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Energy Siting Policies: Protecting Property Rights and Accelerating Economic Development

Solutions to advance energy independence, landowner freedom, and fairness in rural areas

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Thursday, September 25, 2025

In a new report, Protecting Property Rights, Powering Rural Economies (PDF), Evergreen Action and the Private Property Rights Institute (PPRI) partnered to interview rural stakeholders in Michigan and Pennsylvania to understand their experiences with energy siting. This piece focuses specifically on the policy findings and recommendations from that report. Read more about this project or listen to interviews with local farmers and decision-makers.

Across the country, farmers are navigating shifting economic pressures—from declining crop commodity prices and rising operating costs to labor shortages and increasingly unpredictable weather conditions that are making growing more challenging. In response, many are exploring new, voluntary revenue streams that help keep land in the family and operations profitable.

Leasing land for wind, solar, battery storage, and other energy projects has become a reliable, drought-proof source of income for rural landowners—helping sustain farms, boost local economies, and support long-term community investment.

According to the January 2025 Purdue Ag Economy Barometer survey, 11 percent of 400 farmers interviewed said they had discussed solar leases for their land within the previous six months, trending higher over past surveys. Lease rates offered by solar energy companies in 2024 and 2025 were notably higher than in past years, with 40 percent of respondents reporting offers of $1,250 per acre or more, and 26 percent receiving offers above $1,500 per acre. For many landowners, this income can rival or even exceed earnings from traditional crops, providing financial stability amid rising costs and unpredictable yields.

In many cases, landowners lease underperforming or low-productivity acreage (i.e., land that may not or no longer be well-suited for crop production), ensuring that energy generation complements rather than competes with farming. These leases offer stable, long-term income and create new local tax revenues, benefiting both families and communities. In total, landowners across the U.S. now receive around $2 billion annually in drought-proof lease payments, helping them reinvest in their farms and workforce, pay down debt, and keep land in the family for future generations.

Landowners Face Challenges With Local Restrictions and Property Rights

But despite these clear advantages, energy projects in rural areas are increasingly being met with resistance. Local bans, restrictive zoning ordinances, and permitting delays have prevented many projects from moving forward—taking revenue out of the pockets of landowners and communities. According to reporting by Heatmap News, the number of counties restricting renewable development has nearly doubled since just 2022. As of August 2025, Heatmap tracked 857 renewable energy projects across all 50 states that have faced significant local opposition.

This growing resistance not only threatens the economic potential these projects bring to rural America, but also poses a direct challenge to private property rights. Landowners who wish to lease their land for solar, wind, or battery storage in particular increasingly find themselves blocked by decisions made at the township or county level. In many cases, farmers and rural landowners are being told what they cannot do with their own land, even when proposed projects meet all environmental and safety standards. This undermines a fundamental American principle that individuals should have the freedom to make economic decisions about their property within legal limits.

Column chart: the number of counties where renewables are restricted steadily increased from ~200 to a ~400 from January 2022 to July 2025 — According to Heatmap Pro, the numbers only account for ordinances that can be time-pegged, because we can't always say for certain when a restrictive law was passed, and are lower than the total number of counties with restrictive ordinances. Graphic: Heatmap Pro

Siting Reform Is Essential for Rural Communities

Siting and permitting challenges remain the leading barrier to project setbacks and cancellations. A 2023 survey (graph below) of utility-scale wind and solar developers revealed that the top causes of cancellations over the past five years were unduly restrictive local ordinances, grid interconnection delays, and community opposition.

A 2024 Lawrence Berkeley National Lab survey found that nearly one-third of utility-scale wind and solar projects were canceled and about half faced delays of six months or more. These challenges can cost up to $200,000 per megawatt, millions in sunk costs, and hundreds of local jobs.

This underscores the need for clear, consistent siting frameworks that protect landowner rights and ensure strong community benefits.

According to Nilson, Hoen, and Rand, the sample consists of responses from 123 industry professionals from 62 companies, together responsible for about half of wind and solar capacity from 2016 to 2023. There are 88 solar projects and 44 wind projects. Respondents reported the top three reasons that a project was cancelled. Graphic: The Hamilton Project/Brookings

How are Michigan and Pennsylvania Handling Rural Energy Siting?

As renewable energy development accelerates, rural communities find themselves at the center of a growing policy debate. Without clear, consistent, and legally sound siting frameworks, these communities risk missing out on valuable revenue, while landowners face new barriers to using their land—even when projects meet all established standards.

