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Examining Economic Benefits of Agricultural Land-Use Transition to Utility-Level Solar Energy Generation

Abstract

Agricultural water supplies are shrinking in California as an effect of a changing climate and groundwater regulations. Farmers have been adapting their practices to cope with this reality over the past many decades, but will need to do more to cut production costs as the price of water rises. One of the cost-saving techniques farmers employ when resources are scarce is to leave a portion of their land idle. Farmers could insulate from climate risk better by using their land for purposes with more predictable profits and less water needs per acre. Solar energy generation is sometimes used by farmers as a profitable alternative to traditional crop cultivation, and would create more consistent returns for the owner. This analysis identifies over 90,000 acres of active agricultural land in the San Joaquin Valley that would benefit from transitioning to solar generation. The lands identified could add 10-12 GW of solar energy generating capacity per year to the San Joaquin Valley’s existing 3GW.

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