Can Solar Power Bring Agriculture & Energy Together?

Large-scale solar energy production is developing quickly, and it requires a lot of land. While small-scale solar projects, such as rooftops and parking lots, help with solar energy production, utility-scale solar installations contribute over twice as much total electricity generation, and these installations require land.

The U.S. Department of Energy (DOE) predicts that solar will account for nearly 60% of all new utility-scale electricity-generating capacity installed in 2024. To shift the nation’s energy reliance from fossil fuels to solar power and meet current “clean energy” goals, there must be a 40% increase in solar energy production by 2035, which would require the use of 5.7 million acres of land. Currently, over 80% of new solar projects are installed on farms and ranchland, with nearly half placed on the most productive, versatile, and resilient land.

As the nation races to adopt and expand solar energy, how solar energy is rolled out will have a significant impact on agricultural production and land use. Arizona, which ranks fifth in the nation for solar energy capacity, is an important testing ground.

Growing Energy Needs … and Its Impacts

In 2023, photovoltaic energy accounted for 5.5% of total US electricity generation. That was up from 4.7% in 2022 and about 3% in 2020. Utility-scale solar (large solar installations) contributed over twice as much of total electricity generation compared to small-scale solar (such as rooftops and parking lots).

According to the DOE’s Solar Futures Study of 2021, solar energy production will need to provide nearly half of the US’s electricity needs by 2050. This will require up to 10.3 million acres of land. That’s more land than the states of Maryland, Vermont, New Hampshire, Massachusetts or New Jersey, or the combined landmass of Hawaii, Connecticut, Delaware, and Rhode Island.

So, where will all this land come from? One land resource that is being affected by large-scale solar projects is farmland. The nation is seeing alarmingly high instances of prime farmland being taken out of production or subdivided by solar panel installations. The type of land that is appealing for solar energy projects is also attractive for agricultue: flat, sun-exposed, and permeable ground that is typically located in rural areas far away from population centers that might oppose a project yet relatively close to existing power transmission lines.

Additionally, up to a third of potential solar development could overlap with areas that have high value for wildlife movement, according to one study. Loss of habitat is the number one driver in the staggering decline of biodiversity worldwide. The impacts associated with utility-scale solar energy can also be exacerbated in arid landscapes, like Arizona, where plant and wildlife communities are especially sensitive to disturbances. The race to increase solar energy production, set to be the fastest-growing energy source in the United States, will be fencing off millions of acres across the US and this can dramatically restrict wildlife’s access to their native environments, food sources, and mating grounds.

The rush of new solar array projects being constructed throughout US states is also accelerating the destruction of forests. Maps that track solar array developments, such as this one developed by researchers from Clark University in Massachusetts, reveal that the number of acres cleared for solar is higher than the state’s initial projection, with about half in places that were formerly forest and about a quarter in former cropland.

Some of the damaging effects of solar developments can be mitigated through intentional collaboration and planning between producers and solar developers and the use of wildlife-friendly fencing and wildlife migration corridors, but most solar projects do not take these approaches, as they can be more costly and take more time. Eighty percent of states rely on voluntary approaches to minimize impacts to species and habitat. Yet, as solar development speeds ahead, the decisions made today will have generational implications.

How Energy Development and Food Production Can Coexist

Faced with the reality of solar energy – and land – requirements, innovative ways are being developed to co-locate electricity production alongside agricultural production.

Agrivoltaics

Agrivoltaics is a combination of two words: agriculture and photovoltaics. It allows for renewable energy systems and agriculture production to share the same piece of land. Agrivoltaics involves growing crops, building pollinator habitats, or raising livestock underneath solar panels. The dual-use land management approach means that society may be able to receive as much benefit from the land as possible.

Several co-benefits of growing crops under solar panels is that shaded plants need less water, the shade protects crops from receiving extreme or excessive heat, and some vegetables can double or triple in production. Additionally, as vegetation transpires it creates humidity, which helps cool the panels. When solar panels are cooler, this increases the efficiency of energy production by as much as 10%. The solar panels will also have a longer lifespan since they are not overheating as they would if placed on barren land. Owners of solar installations can also lower their operational costs by grazing livestock that remove the need for maintenance like regular mowing.

