• A significant portion of U.S. farmland is used to grow corn for ethanol. However, a 2022 study found that the biofuel produced from this crop is 24% more carbon-intensive than straight gasoline. This has led to research exploring whether the farmland used for corn-based ethanol would be better served as a site for solar energy installations.
• The study found that solar panels generate 12 times more energy and 13 times more revenue per acre than corn. Still, without subsidies, solar projects would result in financial losses due to the costs associated with building and operating them.
• Federal incentives from the Inflation Reduction Act ultimately make solar farming more profitable than corn. It shifted the financial outlook of these renewable energy projects from a $5,103 per acre deficit to a $1,580 per acre profit.

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Full Story

Each year, about 90 million acres of corn are planted in the U.S. Approximately 40% of it helps make ethanol, a key ingredient in gasoline. However, a recent study examines whether farmland would be better served to produce renewable solar power.

Is corn-based ethanol environmentally friendly?

Research funded by the Department of Energy and published in 2022 found that corn-based ethanol is 24% more carbon-intensive than gasoline.

Experts attributed land use changes required for crop production as one of the main factors contributing to this biofuel’s higher levels of greenhouse gas emissions.

Could farmland be better utilized for solar energy Instead?

Aaron Smith, chair of Agricultural and Resource Economics at UC Berkeley, examined whether installing solar panels on farmland currently used for growing corn-based ethanol is more beneficial. His study found that solar panels generate about 12 times more energy per acre and produce 13 times more revenue per acre than corn.

However, when Smith factored in the costs associated with building and operating a solar farm versus planting and cultivating corn, the profitability comparison shifted dramatically.

Solar energy projects create a financial loss of $5,103 per acre. Additionally, corn farming yields a profit of $170 per acre. However, this is without considering the impact of federal renewable energy incentives.

How do government policies affect the profitability of solar energy?

The Inflation Reduction Act, signed by former President Joe Biden, provides tax credits that reduce solar project costs, making them financially viable. With subsidies, solar farms can generate $1,580 per acre, far surpassing corn farming profits.

What happens next?

President Donald Trump has ordered a 90-day hold on Inflation Reduction Act funding. However, his administration cannot fully dismantle the law’s renewable energy incentives without congressional approval.

As a result, government funding is expected to continue making solar farms significantly more profitable than corn cultivation for ethanol production. Meanwhile, according to the studies, solar energy also produces more power with lower emissions than corn-based ethanol.