Looking For Value In Wastelands: Developing Renewable Energy On Degraded And Polluted Lands

The surge of activity in the solar energy market, spurred by government incentives, has created new and more efficient solar technologies, but issues surrounding land- and water-use have backlogged the full-scale development of solar farms. This paper explores siting solar power plants on degraded or polluted lands, such as mine tailings impoundments. Historically, mining and has been integral to Arizona?s economy, but has dwindled in relevance due to urban pressures and environmental regulations. Currently, it is legal to site solar power plants on degraded or polluted lands, but the question remains whether the economics of this degraded lands solar development is more favorable than developing pristine land. Therefore, we explore economics of developing mine tailings impoundments at both the institutional and financial level. Methods of research for this paper were interviews with government regulators, environmental advocacy organizations, farmers, and mining company executives. Financial models using extant tax incentives show a positive net present value for the installation of solar power plants, even when accounting for the costs of land remediation.