The APA’s Planning Advisory Service memo outlined several important economic considerations that should be weighed carefully in any decision to approve, modify, or reject a large-scale solar project. The economic factors involved are particularly important since the community itself will be responsible for paying in the end, should the developer fail to meet its promises. Here are a few key excerpts from the memo:

  • This PAS Memo focuses on the land-use impacts of utility-scale solar facilities, but planners should also be aware of economic considerations surrounding these uses for local governments and communities.
  • Financial Incentives.  Federal and state tax incentives benefit the energy industry at the expense of localities. The initial intent of industry-targeted tax credits was to act as an economic catalyst to encourage the development of green energy. An unintended consequence has been to benefit the solar industry by saving it tax costs at the expense of localities, which don’t receive the benefit of the full taxable rate they would normally receive.
  • Employment. Jobs during construction (and decommissioning) can be numerous, but utility-scale solar facilities have minimal operational requirements otherwise. Very large facilities may employ one or two full-time-equivalent employees.  During the construction phase there are typically hundreds of employees who need local housing, food, and entertainment.
  • Fiscal Impact. The positive fiscal impact to landowners who lease or sell property for utility-scale solar facilities is clear. However, the fiscal impact of utility-scale solar facilities to the community as a whole is less clear and, in the case of many localities, may be negligible compared with their overall budget due to tax credits, low long-term job creation, and other factors.

planning for utility-scale solar energy facilities, p 7

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