By Shelby Shank
Field Editor

Solar energy is rapidly growing across the U.S., marking a significant shift in how electricity is generated and consumed.

Over the last decade, solar energy production has grown by an average of 25% per year, and installation costs have dropped more than 40%, according to the Solar Energy Industries Association (SEIA).

The SEIA, which tracks trends in the solar industry, reports that as of June 2024, 200 gigawatts (GW) of solar energy have been installed across the U.S., generating enough power for 36 million homes.

In 2023, solar accounted for 55% of all new electricity generation capacity, and by the first quarter of 2024, it surged to 75%.

The expansion of solar energy has been financially aided by federal policies and incentives, like the Infrastructure Investment and Jobs Act, the Inflation Reduction Act and solar investment tax credits. These initiatives, combined with declining costs, have made solar energy more accessible and attractive.

In a study from the U.S. Department of Energy (DOE), solar energy is forecast to rise from 4% of America’s total energy production to 45% by 2050. This would potentially require nearly 10.4 million acres of land for solar production—an area almost 30% larger than the state of Maryland. DOE expects 90% of the projected expansion to be from utility-scale projects in rural communities.

Impact on ag land
Agricultural land is popular for solar installations, because it is typically land than is clear, dry and relatively flat. The construction costs also are lower on these lands compared to other types of land.

In May 2024, the U.S. Department of Agriculture’s (USDA) Economic Research Service (ERS) reported 43% of solar installations were on land previously used for crop production and 21% on land used as pasture or rangeland between 2009 and 2020.

ERS estimated solar’s footprint as of 2020 at 336,000 acres of rural land. But solar capacity has more than doubled since 2020. It’s estimated that almost 1.25 million acres of U.S. farmland have been converted for solar use, representing 0.14% of the total 879 million acres of U.S. farmland.

As solar development in rural areas increases, the demand for land rises, driving up values and rental prices. While this presents financial opportunity to landowners, it also poses challenges for farmers.

A recent survey by the Purdue Ag Economy Barometer found 16% of farmers had discussed a solar leasing project with a company within the past six months. This is an increase from 12% in March but also a decline from 20% in May. Of those surveyed, 69% were offered annual lease rates of over $1,000 per acre, and 27% were offered over $1,500 per acre.

The construction of solar facilities on any land area requires clearing and grading, which can result in soil compaction, potential changes in drainage channels and increase runoff and erosion. This raises concerns on the impact solar has on agricultural productivity and the environment.

Transmission corridors
Transmission lines are used to move power from where it is generated to where it is used.

There are currently three major regions for transmission lines: the Eastern Interconnection, the Western Interconnection and the ERCOT (Texas) Interconnection.

Some foreseeable challenges with increasing solar in rural communities are the list of energy projects awaiting connection to the power grid and upgrading transmission infrastructure to support renewable energy.

But the construction of a new transmission line can cause disruptions to agricultural operations and prevent farmers from planting and harvesting crops and ranchers from raising their livestock.

DOE proposed a list of 10 potential National Interest Electric Transmission Corridors, areas of the country where the agency has deemed consumers are harmed by the “lack of adequate transmission” and the development of a new transmission would advance “important national interests.”

If implemented, the new corridors would impact 21 states through easing acquisition of private property through eminent domain for the new transmission line projects.

Adding agriculture to solar
Developments in agrivoltaics could provide an option for both solar and agriculture on the same land.

Currently, these projects often consist of sheep grazing, but research is being conducted to incorporate cattle grazing and crop production.

Another practice, ecovoltaics, incorporates pollinator habits alongside solar projects. It is defined as a combined system of energy production and ecosystem services.

Texas Farm Bureau policy
The solar industry continues to grow at a rapid pace in Texas without a governing agency.

Texas Farm Bureau (TFB) policy adopted by voting delegates supports the Texas Commission on Environmental Quality to develop rules and regulations governing the location of solar facilities and solar battery storage facilities.

TFB also supports the Texas river authorities to have knowledge of the locations of any solar facility and/or solar battery storage and to work with the state to develop rules and regulations for the development of solar facilities.