Penn state study reveals nuances of solar leases on farmland

By Blake Jackson

Solar developers see farmland as prime real estate for grid-scale projects, offering easy construction and proximity to infrastructure. For farmers, the predictable income from solar leases is tempting, but a recent Penn State study reveals a deeper decision-making process beyond just profit.

Lead author Kaitlyn Spangler, an assistant professor, highlights how farmers carefully consider if solar aligns with their long-term vision and how much land they're willing to commit. Solar leases, unlike development for housing or warehouses, offer the potential to return the land to agriculture later.

Spangler's research, based on interviews with farmers and solar industry professionals, identifies potential areas for improvement in large-scale solar leases. While some leases allow for continued farming under the panels, it's often not guaranteed, hindering "agrisolar" opportunities. Moreover, non-disclosure agreements at the initial stage can limit farmers' ability to assess lease fairness.

Spangler emphasizes key factors for farmers to consider price per acre, inflation adjustment, and right of first refusal for land management under the panels. Seeking legal counsel is also crucial. Transparency throughout the process, she stresses, allows for "exciting new pathways" to a diversified energy grid.

However, solar development on farmland raises concerns beyond individual farmers. Hundreds of such projects in Pennsylvania await approval, sparking worries about visual impact, community character, and property values. Recent rejections in Mount Joy and North Annville Townships exemplify these concerns.

The lack of statewide regulations leaves the onus on municipalities to create ordinances, a step few have taken. While smaller, community-based solar projects are not currently permitted in Pennsylvania, legislative efforts are underway to change that.

Spangler's study underscores the complex considerations involved in farmland-based solar development. Balancing farmers' needs, community concerns, and environmental benefits requires transparent communication, careful planning, and potentially, revised regulations. As Pennsylvania navigates the growing demand for renewable energy, these factors will be crucial in ensuring an equitable and sustainable approach.

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