Problems with Solar Energy: Considerations for Landowners

If you’re a landowner interested in hosting a renewable energy project, it’s important to understand the problems with solar energy. By gaining a complete understanding of the potential issues, you can make a more informed decision about leasing your land.

I recognise that getting a new solar project on your land can feel overwhelming. In those early stages, you may be weighing up whether the potential passive income outweighs the challenges solar energy may present.

My approach is always balanced, so I’ve compiled a list of common issues with solar energy. I’ll cover these issues in detail and offer insights on how landowners can navigate them, ensuring their projects run smoothly.

Let’s dive in.

What Are the Problems with Solar Energy?

Panels take up a lot of space

If you plan to build a solar project on your land, you’ll need a lot of acreage.

A solar farm generally requires about 25 acres of land for every five megawatts of installation capacity. And as not all of this land can be used for a project, most developers will request up to 200 acres of land for a large-scale project.

If you’re looking to host a smaller project, you might get away with having 10 acres or so to spare. However, as these projects typically aren’t as profitable as larger ones, developers rarely want to invest in smaller plots of land.

For landowners, the issue of space can be one of the major concerns when planning a solar energy project, especially regarding the potential impact on day-to-day operations.

However, it’s important to note that solar farms typically don’t significantly impact farmland.

For one thing, a reputable developer will usually return your land to its original state upon decommissioning. Additionally, the land required for a solar farm is carefully mapped out in advance. So, there should be very few surprises for landowners.

Panels are considered to be unattractive by some

Opinions on solar energy across the UK are variable, but the good news is that most people actually support large-scale solar projects. In fact, at least eight in ten people are in support of solar power (which is an excellent step towards the attitude we need to reach net-zero limits by 2050).

However, some people still think rows and columns of solar panels in the countryside are unattractive. Some communities even go as far as to say these panels devalue the area around their homes.

While this claim is largely unproven and not supported by local housing prices, it’s clear that not everyone is 100 per cent supportive of solar.

This opposition primarily comes from the ‘Not In My Backyard’ (NIMBY) contingent of the UK (that generally opposes new developments). While developers should consider their views, it’s important to note that this is a subjective issue.

While some of the population will always oppose renewable energy projects, a large proportion of the country appreciates and values them. Therefore, the perceived unattractiveness of solar panels is one of the challenges with solar energy that isn’t as straightforward as it may first appear.

There’s “solar trash” to consider

It might not be one of the problems with solar power that you’ve thought much about, but decommissioning a solar project involves a lot of waste. This is mainly because there is little incentive to recycle solar waste, as recycling is far more expensive than sending the waste to landfill.

Now, I’ll lift your spirits a bit by saying that this is more of a problem in the US than in the UK.

n the US, it costs between $20 and $30 to recycle a single panel. When you compare this to the $1 to $2 cost of sending a panel to landfill, it’s easy to see why developers opt for the less environmentally friendly option.

Although the situation is slightly better in the UK, decommissioning is still an expensive process (especially for large projects).

As of August 2023, there was only one specialist recycling centre for solar panels in the UK – Recycle Solar, which is a small operation tucked away in Scunthorpe.

Plus, it’s important to recognise that this recycling centre doesn’t have the manpower to deal with thousands of panels from solar farms across the UK.

You also need specialised labour to deconstruct a solar farm. This is because panels often shatter if you remove them.

So, one of the problems with solar energy is that the panels can be hazardous to remove and recycle.

What about the flip side?

Well, some companies commit to reusing or recycling their panels. For example, the energy developer Ørsted recycles ALL solar panels from its global portfolio. Equally, First Solar is a world leader in recycling and offers recycling facilities in Ohio, Malaysia, Vietnam and Germany. This has boosted their recycling capacity (which should encourage other developers to do the same).

Solar Power World says companies like Working For The Son Solar (WFTSS) in California are also repurposing old panels.

The source states that:

Since its start, WFTSS has kept more than 100 tons of solar materials from landfills. Its repurposed panels have been sold to buyers like solar DIYers and companies seeking replacement parts for existing arrays. By selling repurposed panels and decommissioning large-scale arrays, WFTSS can fund its main mission of bringing pro bono solar projects to indigenous people of Mexico.