When it comes to governance, states across the country are taking sharply different approaches to siting policy. Some are advancing reforms to streamline project approvals and encourage development, while others are proposing new restrictions that slow or prevent projects from moving forward. Lawmakers are increasingly grappling with how to balance the need for new energy generation with protections for local control and landowner rights. The result is a patchwork of policies that reflect just how politically charged and consequential energy siting has become.

Evergreen and PPRI focused on first-hand perspectives from two pivotal states—Michigan and Pennsylvania—where active debates over energy siting reflect broader national tensions between economic opportunity, local control, and property rights. Both states are seeing significant wind, solar, and battery investment and serve as key test cases for how rural communities navigate growing demand for new energy sources.

What Local Policies Look Like in Michigan

In Michigan, Public Act 233 (2023) established a new siting pathway for large wind, solar, and battery projects. Local governments can retain decision-making authority by adopting a Compatible Renewable Energy Ordinance (CREO) that aligns with state-defined and research-backed criteria for siting considerations such as setbacks and noise. The CREO requirements were created in consultation with a diverse set of stakeholders, including local governments.

This process is designed to ensure local input while reducing unnecessary procedural delays that have historically slowed energy development at the expense of individual landowners seeking to lease their land for revenue. If a local government fails to adopt a CREO or act on a project application within 120 days, developers may apply directly to the Michigan Public Service Commission (MPSC). Local governments receive technical assistance and funding to develop CREOs, and they are compensated when a developer appeals a siting approval to the state level, so they can reasonably represent themselves before the project developer.

In effect, the state has given local governments a strong opportunity to maintain control, provided they adopt a CREO and respond within the required timeframe. While the MPSC pathway offers an important fallback to avoid indefinite delays, the local process is still likely to be faster when those conditions are met. The result is a more predictable and balanced framework—one that respects landowner rights and keeps communities involved without letting permitting get bogged down in red tape.

What Local Policies Look Like in Pennsylvania

In Pennsylvania, HB 502 would create a Reliable Energy Siting and Electric Transmission (RESET) Board to help advance and streamline critical energy projects through a statewide siting authority. This would include requirements for environmental and safety standards, as well as input from local authorities. Like in Michigan, it is worth noting that RESET would be voluntary in Pennsylvania, meaning project developers could still pursue the local route if they choose.

At the same time, the commonwealth has issued voluntary solar siting guidelines to encourage collaboration between developers and municipalities and has launched an effort from its State Energy Office to help educate local authorities on the benefits of renewable siting and address common questions and concerns. These efforts reflect Pennsylvania’s recognition that clear and consistent permitting pathways, combined with local engagement, are essential to expanding energy infrastructure while respecting community values. Just as importantly, they help protect private property rights by ensuring that landowners can move forward with energy projects in a timely and reasonable way.

Policy Recommendations Based on Conversations With Local Stakeholders

Interviews conducted by PPRI revealed a consistent set of themes across geographies and roles. Whether from Michigan or Pennsylvania, or whether speaking as landowners, township supervisors, or county commissioners, local stakeholders voiced similar frustrations and priorities when it comes to energy siting.

Interviewees who identified as Republicans or political conservatives underscored that support for property rights and streamlined permitting is not a partisan issue but a matter of principle and practicality. To support responsible energy siting in rural communities while respecting local values, landowner rights, and economic opportunity, we recommend the following actions by state leaders, local governments, and developers:

For State Governments

1. Protect Landowner Rights

Pass legislation affirming rural landowners’ right to lease their land for energy development—treating it as a permitted land use—so long as projects meet clear health and safety standards.
Avoid one-size-fits-all bans or mandates on new energy infrastructure that limit landowner opportunity and erode private property rights.
Where local siting and permitting processes become unfairly restrictive or overly burdensome, the state should provide a backstop to ensure that individual property owners are not blocked from responsibly developing their land.

2. Provide Technical Assistance and Sample Ordinances

Develop sample siting ordinances and zoning guidance to help local governments adopt clear, legal, and defensible permitting standards.
Offer dedicated support, when feasible, to communities with high development potential through technical assistance from trusted experts.

