Related to advancements in the growing development of renewable energy, support for and consideration of the agricultural sector and communities is critical. To avoid issues of land loss or habitat fragmentation, the balancing of relevant interests and needs of affected communities might require the implementation of proactive strategies to protect farmland and undeveloped land. Agrivoltaics, also known as dual-use solar, active farming, and an example of low-impact solar development, is one such strategy in which farming and renewable energy generation occur on the same land. Currently, the majority of agrivoltaics systems in the United States are comprised of grasses or other low-maintenance, pollinator-friendly vegetation growing beneath solar panels. However, these systems present multiple opportunities for successful co-location, including the development of sites with sheep grazing and solar panels or crops growing beneath solar panels.
A report published by the Tennessee Advisory Commission on Intergovernmental Relations (“TACIR”) found that, with proper planning and execution, the benefits of solar energy development extend to development on agricultural land. These benefits may be realized by both land owners, including farmers, and solar developers. Potential benefits to land owners and farmers might include self-generation of electricity and reduced energy bills; an additional stream of income; improved soil health; improved crop yield and crop resistance; and protection of the existing natural habitat. Potential benefits to solar developers might include reduced preparation, installation, operations, and management costs; a decrease in permitting time; increased energy production due to potential cooler air zones under modules; and a reduced need for environmental mitigation investments. Benefits may vary depending on the type of co-located solar and agricultural project.
Recognizing these potential benefits, the practice of agrivoltaics is a growing phenomenon as states continue to adopt incentives and establish new research opportunities to better understand its advantages. For example, the Solar Massachusetts Renewable Target (“SMART”) program allows certain dual-use systems in the state to receive incentive payments on top of existing revenue generated from the sale of electricity. The New Jersey Board of Public Utilities (“NJBPU”) approved an agreement with the Rutgers University Agrivoltaics Program to launch a Dual-Use Solar Energy Pilot Program to demonstrate and study the compatibility of dual-use systems and provide incentives to solar generation facilities located on unpreserved farmland that plan to maintain the site’s active agricultural use. The New York State Energy Research and Development Authority (“NYSERDA”) recently announced the availability of $5 million for projects in the state that co-locate solar siting and agricultural operations. The SMART program website can be found here; NJBPU’s initial press release can be found here; and NYSERDA’s announcement can be found here.
DWGP attorney Keith Gordon will be presenting a “Legal Primer for Landowners Considering Agrivoltaics – Leases with Solar Developers” on July 10, 2024 at the 2024 Solar Farm Summit in Chicago, Illinois. He will be discussing key considerations regarding options and leases with developers, as well as key considerations related to vegetation management agreements involving the practice of agrivoltaics.
For more information regarding agrivoltaics, options and leases with developers, or vegetation management agreements, please contact Keith Gordon or Sylwia Dakowicz.