So, decommissioning doesn’t always mean the end of a solar panel’s life.

It’s intermittent

While solar power is a clean and attractive energy source, it’s not always the most reliable in the UK. With an average of 4.3 daily sunlight hours, the UK isn’t the most ideal solar panel location compared to sunnier regions.

While it’s still a viable option, it receives less irradiation than places like Dubai, which boasts around 8 to 10 hours of sunlight daily.

South-facing spaces are far more reliable than north-facing spaces when it comes to capturing sunlight. And, of course, the UK will naturally receive far less light during winter (when projects are quite inefficient).

However, intermittency is not all doom and gloom. You can balance energy throughout the year if you use high-capacity battery systems. Commercial battery systems can offer backup power and capture excess solar energy during high-yield periods, offering an uninterrupted power supply throughout the year.

This should offer landowners and developers a long-term, stable income – and what could be better than that?

There’s sometimes an issue with the scarcity of materials

Certain solar panels require expensive and relatively rare materials to produce. So, it’s tricky to say how sustainable solar farm projects will be over time as these materials start dwindling.

There are several materials that manufacturers use to make solar panels, but the rarest are:

• Neodymium
• Dysprosium
• Indium
• Gallium
• Cadmium
• Tellurium

Solar panel manufacturers use Tellurium in thinner solar panels, and this material makes up just 0.0000001 per cent of the Earth’s crust. In short, it’s hard to find and is an eye-watering three times rarer than gold.

As the UK powers towards net-zero limits and a target of 85 GW of solar by 2050, mining for these rare materials will only ramp up. For that reason, we must do this sustainably.

There could be an opportunity cost for using the land for panels

If you’re a landowner, it’s doubtful that you use your land exclusively to host a renewable energy project. And if you’re using it for agriculture, there’s every chance you’ll need to sacrifice viable farmland for rows of solar panels.

This isn’t necessarily an issue if no one is using the land. But you might be surprised at how much space access roads and mounting poles take up.

Under an option agreement, a developer will completely reserve a large section of your land. You still technically own it, but you won’t be able to build on it, work on it or make any changes during the lease period.

You can still farm with solar panels on your land (depending on the location). However, it’s crucial to carefully consider the potential impact that signing away parts of your land might have on your usual profits.

On the other hand, there are cases where you wouldn’t even need to touch agricultural land. For example, Veolia has increased its solar power capacity by 59 MW on an old landfill gas site. This restored landfill site would be left completely unused otherwise. So, this is a great great way to repurpose large plots.

They’re expensive to set up

It’s no secret that solar panels are expensive. The initial cost of setting them up running into the hundreds of thousands for large projects.

Some small community farms can cap out at around £500,000. But the cost of the modules alone can run up to £200,000 per megawatt of power produced for larger projects. As a result, securing financing for solar panels can be a tricky business for developers.

However, it’s worth noting that landowners won’t be responsible for the startup costs of any solar project – unless they’re self-developing and self-financing. The brunt of the financial cost is the developer’s responsibility. They’ll either fund the project with their own capital or source external investment.

All landowners will need to worry about is choosing the right payment arrangement for their needs. Whether that’s a fixed income, a hybrid arrangement or a turnover-based approach.

 If you are a self-developing landowner, it’s important to note that you will eventually make back your initial investment. As I mentioned earlier, the average ROI for a solar farm is around 10 to 20 per cent. Most projects start turning a profit within 10 or 15 years. This gives you upwards of 20 years to reap the rewards in full.

Final Thoughts

As you can see, there are a few problems with solar energy that just come with the territory. Along with using relatively rare materials, building solar panels also requires space and a significant financial investment.

However, the problems with solar energy certainly don’t outweigh the benefits. A standard PV system in the UK saves 0.9 tonnes of CO2 annually. When you think of how many panels make up a typical solar farm, the reduction in pollution gets even more impressive.

Additionally, most problems with solar energy relate to cost, appearance or the amount of space it takes up. However, as 88 per cent of the UK supports solar energy development around the country, these fears aren’t exactly widespread.

If you want to make extra income by leasing your land for solar, get in touch. Lumify Energy will happily guide you through the process. Whether you want to ensure you’re maximising rent or don’t know how to kickstart your renewable energy journey, we’re here to help.

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