New research from the University of Missouri shows wind and solar farms can bring economic gains to rural communities.
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 MU Center for Rural Energy Security analyzed the economic impact of renewable energy in rural counties.
Adrienne Ohler, Mizzou economist and lead researcher on the study, analyzed economic factors in counties with renewable power plants to those without from 2001 to 2023.
The economic advantage of solar energy development in rural counties materialized in the utilities, construction and transportation sectors, which saw 10%-20% increases in employment and wages. The communities hosting wind energy infrastructure saw an increase in gross domestic product by approximately 7%.
Ohler, who is from a rural area herself, 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,” she said. “There are good reasons to adopt it and good reasons to set up ordinances and permitting that would limit what it would look like in a community.”
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 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.
The report states that neither wind nor solar development were associated with declining agricultural GDP, employment or wages, suggesting that renewable energy development does not substantially diminish agricultural economic activity.
Nearly 10% of Missouri’s electricity comes from wind and just more than 1% comes from 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 that 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?” Owen said. “Those are the things that I think rural communities certainly do care about, should care about.”
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.”