Jim Howie continues a long-standing family tradition by taking his cattle to graze on land near Waxhaw, which his family has farmed since the 1860s. Historically, agriculture was the economic backbone of Waxhaw, with many residents having ties to farming. However, the landscape is shifting rapidly, with Union County witnessing a surge in housing developments and solar energy installations. While Howie supports renewable energy, he questions whether converting productive farmland is the best approach.
North Carolina ranks fifth nationally in solar energy development, yet this growth has sparked considerable debate. Recently, several counties have enacted moratoriums on solar projects. House Bill 729, progressing through the state legislature, seeks to further regulate solar development under the “Farmland Protection Act.” The proposal intends to eliminate property tax abatements for new solar projects, effectively increasing the tax burden for these installations by fivefold. Additionally, the bill mandates the North Carolina Utilities Commission to deny certification for utility-scale solar projects that would occupy agricultural land.
Representative Jimmy Dixon, the bill’s primary sponsor, advocates for the legislation, asserting that solar projects should not consume valuable farmland and should contribute more significantly to rural counties, which are primarily agricultural. Meanwhile, proponents of solar development like Joel Olsen, who leads a solar development firm, argue for a harmonious coexistence between agriculture and solar energy. His Montgomery Sheep Farm integrates 600,000 solar modules with traditional farming, supporting both energy production and agricultural activities.
Olsen’s solar projects contribute significantly to local energy needs, with one facility powering approximately 3,000 homes annually. Additionally, solar installations increase tax revenues, as agricultural land typically benefits from tax exemptions that solar projects do not. However, HB 729 proposes to remove the current 80% tax abatement on solar systems, potentially impacting investments and job creation within the state.
Farmers like Howie view the bill as a means to protect their communities from losing more farmland. Despite supporting property rights, Howie and others are concerned about the long-term implications of farmland reduction. Olsen, while understanding these concerns, believes that innovative integration of farming and solar energy can provide mutual benefits without pitting the two sectors against each other.
As of April 15, 2023, HB 729 has advanced through the House Finance Committee and awaits further discussion in the Agriculture Committee. The outcome of this legislation could significantly impact the balance between renewable energy development and agricultural preservation in North Carolina.
Understanding the Impact
The enactment of House Bill 729 could have extensive implications for both agriculture and renewable energy sectors in North Carolina. Farmers and rural communities could experience protection of agricultural land, preserving traditional farming livelihoods and local food production. This preservation may lead to sustained agricultural income and community stability, but might also limit opportunities for diversified land use that includes renewable energy development.
Conversely, solar energy developers may face increased financial burdens due to heightened tax liabilities, potentially slowing the pace of solar infrastructure growth. This could impact the state’s renewable energy goals and affect job creation within the solar industry. Additionally, homeowners and businesses seeking cleaner energy options might encounter reduced access and higher costs if solar development is constrained. Ultimately, finding a balance between preserving farmland and fostering renewable energy is crucial for sustainable progress in the region.