Land banking and development company Vermaland has leased more than 4,500 acres of land to solar developers in recent months. The activity illustrates a recent surge in demand for solar land in Arizona. In eventual land purchases, these leases could total $40 million.

"There are a lot of factors driving demand for solar right now. There is a huge push for utilities to be obtain energy from renewable sources and solar is a great source," Kuldip Verma, founder and CEO of Vermaland, tells GlobeSt.com. "California has mandated that 50% of their electricity come from renewable sources by 2025 and Arizona has mandated that 15% come from renewable sources by 2025. The location of our properties serve both the California and Arizona market, so solar developers have several viable options to sell the energy they generate to. Furthermore, the prices of producing solar energy have come down significantly over the years making it a low cost alternative for energy."

The recent land leases include 2,000 acres in Gila Bend to a solar developer; 1,600 acres in Hyde; 900 acres in Harquahala Valley; and an additional 1,000 acres that Vermaland already had under lease with solar companies.