American Farmland Trust Releases First Solar Leasing Manual for Montana and Wyoming
“The purpose of this guide is to help agricultural landowners understand the broader context of solar leasing, focusing on issues, risks, and potential benefits before deciding whether to enter into a lease agreement,” said AFT Pacific Northwest Deputy Director Chantel Welch.
As interest and activity in solar development increase nationwide, the American Farmland Trust published the first guide for Montana and Wyoming landowners to help assess solar energy development growth. Studies indicate that solar developers favor rangeland and farmland due to their expansive acreage, level and unwooded landscapes, ease of access, and nearness to existing electrical grid connections.
Low Current Generation Against a Backdrop of Regional Growth
Montana and Wyoming each currently source less than two percent of their electricity from solar. They rank 45th and 47th, respectively, of the 50 United States. Montana has expanded solar since 2017, installing several large utility-scale solar projects. Wyoming was just behind Montana, with its first utility-scale solar development in 2018. Across the region, numerous approved installations are accompanied by additional solar ventures currently awaiting review in both states.
Market Forces Propel Three Distinct Project Categories
Falling prices for solar equipment—which now rivals natural gas, coal, hydro, and wind in affordability—alongside rising power needs and corporate or personal sustainability mandates, are fueling the expansion of these installations.
Both states seek to implement large-scale solar projects, including community, utility-scale, and commercial:
- Community projects, which allow multiple people to benefit from solar energy.
- Utility-scale projects, which generate power for distribution to the grid.
- Commercial projects, which serve a single business client.
Balancing Power Generation with Traditional Ranching and Farming
Landowners in Montana and Wyoming could potentially gain advantages by adopting agrivoltaics, a dual-purpose approach that combines photovoltaic power generation with the cultivation of sellable farm goods. Combining renewable energy generation with agricultural output is a developing method that meets rising power needs while maintaining farming activities. Incorporating solar arrays into farm and ranch activities allows property owners to support eco-friendly agriculture while opening up a new source of income.
“Our goal is to leave landowners better prepared to navigate these conversations, and to highlight opportunities to maintain agricultural production on their lands,” Welch noted.
Local Advocacy Groups Welcome the Manual
Donna Birkholz, Powder River Basin Resource Council Executive Director, shared her organization’s perspective on the new resource.
“We at Powder River Basin Resource Council are pleased to see this detailed, helpful resource for Wyoming’s ranchers and farmers,” Birkholz said. “The fact-based and careful explanations throughout this guide will help those who are considering utility-scale solar projects on their land truly understand the potential impacts and how to navigate the decision-making process with their operation’s future in mind.”
