Renewable Energy News
Society’s push for sustainable energy from renewable sources has led to heightened interest in solar energy to replace fossil fuels as a power source for energy creation. Capturing the sun’s energy to generate electricity for human use is not a simple undertaking. In fact, current technology for this capture involves the installation of an array of solar panels, and such installations will necessarily involve converting land from other uses such as agriculture. How this will affect the capacity to produce food in an amount needed to feed the world’s increasing population is up for debate.
Articles titled “Loss of Productive U.S. Farmland to Energy Production” and “Solar Lease Contracts” are posted on this website. Information in these articles provides details about what is involved in solar energy production, and how this might affect the ability to produce crops that would provide an end product that can be consumed or used by humans and food animals. Following are links to articles that provide points to consider when 1) deciding whether or not to install renewable energy power sources [solar panels or wind turbines] on all or part of a farm and 2) negotiating contracts to cover such installations.
In an article titled “Do solar panels add value to your farmstead” by Michael Lauher, the author makes the following points.
• A residential solar system [vs. a community-scale solar farm] powers one home or business.
• The value that a residential solar system adds to a property depends on whether or not the panel array was purchased or leased by the property owner. If the panel array was purchased then it is owned by the person selling the property. If the array was leased, then its addition to the value of the property being sold will depend on 1) whether or not the lease goes with the property that is sold or stays with the person who signed the lease, and 2) who is responsible for maintaining the panels and who owns the panels at the end of the lease.
• Timing of the purchase of solar panels could have an impact on their value in relation to the change in state and federal government programs that are evolving.
• Whether or not a supplier of electricity is regulated by a government agency may also determine the value of a solar array since this will likely result in different compensation schedules for the purchase of excess electricity produced by the solar panel array.
• Any government action that makes compensation schedules and requirements regarding residential solar arrays more uniform among the myriad electricity suppliers will create more certainty in the market which will subsequently contribute to more value.
• In the end, the value of a residential solar array to a farm property being sold will largely depend on the individual installation details.
An article titled “Agrivoltaics: Weighing solar growth and farmland loss” by Andrew Branan offers the following points.
• Agrivoltaics is a new word that means the dual use of land for solar energy production and agriculture. The practices used in this system and relevant laws governing them vary by country.
• An increase in utility-scale solar development on land previously used for agriculture has generated interest in the effect of solar development on farmland loss. Also, this loss of farmland has generated concern over the loss of agricultural output from such land.
• The immediate impact to individual agricultural producers losing their access to leased fields is easily measured in lost production acres. Research on how this affects individual farming communities is in its infancy.
• Since most solar projects are long-term, the promise that one day this converted farmland will again be farmed does not address the short-term effect of such land conversion.
• Once land is converted to solar energy production [i.e. installation of solar panels], options for a continuation of agricultural production on this land are limited to mostly pollinator habitat production [limited economic impact to landowner] and sheep grazing [limited U.S. markets for sheep meat and wool].
• Research to overcome the limitations to agricultural production on solar panel sites should focus on 1) how livestock grazing on these sites affects soil health, carbon sequestration, and water quality, 2) site design requirement [e.g. panel spacing and height] that will allow more diversified agricultural application on these sites, and 3) the socioeconomic impacts to the affected local communities.
An article titled “Wind, solar contracts: Beware the fine print” by Ben Potter offers the following points that landowners should consider when negotiating a contract that will allow renewable energy production [i.e. power generation from wind and solar] on their property.
• Pay attention to contract components such as payment plan for electricity produced, term of the contract, who pays for insurance and taxes, compensation for crop damage during installation, land use allowed once the project is completed, decommissioning terms, and compensation for residual fertility and compaction issues once a project is decommissioned.
• Make sure developers do not leave odd-shaped areas outside the project boundaries.
• Who holds the natural resource rights to the land encompassed by an energy project?
• Ask for references and prior experience with such projects.
In an article titled “Crop and Energy Production Merge in Iowa Project”, author Terri Queck-Matzie provides the following points.
• Solar power may enhance production of the increased amount of energy needed by the world, but its benefit will be limited if it curtails the ability to produce enough food to feed an increasing world population.
• Solar panels do not necessarily disrupt farmland use, but they certainly may affect just what the converted farmland can be used for.
• The above-cited research project seeks to determine just how solar panels may affect growth and development of fruits and vegetables that are planted beneath and among the panels, and conversely, how different types of vegetation may affect the energy production of the panels.
• One of the results of the project may be the determination that varieties specific to the project environment will need to be developed.
• The project will involve specialists from multiple disciplines–e.g. horticulturists, entomologists, economists, environmentalists, sociologists, engineers–that will study the myriad effects from the solar farm installation.
Click here for an article on this website that provides further details about the subject of farmland loss to renewable power generation facilities, and here for an article that provides further details about the contracts that will be a necessary part of the conversion process.
Composed by Larry G. Heatherly, June 2024, larryh91746@gmail.com