Solar Energy Expansion in Rural Communities

Solar’s Growth

Alternative energy sources such as wind, geothermal, hydro, and solar have gained popularity in reducing greenhouse gas emissions and decentralizing power production. Solar energy, which converts energy from the sun into thermal or electrical power, is rapidly expanding worldwide. However, it is important to consider both the benefits and drawbacks of solar energy.

According to the Solar Energy Industries Association, solar energy production has grown by an average of 25% per year over the last decade. Additionally, installation costs have dropped by more than 40%. The Department of Energy predicts that solar energy will account for 45% of the nation’s total energy production by 2050, requiring approximately 10.4 million acres of land for solar production. It is expected that 90% of this solar development will come from utility-scale projects in rural communities.

Solar on Farmland

While solar development will be distributed nationwide, large utility-scale projects will be concentrated in areas with favorable siting and interconnection opportunities. Farmland, which often meets the necessary criteria for solar power facilities, is an ideal location due to its clear, dry, and relatively flat characteristics. Moreover, farmland has lower construction costs compared to other types of land.

Solar energy leasing provides an opportunity for farmers to diversify their income. However, this can also lead to increased land competition and higher rental prices, which can be a burden for farm operators, especially considering that more than half of cropland is rented. Concerns have also been raised regarding the “nonmonetary impacts” of solar energy leases, such as changes in land use from agricultural to industrial purposes.

Advancing Agriculture-Friendly Solar

Despite the challenges, there are encouraging developments that promote sustainability for both the agriculture and solar energy industries. Agrivoltaics, the co-location of agricultural production and solar energy generation on the same land, is gaining traction. Currently, these projects often involve sheep grazing, but research is being conducted to incorporate cattle grazing and crop production.

According to the National Renewable Energy Laboratory’s agrivoltaics map, a significant number of projects do not list agricultural output as an outcome. Instead, they focus on incorporating pollinator or native grass habitats. A new term, ecovoltaics, better describes solar projects that integrate pollinator habitats and define a combined system of energy production and ecosystem services.

Takeaways

The United States is experiencing rapid development in its energy system, with a shift towards low-carbon, renewable sources to meet increasing electricity demand. Solar energy is at the forefront of this transition, with significant development occurring on farmland and in rural communities. While solar energy presents financial opportunities for landowners, it also poses challenges for farmer renters and the next generation.

It is crucial to prioritize the preservation of agricultural land as we pursue clean energy solutions. The expansion of solar energy should be carefully planned to avoid decommissioning productive agricultural lands. The goal is not whether we have solar energy production, but rather where and how we implement it.

Betty Resnick is an economist and Arica Hamilton is a public policy analyst at the American Farm Bureau Federation. This column was adapted from a Market Intel published by AFBF.