March 16, 2020
Solar land leasing can be a beneficial, lucrative process for both landowners and solar developers, so it’s no surprise that solar farms are growing in popularity across the country. Of course, the construction of a large-scale solar project depends on a wide variety of factors and the participation of a number of parties. In particular, municipalities play a huge role in the development and success of solar projects—and this is what we want to focus on today. The deployment of solar has the potential to benefit residents, businesses, landowners, and local communities, and municipalities should follow certain best practices to facilitate these benefits. Thankfully, owing to the work of NYSERDA and NYSEIA, New York municipalities have some excellent guidelines for the development of solar projects.
Scale & Pace of Solar Development
As solar only connects to the distribution system as of now, the short-term possibilities of solar in any municipality may be estimated by the details of the distribution system in question. These estimations serve the purpose of identifying potential locations for solar projects, as well as highlighting the fact that most municipalities, generally speaking, are not anywhere close to an overwhelming degree of solar development in the near future. As an overwhelming level of solar development is extremely unlikely, this means that municipalities can continue considerations of solar policy like property tax or zoning & permitting without the need for a break.
Zoning & Permitting
In terms of solar policy, municipalities should consider some of the following best practices:
Not every municipality will have solar specific zoning as yet. If this is the case, ensure that it is possible for a solar project to pass through the site plan reviews/special permit processes currently existing in your municipality.
If you do have solar specific zoning, or plan on adding solar specific zoning in the near future, there are some best practices to follow:
Allow all types of solar—residential, commercial, community, and utility-scale.
Allow solar projects as both primary structures and accessory structures.
Create multiple facility categories (at least 3, ideally) which have different approval requirements and, possibly, are permitted in different zones. For example, smaller roof-mounted solar projects are often allowed in all zones as long as they have a permit, whereas major ground-mounted facilities must meet specific requirements and pass a site plan review before permission is granted in a zone.
All ground-mounted arrays should have setback and maximum height requirements, while a major ground-mounted project should include a number of additional site review criteria relating to vegetation, stormwater impact, building glare, landscape, fencing, signage, decommissioning, and more.
Regardless of whether or not you have solar specific zoning yet, you should act as the lead agency for the SEQR (State Environmental Quality Review) process during permitting.
Property Tax
In terms of property tax, municipalities in New York follow a particular set of guidelines in order to facilitate solar projects:
Currently, NY has a law providing a property tax exemption for the value solar adds to a property. This exemption lasts for 15 years following the completion of the solar facility.
All municipalities, counties and school districts provide the exemption by default.
To opt out, a local law or resolution must be passed.
Of course, opting out generally discourages solar development in the area due to its impact on project economics.
It’s important to note the benefits this exemption can provide—increased employment and business development, as well as the increased tax revenue arising. These benefits can easily outweigh the tax revenue generated by merely opting out of the exemption.
In addition to New York, YSG Solar operates in a number of other states, such as:
New Jersey
Rhode Island
Massachusetts
Connecticut
Minnesota
Illinois
California
Pennsylvania
& more
If you want to learn more about New York municipal solar, contact YSG Solar today. YSG has been working in the renewable energy sector for over a decade, developing solar projects of all shapes and sizes. Send us an email, or call at 212.389.9215 to learn more.
By Shane Croghan
Information courtesy of NYSEIA’s Webinar on Solar Land Leasing and Municipal Best Practices.