Payments-In-Lieu-of-Taxes (PILOT)

Negotiated payments between the local taxing authority and a wind project. These payments compensate for excessive use of infrastructure in the area while developing the project and allow the local community to benefit from wind energy development. Property taxes and PILOTs contribute a great deal to the tax revenue of many windy rural areas and aid in the development of new schools, community centers, and other local programs. Project developers opt to enter into PILOT contracts in order to be good neighbors to the community, while other areas may require these payments before local authorities grant permission to build.