6 Steps to Identify Land for Renewable Energy Projects

Jul 9

Data from the U.S. Energy Information Administration’s Short-Term Energy Outlook (STEO, January 2024) anticipates continued growth of energy generation from renewable sources. In fact, the agency projects that solar power generation in the United States will grow by 75% from 2023 to 2025.

Keeping pace with increased demand for renewables means that developers need effective strategies for identifying land to house solar panels, wind turbines, and battery storage facilities. At New Era Land Services LLC, we recommend the following steps.

Step 1: Identify a General Area of Interest

Determining a general area of interest usually involves a number of factors, such as the project developer’s existing portfolio and overall business strategy. Depending on the project’s size, a general area of interest could include multiple adjoining states or just a handful of counties within a specific region.

Step 2: Look for Section 48C Tax Credits

Tax credit availability is a major consideration when deciding where to locate a renewable energy project. Project developers are typically interested in the Qualifying Advanced Energy Project Credit (also known as the “48C tax credit”). The U.S. Department of Energy’s website offers a helpful overview guide, which includes an explanation of 48C Energy Communities Census Tracts. The “Section 48C Tax Credits - Designated Energy Communities” mapping tool (also provided by the U.S. Department of Energy) simplifies research for developers.

Step 3: Overlay Transmission Lines and Substation Locations

After narrowing down the area of interest based on tax credit considerations, it’s a smart idea to overlay existing transmission lines and substation locations. Obtaining a tax credit can be financially beneficial, but such gains are quickly eroded when an area lacks necessary infrastructure. After all, building a new substation could cost tens of millions of dollars.

Step 4: Check ISOs/RTOs for Nearby Projects

Most utility-scale renewable projects go through a multi-year queue that’s overseen by an ISO (Independent System Operator) or RTO (Regional Transmission Organization). Understanding what’s already in the queue is essential for successful project planning.

Step 5: Perform Local Courthouse Research

Once an area has been deemed potentially viable, it’s wise to perform additional research at the courthouse level (or, in some cases, online). Checking recorded memos and options for solar, wind, and other renewable projects helps further refine the location. Contact our team at New Era Land Services for help with this step.

Step 6: Select the Ideal Location

By now, you’ll hopefully be in a position to pick the best location for your renewable project—one that balances the need for tax credits, infrastructure, and leasable land. Throughout the entire process, it’s vital to use common sense when making land-related decisions. Generally speaking, land near high-growth metropolitan areas tends to be more expensive than land in rural areas.

Questions? Contact Our Land Pros

New Era Land Services provides land services for renewable energy projects. We can advise you throughout the entire process and offer on-the-ground support, including landowner engagement and lease acquisition services.

New Era Team