Shining Light On Environmental Due Diligence: Key Considerations For Solar Development

Katie L. Morgan, PWS, EP, Director of Natural and Cultural Resources, Partner Engineering & Science, Inc

As the world races towards a more sustainable future, solar energy has emerged as a powerful player in the utilities ecosystem. However, harnessing the sun's energy responsibly requires meticulous planning and adherence to environmental standards. In this article, we will delve into the critical aspects of environmental due diligence for solar development, offering insights and ideas to ensure that solar projects not only generate clean energy but also safeguard our planet.

Site Selection and Development

Choosing the right location for solar farms is of paramount importance in the planning and success of solar energy projects.Rural solar and urban solar installations differ in several key ways because of the distinct characteristics and requirements of their respective environments.Rural solar projects often encompass vast, open expanses of land, enabling the deployment of utility-scale systems geared toward regional or national grid contributions. These installations grapple with extended transmission distances and grid integration complexities, necessitating substantial infrastructure investment. In contrast, urban solar initiatives face space limitations, typically relying on rooftops, parking lots, or smaller land parcels for efficient energy generation. Urban environments demand compliance with stringent zoning regulations and aesthetic considerations, making community engagement and integration into the urban landscape critical. While rural solar may prioritize servicing local communities, urban solar targets meeting immediate urban energy needs, underscoring the diverse challenges and opportunities inherent to each setting. Screening potential sites for key environmental due diligence factors early in the site selection process is crucial for successful solar site selection and development.

Rural solar projects entail a range of environmental considerations that demand careful attention throughout their lifecycle. These initiatives can disrupt natural ecosystems and habitats, impacting biodiversity and soil health during construction. They may necessitate water resources for panel cleaning or cooling systems, posing potential risks to local water sources and aquatic ecosystems. Sustainable land management practices, wildlife-friendly designs, and stormwater management are essential to mitigate these impacts.Strategic placement of access roads and equipment building pads is of utmost importance, as these areas experience the most significant impact during the project's development.To keep the project on track both in terms of timing and budget, it is best to steer clear of wetlands and aquatic ecosystems, as well as suitable habitats for threatened, endangered species. By carefully considering and avoiding sensitive natural and cultural resource areas, you can ensure a smoother project journey.Additionally, rural solar projects should address visual concerns, climate resilience, noise, and light pollution, while planning for responsible decommissioning and site restoration to minimize long-term environmental effects. Collaborative efforts with local stakeholders and environmental agencies are key to balancing renewable energy goals with rural environmental preservation.

Urban solar projects, crucial for sustainable energy in densely populated areas, come with distinct environmental considerations. Maximizing space efficiency by installing solar panels on rooftops can impact building structures, necessitating structural assessments. Additionally, solar panels can contribute to the urban heat island effect by absorbing and retaining heat, affecting local temperatures. Mitigating this requires cool roofing materials and careful engineering. Urban biodiversity is another concern, with solar installations potentially affecting wildlife habitat and movement; bird-safe designs and wildlife-friendly practices can minimize this impact. Alterations in stormwater runoff patterns, aesthetics, electromagnetic fields, noise, and vibration issues, waste management, air quality during production and transportation, and community engagement are all vital aspects that require careful attention in urban solar projects. Balancing renewable energy goals with urban environmental considerations is key to the successful integration of solar energy in cities.

To maintain project timelines and budgets, it is advisable to initiate the NEPA assessment early in the due diligence process

Regulatory Compliance

Navigatingthe federal, state, and local regulatory environment is crucial for the success of solar projects.Federal regulations, such as the Clean Water Act, the Endangered Species Act, NEPA and tax incentives, are critical, as are state-level policies covering permitting and renewable energy standards. Local authorities oversee zoning, permitting, and community engagement. Regulatory compliance ensures legal and financial security, environmental responsibility, community support, and eligibility for incentives.

Effective navigation of regulatory challenges involves early engagement with stakeholders, the utilization of experts and legal counsel, comprehensive environmental assessments, and adaptability to evolving regulations. Case studies highlight how proactive engagement, expertise, environmental impact mitigation, and flexibility have led to compliant and successful solar projects.

Funding Opportunities

The Inflation Reduction Act is a monumental source of funding for clean energy initiatives, representing the most substantial investment in U.S. history. It introduces an array of new tax incentives and boasts substantial grant and loan programs, all designed to spur investments in clean energy technologies. These funding opportunities aim to accelerate the adoption of transformative clean energy solutions, leading to a low-carbon energy system, reduced energy costs, and job creation, with a particular emphasis on underserved, low-income, and pollution-affected communities.

In addressing the climate crisis, the Act sets ambitious targets and allocates substantial resources, including extensions and modifications of the Production Tax Credit (PTC) and Investment Tax Credit (ITC) for renewable energy. It also provides a substantial $27 billion allocation for the Greenhouse Gas Reduction Fund, supporting projects that reduce greenhouse gas emissions and benefit low-income communities. Additionally, the Act makes available $40 billion in loan authority to support innovative clean energy projects, spanning renewable energy systems, carbon capture, nuclear energy, and mineral processing, manufacturing, and recycling.

Accessing the funding opportunities provided by the Inflation Reduction Act is a crucial step for clean energy projects, but it's important to note that utilizing these resources will often trigger the National Environmental Policy Act (NEPA) assessment. NEPA requires a comprehensive evaluation of the environmental impacts of a project, ensuring that any potential adverse effects are identified and addressed. To maintain project timelines and budgets, it is advisable to initiate the NEPA assessment early in the due diligence process. By incorporating this assessment as a vital part of project planning, developers can proactively identify potential environmental concerns, streamline the permitting process, and implement mitigation measures when necessary. This proactive approach helps ensure that the project remains on schedule, adheres to environmental regulations, and secures the necessary approvals for successful implementation, ultimately advancing both clean energy goals and environmental stewardship.