States Can Lower Electricity Prices by Letting Solar Build

February 13, 2026

Electricity demand is rising at a historic rate, and so are utility bills. The solution? Build more solar and storage — the cheapest and fastest ways to supply booming demand.

Farmers and landowners are helping meet this challenge by partnering with solar and storage developers to deliver reliable, cost-effective energy. For many, leasing land for energy projects is a practical, market-based decision that provides stable supplemental income and keeps land in productive use.

Yet too often, arbitrary and inconsistent local restrictions prevent landowners from exercising that choice. When permitting processes become unpredictable and fragmented, projects stall, new supply gets delayed, and consumers ultimately pay more.

States and localities can protect private property rights and lower costs by establishing clear, consistent standards for solar siting that ensure transparency, meaningful community engagement, and predictable timelines. Modernized siting policies are essential to meeting growing energy demand, preserving working lands, and strengthening rural economies.

Solar is the Fastest and Most Affordable Energy to Build 

Solar and storage reduce strain on the grid and push down wholesale electricity prices, delivering savings when customers need relief most. Unlike other energy sources, solar has no fuel costs, which protects families and businesses from volatile global energy markets.

Preserve Farmland and Support Rural Communities

Landowners want and deserve the freedom to make decisions about how to use their land, including whether to lease a portion of it for solar development. Private property rights are a core American value and the foundation of a strong rural economy.

Solar development helps keep farms financially viable and land in agricultural use. Approximately 85% of solar project land either remains in agriculture during operations or returns to agricultural use after a project’s lifecycle, often in improved condition. Unlike permanent residential or commercial development, solar projects are temporary and reversible. And solar uses the land efficiently. Researchers found that solar could match the energy generated by corn-ethanol in just 3.2% of the land used.

Many projects integrate grazing, pollinator habitats, or crop production alongside solar arrays to maximize land productivity and diversify farm revenue. In states like Virginia, where farmers face rising costs and unpredictable markets, solar provides stable, long-term income that helps keep farms in families.

Solar projects also generate significant local tax revenue, create jobs, and drive investment in rural communities. A 2025 study found that current and expected renewable and energy storage projects in Texas are expected to pay nearly $50 billion in lifetime landowner lease payments and local taxes.

Dr. Michael Davis, former Superintendent for Cushing Independent School District in Nacogdoches County and now a school finance specialist with the Region 7 Education Service Center, applauded the growth of renewables in East Texas. “It’s great to see these types of projects coming to our region,” he said. “For smaller, rural schools, the added revenue can make a significant difference – especially for funding enrichment and construction projects that might otherwise be out of reach.”

States Must Lead to Let Solar Build

State leaders around the country have introduced legislation with bipartisan support that will advance energy affordability and security for all, including bills to invest in more energy storage and streamline residential solar permitting. This legislation is important, but project siting remains the key bottleneck for America’s energy economy.

Unpredictable permitting processes, layered on a patchwork of various local restrictions, infringe on private property rights and make it harder to bring new energy supply online. Siting reform is critical for states to build the energy they need to continue economic growth, rein in costs, protect farmland, and support landowners.

Learn more about the solar and storage industry’s land use efforts.