TACIR staff presents draft utility‑scale solar report; recommends expanded resources and decommissioning safeguards

TACIR staff presented a draft report addressing utility‑scale and residential solar development and sought commission feedback before producing a final report for the general assembly.

Miss Berry and research director David Lewis said the report responds to Public Chapter 1043 (Acts of 2022) and addresses 14 points about solar development. Staff framed the distinction between utility‑scale projects (measured in megawatts and often sold into wholesale markets) and residential installations, and noted Tennessee currently has model ordinances and local regulations in some jurisdictions. Berry said stakeholders’ concerns include property rights, land use, aesthetics, environmental effects and protection of landowners; Lewis added that zoning and local land‑use authority determine where jurisdictions can regulate solar.

The report identifies at least 26 known projects in development (mostly in West Tennessee) and cites TVA’s planning to add up to 10,000 megawatts of solar by 2035; staff estimated that if all TVA plans were sited in Tennessee they would use roughly 100,000 acres (about 1% of state farmland) while noting farmland loss historically has been much larger. The report describes policy tools including agrivoltaics, conservation easements, brownfield redevelopment funds and a 2022 decommissioning law (Public Chapter 866) that requires a decommissioning plan and financial assurance.

Staff also reported residential‑market consumer‑protection concerns: between 2020 and 2023 the attorney general’s Division of Consumer Affairs received complaints linked to nine residential solar companies, with most complaints concentrated at two firms and some installations priced near $100,000. The report recommends (1) expanding the Tennessee Department of Environment and Conservation Office of Energy Programs web resources for local governments and consumers and (2) considering modifications to consumer‑protection measures, including reviewing the civil penalty maximums under the Tennessee Consumer Protection Act.

Commissioners pressed staff on tax treatment, local revenue impacts, eminent domain and battery storage for utility‑scale projects. Lewis described the assessment framework: solar land and equipment can be assessed as utility property (commonly at 55% of fair market value if sold to TVA or a local power company), industrial/commercial (40% if used on site), or remain in an agricultural classification (25%). He warned landowners should consider rollback taxes and long‑term lease commitments when negotiating options with developers.

Staff said they will update the project list, incorporate members’ suggested data (governance and board compensation for utilities, local tax modeling) and present a final report at the next commission meeting.