As the demand for renewable energy continues to grow, understanding the various options for solar energy generation becomes increasingly crucial. There are two main types of solar farms - commercial solar farms and community solar farms. This resource explores fundamental differences between commercial and community solar farms, exploring how each model operates and the benefits they offer. Learn how to assess which option best suits your land, considering factors like land size, location, and community needs.
Key Takeaways:
Community Solar Farms:
Owned by local individuals or organizations.
Provide solar access without personal installations.
Smaller scale, typically 10-30 acres, serving local needs.
Commercial Solar Farms:
Owned by private companies for large-scale generation.
Sell electricity to utilities or corporations.
Larger scale, requiring 40+ acres, often in remote areas.
Key Differences:
Community farms are localized; commercial farms serve broader markets.
Community farms are near consumers; commercial farms can be remote.
Land Suitability:
Consider acreage, infrastructure proximity, and sunlight.
Tools like LandGate help assess land for solar use.
Community Solar Farms Defined
A community solar farm is a solar power installation that is owned and operated by multiple individuals, businesses, or organizations in a specific geographical area. Participants in a community solar farm typically purchase or lease a share of the solar panels. The power that the solar panels produce allows them to receive a credit on their electricity bills. Community solar farms generally offer lower prices for electricity than the local utility company. The primary goal of community solar farms is to provide access to solar power for people who may not be able to install their own solar panels. Whether it is due to factors such as cost, lack of suitable roof space, or being unable to own their own property. According to the Office of Energy Efficiency & Renewable Energy, community solar programs differ depending on the regulations and laws of the state. In states with permits, subscribers will have two bills; one from the solar program from the community solar farm, and the other from the utility for the traditionally-generated power. Many states are aiming to make the process simpler by combining the two bills.
Currently, community solar projects are active in 43 states and the District of Columbia (DC). Among these, 22 states and DC have enacted "enabling legislation," which promotes or requires community solar initiatives. States with such legislation often see more projects developed and greater subscription availability. Furthermore, 19 states, along with DC, have specific legislation to support low-income community solar projects.
Commercial Solar Farms Defined
A commercial solar farm is typically owned and operated by a private company or organization. They are designed to generate electricity on a large scale for commercial or industrial use. These solar farms are usually located in areas with abundant sunshine and plenty of open land, such as deserts or farmland.
Renewable energy developers seek out large expanses of land for commercial solar projects. The electricity generated by commercial solar farms is typically sold to the local utility or large corporations, rather than directly to consumers.
The amount of acreage needed for a solar project to be considered a commercial solar farm can vary. This depends on several factors, such as the capacity of the solar farm and the location of the site. In general, commercial solar farms are designed to generate a significant amount of electricity and typically require a larger land area compared to residential or community solar installations.
A typical commercial solar farm may require anywhere from 30 to hundreds of acres of land, depending on the size of the installation and the energy demands the solar farm is meant to serve. For example, a 1 MW solar farm (capable of producing 1 megawatt of power) may require approximately 5 to 10 acres of land, while a larger 100 MW solar farm could require up to 500 to 1,000 acres of land.
It's important to note that the size of a commercial solar farm can vary depending on the efficiency of the solar panels used, the amount of sunlight the site receives, and other factors such as shading and topography. Therefore, the acreage required for a commercial solar farm can vary widely based on the specific project details.
The Difference Between Community and Commercial Solar Farms
So, what is the difference between community and commercial solar farms? The scale and purpose are the biggest differences, alongside other factors like location and energy distribution. Community solar farms are designed to be smaller installations that support local energy needs, often providing renewable energy to nearby homes and businesses. They operate on a more localized level, involving community members who may invest in or benefit directly from the energy produced. This model encourages local engagement and offers a more personalized approach to renewable energy.
On the other hand, commercial solar farms are much larger and aim to produce significant amounts of electricity for larger markets. They are often operated by utility companies or large corporations and contribute electricity to the grid on a larger scale, potentially serving multiple regions or states. This larger scale of operation allows them to take advantage of economies of scale, making the energy production process more cost-effective.
In terms of acreage, community solar farms are generally located on smaller properties, ranging from 10 to 30 acres of land or more. These sites are often chosen for their proximity to the community they serve, making it easier to distribute the energy efficiently. Meanwhile, commercial solar farms typically require a minimum of at least 40 acres of buildable land or more, reflecting their larger scale. The expansive space allows for more solar panels and infrastructure necessary to meet their high energy output goals.
Location is another important consideration. Community solar projects must be situated near energy consumers, such as residential areas and small businesses, to ensure efficient energy distribution and minimize loss during transmission. This proximity promotes community involvement and can even increase property values. In contrast, commercial solar projects can be located in more remote locations, far from immediate consumers, as their energy is fed into the broader electrical grid, reaching a wide audience. These remote sites are often chosen for their optimal sun exposure and reduced land costs, maximizing the efficiency and profitability of the solar farm.
How to Determine if Your Land is Right for Community or Commercial Solar Development
Landowners can benefit from leasing land for solar farms. It is a great source of passive income throughout the lifetime of a solar lease and allows you to contribute to clean energy production. But how can you tell if your land is best for a commercial or a community solar farm? A multitude of factors affect whether or not land qualifies for a solar lease, including amount of buildable acreage available, local renewable energy development incentives, and your property's proximity to electrical infrastructure. With the use of LandGate’s free land report, you can assess your property's suitability for a solar farm using various data points specific to your property, including:
Exclusion zones
Buildable acreage
Proximity to transmission lines
Proximity to distribution lines
Proximity to substations
Amount of sunlight
Proximity to other solar farms in your area
