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That’s according to a new Heatmap poll — but it is still possible to win their support.
Attending a public hearing is the most important civic duty that nobody actually does. (Well, not nobody — we’ll get into that.) But despite attendance at public hearings being one of the most effective ways to directly shape one’s community, the average American probably isn’t going. And heaven forbid you ask them to speak.
Heatmap’s latest poll looked into, among other things, the actions someone would take if they had concerns about a hypothetical clean energy project in their area. What we learned is that Americans are more willing to join a lawsuit (41%) than they are to talk at a public hearing (30%). But there is a demographic that is bolder than the rest of us glossophobes — people who owned 50 or more acres of land were nearly one-and-a-half times as likely (43%) to speak up in such a scenario. Overall, these large landowners were also more likely to say they’d attend a public hearing about a clean energy project (71%) than the general population (60%).
Community opposition is one of the leading causes of delays and cancellations of renewable projects, with about one-third of wind and solar siting applications in the last five years killed by local pushback. It’s also true that Republicans are more likely to live in rural areas with renewable energy development, meaning “conservatives’ opposition could prove more decisive to the future of wind and solar than liberals’ support,” The Washington Postwrote last year. (Heatmap’s polling backs that up: 70% of the large landowners we surveyed said they plan to vote for Donald Trump, compared to 17% who said they intend to vote for Kamala Harris.)
Clean-energy advocates who work with rural partners, including large landowners, told me they weren’t surprised to hear of the group’s high levels of in-person engagement. “Obviously, it takes land to build wind and solar, and a lot of that land is in rural America,” Jane Kleeb, the founder and director of Bold Alliance, an environmental advocacy organization based out of Nebraska that helps landowners navigate new infrastructure projects, told me.
Perhaps unsurprisingly, the biggest concern Heatmap encountered among large landowners was that potential clean-energy projects could “take up farmland” (70%), followed by worries that they’d “harm wildlife or local nature/environmental sites” (58%; this is also the highest concern among the general population, cited by 54% of all respondents).
Kleeb said she often encounters these anxieties when working with partners in rural states. “When we’re talking with a community that for decades has supported land being used to grow ethanol, which is also an energy source — solar will take much less land and not use water, which is a depleting resource in the Midwest and all across the country,” she pointed out. (To be clear, Bold Alliance does support ethanol.) As for environmental concerns, “wind and solar have way less impact than fossil fuels on wildlife, period,” Kleeb said. “There’s no comparison. It’s not even a close call.”
Another worry large landowners had that stood out from the general population was that nearby land might be developed “by non-local companies” (57% of large landowners vs. 37% of the general population). “What’s not been happening well is that some clean-energy companies will come into a community, and they won’t disclose where the projects are going,” Kleeb said, adding that “community after community that we’re engaging with wants to know that from the beginning, and they want to be engaged in the discussions about where a project may or may not be better suited to be placed.”
While Heatmap specifically looked at who would be the most likely to speak out at a public hearing if they had concerns about a clean-energy project in their area, Kyle Unruh, the Idaho and Montana policy manager for Renewable Northwest, which works with regional partners to create a cleaner grid, said he’s seen that landowners will also “advocate for development on either their own land — as a means of making feasible the continued ownership of a small farm — or on behalf of a fellow landowner who should be entitled to their own property rights and decisions about what happens on their private land.”
At the same time, Unruh has seen landowners testify that they believe development on a nearby property could hurt their property values — a concern raised by 45% of the large landowners who responded to Heatmap’s survey — though he stressed that the claim that renewable energy development decreases nearby property values “is not borne out by the research.” He cited this worry as another reason large landowners evidently show up and speak out at public hearings more than their suburban and urban neighbors. “Landowners tend to have an elevated personal interest in whether energy development takes place, given this development has the real potential to increase the value of their land or the perceived effect of reducing the value or desirability of their land,” he told me.
On the flip side, when Heatmap presented landowners with reasons why they might allow renewable projects to be developed on their land, people living on six or more acres were more likely to pick “none of the above” (44%) in Heatmap’s polling than tax benefits (29%), diversifying their income (28%), or starting an agrivoltaics venture with solar generation and agriculture co-located on the same property (20%), among other options. Of potential upsides“having a long-term source of income” (35%) had the plurality, and “environmental benefits” (31%) also held high appeal.
Clean-energy developers should be making a concerted effort to reach out to large landowners from the start, but not just because they’re one of the more vocal contingents at the local town hall. More often than not, the energy transition will take place in literal backyards, and many opportunities for collaboration or partnership are lost when misinformation, conspiracies, or sneaky development tactics lead instead.
“The climate movement, in general over the past decade, has missed the boat here,” Kleeb of Bold Alliance told me. “There’s a major opportunity to engage with the rural folks who will be shouldering the responsibility of making sure that wind and solar are being built.”
