Aep Owner Agent Agreement

An AEP Owner Agent Agreement: Understanding the Basics

If you are a landowner who wants to participate in the American Electric Power (AEP) Ohio wind and solar projects, then you’d need to sign an AEP owner agent agreement. This article will guide you through the basics of this agreement.

Defining AEP Owner Agent Agreement

Firstly, let’s define what an AEP owner agent agreement is. The AEP owner agent agreement is a legal document that gives AEP the right to develop, construct, operate, maintain, and own wind and solar facilities on your property.

As a landowner, you retain ownership of the land but allow AEP to use it to develop renewable energy projects. Once the wind or solar facility is operational, AEP will pay the landowner rent, which is based on a percentage of the energy generated by the facility.

Understanding the Benefits

Signing an AEP owner agent agreement can be mutually beneficial to both the landowner and AEP. Landowners can benefit from receiving rental payments without any capital investment, while AEP can expand its renewable energy generation portfolio without acquiring land.

Additionally, AEP’s renewable energy projects can attract businesses that prioritize the use of renewable energy in their operations. As a result, landowners who sign the AEP owner agent agreement can potentially attract such businesses to their land, improving economic activity in their community.

Key Terms to Understand

To fully understand the AEP owner agent agreement, you must be familiar with some of the key terms in the contract.

1. Wind and Solar Facilities – means the equipment, structures, and facilities used to generate renewable energy.

2. Rent – refers to the payment made to the landowner based on a percentage of the energy generated by the facility.

3. Term – refers to the length of the agreement.

4. Development Period – the period during which AEP conducts surveys, environmental assessments, and studies that are necessary to determine the feasibility of constructing and operating the wind or solar facility.

5. Abandonment – refers to the failure of AEP to maintain or operate the wind or solar facility for a specific period.

Risks to Consider

As with any agreement, there are certain risks to consider before signing the AEP owner agent agreement. For instance, there is no guarantee that AEP will construct a wind or solar facility, which means that landowners may not receive any rental payments. Additionally, AEP may decide to abandon the project after the development period, leaving the landowner without any rental income.


The AEP owner agent agreement is an excellent opportunity for landowners to earn rental income from renewable energy projects without any capital investment. However, it is important to understand the key terms of the agreement and the risks involved before signing the contract. Always consult with a legal professional before signing any legal document.

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