By SHELLY STRAUTZ-SPRINGBORN Michigan correspondent EAST LANSING, Mich. — Since the beginning of the year, solar companies have been reaching out to Michigan farm owners in hopes of securing land for solar energy projects. According to Michigan State University extension bioenergy educator Charles Gould, this is in response to a recent rate increase by the Michigan Public Service Commission, which now makes such projects profitable for the energy companies. Thus, extension and Michigan Farm Bureau (MFB) have teamed up to offer educational meetings at various locations throughout the state. These are intended to educate farmers about the renewable energy landscape and help them understand the nuances of solar leases, as well as zoning considerations and accompanying tax implications. “The real issues that need to be addressed are local government zoning provisions and the tax implications if a farmer chooses to sign a lease agreement for a solar project,” Gould said. With an average contract length of 25 years, he explained it’s important for farmers to understand the provisions before entering into a solar lease agreement. “In many of the contracts I've seen, it’s not clear whose responsibility it is to remove the solar panels and the lines that go out to the power lines. The other thing that is not necessarily clear is who is liable for the taxes.” He also said farmers who are considering pulling land out of PA 116 need to understand the implications of doing so. “If a farmer takes land out of PA 116, puts solar panels in and then years later wants to put it back into PA 116, they basically have to start over,” he said. “There are some tracts of land that are the perfect place for solar projects, such as lower-quality farmland that returns low crop yields. We really just want to help farmers understand that they need to look at these items in a potential lease agreement,” he added. “If the lease agreement is done right, the farmer stands to gain and the solar company also stands to gain.” Extension staff with lease agreement, tax and zoning expertise will provide the educational content and will be able to answer questions from participants. Topics covered will include the context for solar energy development on Michigan farmland, a community vision for solar energy systems, zoning approaches for solar energy, siting considerations for utility-scale solar, integrating solar with existing ag systems, understanding solar energy lease agreements and taxation guidance including the impact on PA 116. Meetings are scheduled as follows: March 7 in Powers, March 8 in Traverse City, March 13 in Big Rapids, March 14 in Frankenmuth, March 15 in Tecumseh, March 21 in Ionia and March 22 in Three Rivers. All programs are from 10 a.m.-2:30 p.m., except for the meeting in Tecumseh, which begins at 10:30 a.m. Go to https://events.anr.MSU.edu/shine to register for a meeting or for more information. The deadline to register is March 4 at midnight. The cost is only $20 per person, due to financial support provided by MFB. Pre-registration is required, as registration will not be available onsite. For more information about these meetings or information on energy efficiency practices or renewable energy projects, contact Gould at 616-994-4547 or gouldm@msu.edu |
