Economic Benefits
-A Review-

Click here for a copy of the detailed source review

Model: A hypothetical 1,000 acre solar farm generating around 170 MW of power in Reno County Kansas 2024. Embedded energy required to build the farm would be paid back within 2-4 years, and the farm would save over 12 Billion pounds of CO2 emissions compared with natural gas, all in.

Potential gains to the economy

Totals -30 years

Property taxes (over existing) -land +$898,997.40

Property taxes -equipment (20 yrs) +$14,200,000

Pilot payments (10 yrs) +$8,500,000

Landowner payments (30 yrs) +$30,000,000

Construction impact +$10,000,000

Operations/Maintenance (30 yrs) +$10,200,000

Potential farm economy losses* -$5,760,000

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Totals economic impact (30 Years) +$68,038,997.40

Economic impact per year +2,267,966.58

*Background: At any time, a Reno County farmer can stop farming his/her ground for any reason. You can not make someone farm. Latest available figures show Reno County has about 63,000 acres lying fallow in the Federal Conservation Resource Program (CRP) program. Reno County has about 789,525 acres total in farms. A 1,000 acre solar farm would represent .127% of current Reno County farm acreage.

Side benefits that could occur but are NOT counted in this review

Agrivoltaics

• Additional business relationships/expenditures in farming/herding could develop if Agrivoltaics were involved.

• Additional need for seed, fertilizer, water, etc could materialize as well.

Consumer spending

Farmers are also non-farm consumers. Increased farm income will result in increased consumer spending. Perhaps additional travel, an addition to the house, or a new truck?

Educational opportunities

Many solar farm operators engage with local schools and colleges to provide educational programs and tours of their facilities. This hands-on exposure to renewable energy technology can inspire the next generation of engineers, scientists, and environmentally conscious citizens. It also helps foster a sense of pride and environmental stewardship within the community.

Environmental benefits

By reducing the reliance on fossil fuels, solar farms help decrease air pollution and greenhouse gas emissions, which can lead to improved air quality and better overall public health. Fewer emissions mean fewer health problems associated with air pollution, such as asthma and respiratory illnesses.

Farm operation

Farmers are business people. While agricultural acreage from thier operation may be used for solar farms rather than crops, thier overall farm income will increase. This may cause farmers to spend monies they wouldn't have spent on additional/newer equipment or additional supplies for their remaining agricultural acreage.

Higher commodity prices for farmers

While a 1,000 acre solar farm is much too small to affect crop prices, overall additional acreage allotted to solar farms on a regional basis could slightly raise commodity prices and increase farm income.

Potential fuel price reductions

By reducing the reliance on fossil fuels, solar farms can help to keep future fossil fuel prices in check and extend our reserves.

Potential cross pollination with new solar related businesses and new solar research efforts in the County

This could be the biggest effect by far, locally. Seed companies could perfect seed blends for use in Agrivoltaics on the plains. Equipment manufactures could develop better solar trackers or racking systems. Research projects could pay out dividends unknown. The possibilities are endless.

Side benefits pertaining to ground enrolled in CRP also apply to ground in solar farms and include

Roads could see less use (after initial construction)

Erosion could be lessoned (versus traditional tilled fields)

Improved water quality (versus traditional farming -sediment, fertilizer, herbicide)

Resources

🔵 Economic Impact of a Proposed Solar Energy Project in Freeborn County Minnesota

🔵 KLRD -KANSAS WIND ENERGY INCENTIVES overview 2022 (applicable to solar as well)

🔵 A new kind of farm is being built on 1,000 acres in Marshall Township

🔵 Solar Panels Reduce CO2 Emissions More Per Acre

🔵 Solar Energy Property Taxation

🔵 Solar: energy payback and embedded energy?

🔵 Real Property Tax Versus PILOT for Solar

🔵 NY State Solar Payment-In-Lieu-Of-Taxes (PILOT) Guide