New research shows wind and solar farms can bring economic gains to rural communities. Simultaneously, in some Midwestern and Great Plains states, ordinances regulating renewable energy development are on the rise.
Energy generated from renewable sources such as wind and solar has grown as power companies diversify from fossil fuel sources. A new report from the University of Missouri’s Center for Rural Energy Security analyzes the economic impact of renewable energy in rural counties.
Economist Adrienne Ohler, the lead researcher on the study, compared economic factors in counties with renewable power plants and those without from the years 2001 to 2023.
Most of the economic advantage of solar energy development in rural counties came to the utilities, construction and transportation sectors, which each saw 10% to 20% increases in employment and wages. The communities hosting wind energy infrastructure saw an increase in gross domestic product, or GDP, by approximately 7%.
Ohler is from a rural area herself and said she witnessed firsthand how energy development can be controversial. She said concerns about property values and taking farmland out of production can divide neighbors.
“Renewable energy isn't right for every community. There are good reasons to adopt it and good reasons to sort of set up ordinances and permitting that would sort of limit what it would look like in a community,” she said.
There is no “consequence-free” form of energy generation, according to Josh Moenning, director of New Power Nebraska, a renewable energy advocacy organization.
“Those counties who have said yes to the opportunity — or at least allowed the investment to come in by adopting reasonable regulations that permit development — have seen benefits,” Moenning said.
The report states that neither wind nor solar development were associated with declining agricultural GDP, employment or wages. This suggests that renewable energy development does not substantially diminish agricultural economic activity, according to the study.
Nearly 10% of Missouri’s electricity comes from wind and just more than 1% is solar power. There were a number of bills proposed in the Missouri legislature last year to ban or limit renewable energy. Those opposed to renewable energy projects raised concerns about property rights and values and how the infrastructure impacts quality of life in rural areas.
James Owen is the executive director of Renew Missouri, an organization that advocates for solar and wind power. He said although renewable energy projects don’t bring many long-term jobs to rural counties, communities can benefit from increased tax revenue.
“What's going to benefit a school district, fire district, ambulance district? Those are the things that I think rural communities certainly do care about, should care about,” Owen said.
Additionally, Owen said domestic power is more reliable than oil and gas that’s imported.
“Solar and wind do not go through the Strait of Hormuz. It can be produced right here,” Owen said. “So if you want to have reliable electricity that is somewhat cost efficient, you've got to be able to have this, and sometimes that's going to be in your backyard.”
Rising regulations and standards
Large-scale wind and solar power plants are disproportionately sited in rural areas — 70% of large-scale solar and 94% of wind farms are built on cropland. Ohler at the University of Missouri said local leaders should take note of the policies in communities that have had success.
“For a county or a community to have positive effects, they would need to have similar mechanisms in place, similar policies and regulations in place,” she said.
According to an analysis of four states conducted by the Center for Rural Affairs, more local governments are putting regulations regarding wind and solar development on the books.
In the past two years, the number of counties with renewable energy ordinances in Iowa, Minnesota, Nebraska and South Dakota grew by 45%.
The increasing local guidelines often dictate how to manage vegetation around energy infrastructure, what companies must do when the power plant closes and how far solar panels or wind turbines need to be away from neighboring properties or roads, known as “setbacks.”
“The relationship between counties and developers is maybe maturing a little bit,” said Heather Sparks, policy associate at the Center for Rural Affairs. “It's a little less fluid than it was before, and now there are just some more guidelines in place.”
Iowa was an early adopter of renewable energy. Wind power now accounts for more than 50% of the state’s electricity generation.
Jordan Oster is the Energy Program Director at the Iowa Environmental Council. The organization encourages local lawmakers to enact reasonable planning and zoning guidelines for energy infrastructure, due to increasing development demand for energy, housing, manufacturing and data centers.
“Part of what we're seeing in Iowa really is just a lot of pressure on landowners and local communities for infrastructure,” Oster said. “It's almost like an infrastructure collision course.”
In some rare cases, local governments enact extremely strict renewable energy ordinances in an effort to discourage development.
“Increasing a setback a quarter mile or a half mile can really just change the economics of a project and really make it infeasible or not a viable location for a developer to build,” Oster said.
Oster said local ordinances are key to balancing property rights with the broader community’s values, while ensuring opportunities remain for economic growth through renewable energy development.
Jana Rose Schleis first reported this story for KBIA.
This version was produced in partnership with Harvest Public Media, a collaboration of public media newsrooms in the Midwest and Great Plains. It reports on food systems, agriculture and rural issues.