星期五, 7月 30, 2021
Home PV News North America Farmers opting for solar leases over carbon sequestration contracts

Farmers opting for solar leases over carbon sequestration contracts

In a recent Purdue University survey, farmers reported adopting solar leases at more than double the rate of carbon sequestration plans as a much higher price-per-acre was offered.

Source:pv magazine

Purdue University released the results of its Ag Barometer, a monthly survey of farmers in the U.S., and found that farmers are adopting solar leases at double the rate of carbon sequestration contracts.

Farmers are continuing to turn to solar as a source of income, with financial fears brewing in the agricultural sector, said Purdue. The Farm Financial Performance Index has fallen 24% in just one month, as farmers are expecting their input costs to rise much more rapidly in the year ahead than they have over the last decade.

Increasingly, solar is being considered and adopted by farmers to balance the books. Of the 400 surveyed farmers, who run operations larger than $500,000 in annual revenue, nearly one-third are aware of solar leasing opportunities for their farmland, and 29% have engaged in discussions with solar companies about leasing their land.

One in ten of those farmers who engaged in talks moved forward with solar, with 2.9% of total respondents saying they currently have solar lease contracts. This compares to only about one percent of farmers engaged in carbon sequestration plans.

Solar leases currently are offering some financial relief, but the surveyed farmers have witnessed a wide range of per-acre pricing for their contracts. A third of the projects offered less than $500 per acre annually, and about 27% percent said their solar contract offering ran at $1000 per acre or more, with the rest falling in between.

These prices dwarf the $20 per acre value of carbon sequestration plans. Though in carbon sequestration plans, the farmer will still have utility of the cropland and the value therein, they may have to change their practices to achieve the contract’s sequestration goals. Most solar fields do not support farming in the same space, but a rising trend of agrivoltaics may change that.

Carbon sequestration plans will need to make a stronger business case to farmers already feeling pain if wider adoption is to be seen. Such carbon plans are not necessarily in a zero-sum game with solar projects, so creative ideas on this front could generate new value chains.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Punjab Commission Allows Deviations in Competitive Bidding Process for Solar Projects

The Punjab State Electricity Regulatory Commission (PSERC) has allowed deviations in the guidelines for tariff-based competitive bidding process for grid-connected solar photovoltaic (PV) projects...

Solar Module Manufacturers in Asia Account of 92% of the Global Production: Report

In its latest report, Fraunhofer Institute for Solar Energy Systems (ISE) has stated that manufacturers in Asia accounted for 92% (over 130 GW) of...

First Solar to Set Up a 3.3 GW Thin Film Solar Module Manufacturing Facility in India

First Solar, a U.S.-based manufacturer of solar modules, announced that it would invest $684 million to set up a new, vertically integrated photovoltaic (PV)...

ACME Solar Raises $334 Million in Offshore Green Bonds for 12 Solar Projects

Independent power producer ACME Solar (ACME) has raised around $334 million for 12 of its solar projects through the issuance of offshore green bonds....