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3 Reasons Why Solarizing a Brownfield Makes Sense

February 17th, 2023

Brownfields and solar power have become common buzz words within the AEC industry. Are these just the latest trends or can joining brownfields redevelopment to solar power result in meaningfully and lasting change? When we can certainly see momentum for this concept at the federal level. Large-scale initiatives have been launched to couple the redevelopment of underutilized property with the implementation of renewable energy on the same site. On the federal level, the Inflation Reduction Act provides strong tax incentives for brownfield redevelopment and stackable benefits available for renewable energy. In the past, the benefits of development were often outweighed by assuming the cost of remediation and associated liability for impacted sites. Federal, state, and local governments realized that by easing the burden associated with impacted sites and facilitating the successful redevelopment of blighted properties, the return on the investment through social and economic benefits, create a positive feedback loop for shareholders. Economic opportunity is created for investors and developers while contamination is being addressed and underutilized property is developed into productive use. The solarization of brownfields as a vital component of redevelopment just makes sense, with three key reasons in particular pointing to why:

1. Economic Incentives – Tax Credits, Reduced Land Cost, Streamlined Approval

For a project to be successful, it has to make economic sense. There are many economic incentives available for brownfield redevelopment and renewable energy. The Inflation Reduction Act recently expanded existing federal brownfield tax incentives and additional tax credit opportunities for solar development and other renewable energy alternatives such as charging stations. State programs such as grant funding, liability relief, and loan packages are also available. Local governments and municipalities may also incentivize development with additional tax credits, waived permitting fees, and favorable zoning.

In addition to tax incentives, the upfront cost can be reduced by developing on degraded land. Landfills, mines, and other impacted sites are leased or bought at a significantly lower cost than a green space or commercial site. Several states offer reductions in the assessed value of the land and improvements.

In any development project, time is money. Zoning and permitting designations for Brownfields Sites are often compatible with renewable energy facility needs, which reduce the resources needed to approve permits and expedite the project timeline. When special permitting or approval is needed, cities and counties are willing to streamline the process because they realize the benefit for redevelopment. Streamlined permitting and zoning reduce project cycle times. 

2. Leverages existing infrastructure while preserving green space

Brownfields are often located in industrial areas with access to transmission lines, substations, roads, water, rail, and existing buildings. This existing infrastructure can save money on construction costs, while developing it in a green space could cost millions. Even if upgrades are necessary, the existing land easements, water rights, and zoning designations allow more efficient approval and project completement. Rail and port access can facilitate more extensive raw material and waste transport options. Overall, the cost of construction can be reduced and operations optimized. Additionally, solar facilities in industrial areas can more easily connect to the grid and send power to nearby homes and businesses.

Many arguments can be made as to why protecting, preserving, and maintaining access to green spaces is important. Renewable energy demand has grown significantly, and puts pressure on open space due to increased land requirements. According to EPA’s RE-Power America Initiative, there are over 15 million acres of Superfund, brownfields and RCRA sites pre-screened for suitability with renewable energy. Why develop green space areas when we can reintegrate these degraded lands into a productive end use?

3. Benefits the community

Brownfield redevelopment turns blighted properties into economic opportunities and the implementation of solar power on these Sites provides low-cost, clean power to communities. Brownfields are often located in environmental justice communities that have been exposed to harmful industrial operations. Redeveloping brownfield properties addresses the contamination present in the area, removes a negative impact on the community, and eliminates the liability of unsafe conditionals or even criminal activity present on unused land.

Large-scale solar projects create jobs and brownfield redevelopment can increase property values by 5-15% within a mile of the Site. The EPA states that “The economic benefits most commonly touted for renewable energy on contaminated land are cost savings, additional land lease revenue to the town or city site owner, and increased tax payments for the land and/or renewable energy systems to the local municipality and/or state.” Through a variety of methods including favorable leasing options, tax incentives, and power purchase agreements, the arrangement can be facilitated as a win-win for both the site developer and the local municipality.

It is easier for a project to gain community support for the redevelopment of a brownfield and renewable energy is often favorable to the general public. Once a project is able to gain community support through land revitalization efforts, the engagement of the community provides additional support and resources to realize a project’s completion.

Transforming blighted properties into hubs for renewable energy seems to be the way of the future and much more tangible as a fresh influx of grant funding and economic incentives move through the federal and state governments as well as local municipalities and economic development agencies. State agencies are promoting liability relief, loan packages, and grants and local municipalities are eager to facilitate the permitting and zoning necessary to complete these projects. Not only can the development of solar power on brownfield sites be an economically beneficial investment, through utilizing incentives and existing infrastructure but it also has a positive impact on the community and the environment. 

Sources: https://www.epa.gov/re-powering

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Almariet Roberts, Project Consultant at HRP Associates, Inc.