Officials in Craven County are suggesting that letters of credit (L/Cs) could help increase the amount of energy produced by solar power in the US state of North Carolina.

Solar farm installations are on the rise in Craven County, but officials there want to make sure that residents, communities and farmers are protected from potential problems that could arise from these facilities.

Rehabilitation costs

Solar power developers are offering to lease farmland for 10 or more years, but do not seem interested in purchasing land.

Craven County Board of Commissioners is concerned that at the end of a lease, with the lifespan of equipment potentially over, the solar companies would walk away and leave the landowner with the task of rehabilitating land.

Guarantee

The board is therefore considering an ordinance requiring solar companies to submit a decommissioning plan and a form of surety equal to 125 per cent of the entire cost of that plan.

Surety could be put up via an irrevocable L/C, cash, a surety performance bond or some other instrument readily convertible into cash at face value.

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