in South Dakota?

South Dakota has three utility-scale solar plants of at least 1 MW, with 209 MW (AC) of capacity across three counties, according to the U.S. Large-Scale Solar Photovoltaic Database (version 4.0, released April 14, 2026).[1]

Which South Dakota counties have the most solar capacity?

By recorded capacity, the leading counties are Pennington County (128 MW AC) and Fall River County (80 MW AC).[1]

Can I sell solar lease payments or royalties in South Dakota?

Buckhead Energy buys solar lease payments and solar royalties. What Buckhead buys depends on the deal, and Buckhead tells the seller up front which interest it is offering to buy — for example, the payments for the rest of the current lease term, a term easement, or a longer-term interest.

When were South Dakota's utility-scale solar plants built?

Of the plants with a recorded year, one came online in the 2010s and two in the 2020s.[1] Solar lease agreements can last 20 to 30 years.[4]

What does South Dakota law say about solar leases?

South Dakota bars severing wind or solar energy rights from the surface estate but allows them to be leased for up to fifty years, with lease payments made annually.[5]

Related pages

Selling Solar Lease Payments and Solar Royalties

Mineral rights in South Dakota

Wind Royalties and Lease Payments in South Dakota

Sources

[1] U.S. Large-Scale Solar Photovoltaic Database (version 4.0, released April 14, 2026) — U.S. Geological Survey and Lawrence Berkeley National Laboratory (accessed November 1, 2026)

[2] Farmer's Guide to Going Solar — U.S. Department of Energy (accessed November 1, 2026)

[3] Farmland Owner's Guide to Solar Leasing — Ohio State University Extension and the National Agricultural Law Center (accessed November 1, 2026)

[4] Solar Lease Considerations for Landowners — Texas A&M AgriLife Extension (accessed November 1, 2026)

[5] South Dakota Codified Laws 43-13-19: Severance of wind or solar energy rights limited — South Dakota Legislature (accessed November 1, 2026)

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