Solar Energy Projects: Pros & Cons for Landowners

If you’re a farmer or landowner, you probably know someone who has been approached about solar energy. Maybe you’ve even received inquiries about your property. With solar energy gaining momentum in the United States, now is a good time to consider the pros and cons.

Solar projects represent a number of opportunities, but there’s no one-size-fits-all solution. Let’s take a closer look from a landowner’s perspective.

Pros of Solar Energy for Landowners

Here are a few benefits of using your land for solar energy:

Financial incentives and business continuation: Perhaps the most obvious benefit of agreeing to a solar energy project is financial. As we discussed in our article about the three phases of a solar project, a landowner begins receiving payments after signing a lease option agreement—even if the project never moves forward. If the project materializes, the landowner (or his heirs) can expect to receive predictable income for 30+ years while keeping the land in the family’s name.

Allowing the soil to rest: Most farmers are already familiar with reduced till and no-till. According to the U.S. Department of Agriculture’s Natural Resources Conservation Service, such efforts support plant growth and reduce erosion. Land can rest for multiple decades with solar energy, which, in theory, makes the land even better for farming after the project is over.

Supporting the U.S. energy supply: According to Clean Energy Resources to Meet Data Center Electricity Demand from the U.S. Department of Energy, domestic energy demand is expected to grow by up to 20% in the next ten years and could double by 2050. Solar can help reduce the nation’s dependence on foreign energy while keeping pace with rising demand.

Contributing to local economic growth: Industry is attracted to cost-effective energy. Communities that embrace a variety of energy sources—including solar—strategically position themselves with employers that bring jobs, salaries, benefits, and economic growth.

Cons of Solar Energy for Landowners

Solar energy isn’t right for every landowner. Here are a few potential drawbacks:

Time commitment: One of the biggest drawbacks to solar is the time commitment for landowners. The lease option agreement phase could take up to seven years, construction could require one or two years, and operation usually lasts between 30 and 40 years. In some cases, that’s about a 50 year commitment.

Land commitment: Solar energy projects typically involve hundreds or thousands of acres, which limits the ability to utilize land for farming and other activities. That said, agrivoltaics is an emerging field, as discussed in Agrivoltaics: Solar and Agriculture Co-Location from the U.S. Department of Energy.

Politically charged topic: Unfortunately, solar energy has become a political football, and, like most things in politics, it has the potential to create division between people.

Let’s Discuss the Pros and Cons of Solar

At New Era Land Services, we regularly connect renewable project developers with landowners. Contact us to check for projects in your area.