3. Facilitate Local Learning and Cross-County Collaboration

To foster trust and informed decision-making, Evergreen recommends collaborating with farmer-led networks, such as the Renewable Energy Farmers of America (REFA). Encourage opportunities for landowners to hear directly from peers who have hosted energy projects on their farms.
Whenever feasible, support informal gatherings or developer‑facilitated meetings that bring together current project hosts, local officials, and landowners—creating a space for questions, shared experiences, and openly shared lessons.

4. Support Local Revenue Through PILTs and Benefit Sharing

Evergreen recommends that state governments ensure that energy projects contribute to host communities by encouraging or requiring Payments in Lieu of Taxes (PILTs) in Community Benefit Agreements from developers, or other revenue-sharing mechanisms. These payments can help offset any local concerns about tax impacts and provide consistent funding for schools, emergency services, and infrastructure.

State guidance can help standardize PILT expectations across jurisdictions to reduce negotiation conflicts and ensure rural communities receive a fair share of project benefits.

For Local Governments

1. Respect Landowner Choice

Ensure local permitting processes do not unnecessarily block residents from hosting energy projects that meet established safety requirements.
Avoid zoning rules that functionally ban development or deny reasonable economic use of private land.
Local governments should not target specific industries for exclusion—an approach that has disproportionately impacted renewable energy projects. Private property rights must be applied consistently across all lawful land uses, so long as projects meet established safety and zoning standards.

2. Update and Standardize Local Ordinances

Proactively review and revise outdated zoning codes to allow for solar, wind, and battery storage in appropriate zones with clear conditions that make navigation for host landowners and developers straightforward.
Use available sample ordinances to ensure local rules are consistent, enforceable, and grounded in protecting property rights and facilitating economic development.

For Energy Developers

1. Prioritize Transparency and Local Engagement to Combat Misinformation

Provide clear, accurate information about the actual size and footprint of proposed developments early in the process. Avoid showing overly broad land parcels that can cause unnecessary alarm within rural communities.
Work with local officials and community organizations to emphasize which lands will be used—focusing on low-impact areas like low-yielding agricultural land or previously disturbed sites rather than sensitive areas.
Highlight the voluntary nature of landowner participation and the financial benefits per acre, making clear that leasing is a choice that supports farm viability and local economies.
Explain the temporary nature of leases and the ability to revert land to previous uses after project completion, helping communities understand projects won’t permanently remove land from productive use.
If you have a project already built in an adjacent community, utilize local stakeholders and landowners from that project to speak to the benefits and process in new localities on your behalf.

2. Promote Community Investment and Local Economic Benefits

Evergreen recommends developers, where feasible, reinvest in host communities through Community Benefit Agreements (CBAs), such as:

Payments in lieu of taxes (PILTs)
Emergency services support
Broadband upgrades
Local infrastructure investments, like road re-pavements
Farmland Preservation Funds

Emphasize that the priority is respecting private property rights and ensuring fair compensation for landowners.
Where possible, prioritize hiring of local contractors and tradespeople with competitive wages.
Where possible, invest in training programs that prepare rural workers for energy jobs to build local capacity and strengthen rural economies.

Freedom to Lease: A Property Rights and Energy Permitting Issue

Rural landowners want the same things as most Americans: the freedom to make decisions about their own property, the ability to support their families, and the opportunity to pass on their way of life to future generations. For many, leasing land for energy infrastructure helps make that possible—offering reliable income that sustains family farms, strengthens local economies, and keeps multi-generational farms in the family.

But outdated zoning rules, misinformation, and political interference are blocking landowners from using their property for legal, productive purposes, even when projects meet all required safety and environmental standards. At its core, this is a property rights issue.

By creating clear, transparent siting and permitting processes and honoring local input, state and local leaders can ensure rural communities are treated fairly and have a say in decisions that impact their land and livelihoods, while contributing to American energy prosperity and independence. With the right policies and approaches, energy development can support energy security, preserve family-owned and operated land, and drive long-term rural economic growth. If you agree, sign and share our petition, supporting people’s right to use their land for clean energy.

About the Authors

Evergreen Action and the Private Property Rights Institute come to the issue of energy development and generation with different institutional priorities but a shared commitment to energy independence, individual freedoms, and strong local economies.

Evergreen Action

Evergreen Action is a national policy and advocacy organization focused on advancing an equitable and thriving clean energy future.

The Private Property Rights Institute (PPRI)

The Private Property Rights Institute (PPRI), rooted in conservative principles, is committed to defending private property rights and limiting unnecessary government overreach.