As of March 2023, the National Renewable Energy Laboratory has identified 314 agrivoltaic projects in the United States representing over 2.8GW of solar capacity, or enough energy to power over 2 million homes.

The progress for agrivoltaics can be slow or impeded due to costs, power transmission infrastructure, solar development pressure, and time needed to navigate the permitting and regulatory requirements. However, studies estimate that covering less than 1% of the world’s cropland with solar panels would generate enough energy for the world’s present electricity demands. Agrivoltaics is a promising solution.

Smart Solar

The largest impact that large-scale solar development is currently having on farmers and farmland is displacement. Smart Solar, an initiative developed by American Farmland Trust (AFT), focuses on keeping farmland in production while also contributing to renewable energy needs and providing an additional revenue stream for farmers. One of Smart Solar’s principles is to prioritize solar panels placed not on land well-suited for farming, but in the built environment, concentrated on rooftops, irrigation ditches, brownfields, and marginal lands.

Smart Solar promotes solar projects that meet three equally important goals: (1) accelerating solar energy development, (2) strengthening farm viability, and (3) safeguarding land well-suited for farming and ranching. The approach guides solar development so it has the least negative impact on prime farmland, ensuring that agricultural land used for their projects can be farmed in the future.

AFT engages farmers, landowners, solar companies, conservation groups, public officials and others to inform decisions, assist with Smart Solar projects, and advance policies that support the approach. AFT recently released a suite of policy recommendations for all levels of government that will protect farmland, farm viability, rural economies, and agricultural land access while accelerating the development of solar to address climate change.

Micro Solar Leases

For some farmers and ranchers, the idea of leasing some of their land for solar projects is appealing both financially and morally. It could bring in a passive revenue stream for the farm business while helping to mitigate climate risks for the future.

Solar developers often outcompete farmers for prime farmland or offer working farmers large sums of money to take their land out of production. Some contend that if agricultural landowners can benefit from having micro-solar leases on some of their land, this will increase the chance that farmers can keep the rest of it in agriculture rather than sell the entire property to a developer.

Rural Energy for America Program

The Rural Energy for America Program (REAP) offers federal grants and loans to help agricultural producers implement renewable energy installations and efficiency updates on farms. All agricultural businesses may apply, even if they are not located in a rural area. Types of projects vary from adding solar panels to a barn, updating refrigeration to a more efficient system, or energy intensive operations like processing and washing/packing.

REAP provides grant funding for farmers looking to reduce their energy costs, potentially generate new income, and strengthen the resiliency of their operations. REAP grants can cover up to 25% or 50% of total eligible project costs and can be combined with the Federal Solar Investment Tax Credit, which provides a 30% base tax credit for solar installations. REAP recipients can, therefore, potentially have 80% of a solar project paid for by the federal government in one year.

Applications for REAP are accepted on a year-round basis at the state’s local USDA office but are typically reviewed in the fall and spring. Local First Arizona is also providing technical support and assistance with REAP applications; please reach out to donya@localfirstaz.com to get started.

The Future of Solar Power

Solar energy production is not unique in how it exacts a toll on land use, agriculture, and animals, but the rate at which it’s rolling out is. Solar power is scaling up to levels that make it central to a renewable energy transition. Will there be a clash between the needs to feed and power a growing population, or will taking thoughtful and innovative approaches to meeting the nation’s energy and food demands make room for both?

Some advocate for taking an ecovoltatic approach to solar power – or co-prioritizing ecosystem services and energy generation to create multiple benefits for climate, biodiversity, and the restoration of degraded lands. Other renewable energy proponents argue that restricting or slowing solar development will prolong dependence on fossil fuels, making the climate crisis worse.

Ultimately, millions of acres of diverse and food-producing landscapes – which, in turn, also help mitigate climate change – are hurriedly being converted to solar installations, which could worsen the decline in biodiversity and create a food crisis. Solar energy development and the policies that shape it should proceed in a way that reflects – and responds to – these realities.