Economics

Economic impacts on landowners from solar developments depend on whether their land is included in the solar project or adjacent to it, and whether the land is residential or agricultural. 

In Wisconsin, solar lease payments reportedly range from about $500 to over $1,500 per acre annually, compared to average farmland rents of $158 per acre in 2024 and $183 in 2025. Adjacent non-participating landowners may negotiate Good Neighbor Agreements to address screening, noise, or compensation. Learn about Solar Land Leasing Contracts, UW-Madison Extension, offers a guide for landowners considering leasing their land, and a companion worksheet to help document important information when meeting with developers

Farmers may experience both financial benefits and costs when farmland is developed for solar energy.

Rent from solar developers typically far exceeds income from farming and provides stable, predictable payments year after year. However, those renting land to grow crops or spread manure may lose access and face higher rental or purchase costs for nearby farmland.Dual-use opportunities include grazing sheep or pursuing other agricultural activities within solar projects, offering affordable land access. More information about  agrivoltaics can be found here.

The main concern that arises is the potential impact of solar development on the tourism economy.  There are possible indirect benefits, such as local spending by solar construction crews and the economic boost from farms thriving through solar lease income. Because economic conditions vary by region, there is not enough information on whether solar development ultimately helps or harms the broader business community.

In Wisconsin, large-scale renewable energy projects do not pay traditional property taxes but instead provide annual utility aid payments of $5,000 per megawatt, distributed to local governments where projects are located. Since one megawatt of solar takes up approximately seven acres of land, and many projects are 100 MW or larger, one project could be hundreds of acres and span multiple jurisdictions.

These payments begin once the facility becomes operational and may be used for roads, emergency services, or other local priorities. However, communities may experience costs related to staff time, road repairs, legal services, and specialized consultants during project review and construction.