The Heatmap poll of 5,202 American adults was conducted by Embold Research via online responses from August 3 to 16, 2024. The survey included interviews with Americans in all 50 states and Washington, D.C. The margin of sampling error is plus or minus 1.4 percentage points.
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And more of the week’s top news about renewable energy conflicts.
1. Nassau County, New York – Opponents of Equinor’s offshore Empire Wind project are now suing to stop construction after the Trump administration quietly lifted its stop-work order.
2. Somerset County, Maryland – A referendum campaign in rural Maryland seeks to restrict solar development on farmland.
3. Tazewell County, Virginia – An Energix solar project is still in the works in this rural county bordering West Virginia, despite a restrictive ordinance.
4. Allan County, Indiana – This county, which includes portions of Fort Wayne, will be holding a hearing next week on changing its current solar zoning rules.
5. Madison County, Indiana – Elsewhere in Indiana, Invenergy has abandoned the Lone Oak solar project amidst fervent opposition and mounting legal hurdles.
6. Adair County, Missouri – This county may soon be home to the largest solar farm in Missouri and is in talks for another project, despite having a high opposition intensity index in the Heatmap Pro database.
7. Newtown County, Arkansas – A fifth county in Arkansas has now banned wind projects.
8. Oklahoma County, Oklahoma – A data center fight is gaining steam as activists on the ground push to block the center on grounds it would result in new renewable energy projects.
9. Bell County, Texas – Fox News is back in our newsletter, this time for platforming the campaign against solar on land suitable for agriculture.
10. Monterey County, California – The Moss Landing battery fire story continues to develop, as PG&E struggles to restart the remaining battery storage facility remaining on site.
A conversation with Biao Gong of Morningstar
This week’s conversation is with Biao Gong, an analyst with Morningstar who this week published an analysis looking at the credit risks associated with offshore wind projects. Obviously I wanted to talk to him about the situation in the U.S., whether it’s still a place investors consider open for business, and if our country’s actions impact the behavior of others.
The following conversation has been lightly edited for clarity.
What led you to write this analysis?
What prompted me was our experience in assigning [private] ratings to offshore wind projects in Europe and wanted to figure out what was different [for rating] with onshore and offshore wind. It was the result of our recent work, which is private, but we’ve seen the trend – a lot of the big players in the offshore wind space are kind of trying to partner up with private equity firms to sell their interests, their operating offshore wind assets. But to raise that they’ll need credit ratings and we’ve seen those transactions. This is a growing area in Europe, because Europe has to rely on offshore wind to achieve its climate goals and secure their energy independence.
The report goes through risks in many ways, including challenging conditions for construction. Tell me about the challenges that offshore wind faces specifically as an investment risk.
The principle behind offshore wind is so different than onshore wind. You’re converting wind energy to electricity but obviously there are a bunch of areas where we believe it is riskier. That doesn’t mean you can’t fund those projects but you need additional mitigants.
This includes construction risk. It can take three to five years to complete an offshore wind project. The marine condition, the climate condition, you can’t do that [work] throughout the year and you need specialized vehicles, helicopters, crews that are so labor intensive. That’s versus onshore, which is pre-fabricated where you have a foundation and assemble it. Once you have an idea of the geotechnical conditions, the risk is just less.
There’s also the permitting process, which can be very challenging. How do you not interrupt the marine ecosystem? That’s something the regulators pay attention to. It’s definitely more than an onshore project, which means you need other mitigants for the lender to feel comfortable.
With respect to the permitting risk, how much of that is the risk of opposition from vacation towns, environmentalists, fisheries?
To be honest, we usually come in after all the critical permitting is in place, before money is given by a lender, but I also think that on the government’s side, in Europe at least, they probably have to encourage the development. And to put out an auction for an area you can build an offshore wind project, they must’ve gone through their own assessment, right? They can’t put out something that they also think may hurt an ecosystem, but that’s my speculation.
A country that did examine the impacts and offer lots of ocean floor for offshore is the U.S. What’s your take on offshore wind development in our country?
Once again, because we’re a rating agency, we don’t have much insight into early stage projects. But with that, our view is pretty gloomy. It’s like, if you haven’t started a project in the U.S., no one is going to buy it. There’s a bunch of projects already under construction, and there was the Empire Wind stop order that was lifted. I think that’s positive, but only to a degree, right? It just means this project under construction can probably go ahead. Those things will go ahead and have really strong developers with strong balance sheets. But they’re going to face additional headwinds, too, because of tariffs – that’s a different story.
We don’t see anything else going ahead.
Does the U.S. behaving this way impact the view you have for offshore wind in other countries, or is this an isolated thing?
It’s very isolated. Europe is just going full-steam ahead because the advantage here is you can build a wind farm that provides 2 or 3 gigawatts – that’s just massive. China, too. The U.S. is very different – and not just offshore. The entire renewables sector. We could revisit the U.S. four or five years from today, but [the U.S.] is going to be pretty difficult for the renewables sector.
What I’m hearing from developers and CEOs about the renewable energy industry after the Inflation Reduction Act
As the Senate deliberates gutting the Inflation Reduction Act’s clean electricity tax credits, renewable energy developers and industry insiders are split about how bad things might get for the sector. But the consensus is that things will undoubtedly get worse.
Almost everyone I talked to insisted that solar and wind projects further along in construction would be insulated from an IRA repeal. Some even argued that spiking energy demand and other macro tailwinds might buffer the wind and solar industries from the demolition of the law.
But between the lines, and beneath the talking points and hopium, executives are fretting that lots of future investments are in jeopardy. And the most pessimistic take: almost all projects will have their balance sheets and time-tables impacted in some way that’ll at minimum increase their budget costs.
“It’s hard to imagine, if the legislation passes in its current form, that it wouldn’t impact all projects,” said Rob Collier, CEO of renewable energy transaction platform LevelTen.
Even industry analysts with the gloomiest views of the repeal say there’s plenty of projects that will keep chugging along and might even become more valuable to investors if they’re close enough to construction or operation. This aligns with recent analysis from BloombergNEF, which found the House bill would diminish our nation’s renewables build-out – but not entirely end its pace.
“The more useful way to break down which project may be hit the hardest is where the projects are going to fall in their development life-cycle,” Collier said. “Projects that have either started construction or have the ability to start construction … are going to very likely rise in terms of their appeal and attractiveness and those projects will be at a premium, if they’re able to skate through the legislative risk and qualify for tax credits.”
There is a more optimistic industry view that believes increased project costs will just be passed along to consumers via higher electricity prices. The American people will in essence have to pick up the tab where the federal tax code left it. Optimists also cite the increased use of power purchase agreements, or PPAs, between renewables developers and entities who need a lot of electricity, like big tech companies. By signing these PPAs, buyers are subsidizing the construction of projects but also insulating themselves from the risk of rising electricity prices.
The most bullish perspective I heard was from Nick Cohen, the CEO of Doral Renewables, who told me deals like these combined with rising premiums for quick energy on the grid may obviate lost credits in a “zero-incentive environment.”
“It’s not the end of the world,” Cohen told me. “If you’re in construction or you’re going to be in construction very soon, you’re fine.”
But Collier called Cohen’s prediction an “experiment” in customers’ willingness to pay for new energy: “If we’re talking about 40%, 50%, 60% of a project’s capital stack now being at risk because of tax credits, those are pretty large price increases.”
I spoke to multiple companies that have been inking massive deals as this legislation has progressed — although many were not nearly as sanguine about the industry’s future prospects as Doral. Like rPlus Energies, which disclosed last week that it closed a commitment for more than $500 million in tax equity investments for a solar and storage project in Utah. rPlus CEO Luigi Resta told me that the legislation “certainly has posed concern from our investors and from the organization” but the project was so far along that the tax equity investment market wasn’t phased by the bill.
“Many people in my company, myself included, have been doing this for more than 20 years. We’ve seen the starts and stops related to ITC and PTC in solar and wind, in multiple cycles, and this feels like another cycle,” Resta told me. “When the IRA passed, everybody was exuberant. And now the runway looks like it may have a cliff. But for us, our mantra since the beginning of the year has been ‘proceed with caution, preserve and protect.’”
However, crucially, it is important to focus on how that caution looks: Resta told me the company has completely paused new contracting while the company is completing the projects it is currently developing.
One government affairs representative for a large and prominent U.S. renewables developer, who spoke on the condition of anonymity to preserve relationships, told me that “whatever rollback occurs will just result in higher electricity prices over time.” In the near term, the only language that would truly gut projects in progress today would be “foreign entity of concern” restrictions that would broadly impact any component even remotely connected to Chinese industries. Similar language all but kneecapped the entire IRA electric vehicle consumer credit.
“It included definitions of what it means to be a foreign company that were really vague,” the government affairs representative said. “Anyone who does any business with China essentially can’t benefit from the credit. That was a really challenging outcome from the House that hopefully the Senate is going to fix.” If this definition became law, this source said, it would be the final straw that “freezes investment” in renewable energy projects.
Ultimately, after speaking to CEO after CEO this week, I’ve been left with an impression that business activity in renewables hasn’t really subsided after the House bill passed, and that it’ll be the Senate bill that undoubtedly defines the future of renewable energy for years to come.
Whether that chamber remains the “cooling saucer” it once was will be the decider.