Choosing the Best Locations for Solar Energy: Factors to Consider
- Yoann Hispa
- Aug 21
- 6 min read

Choosing the right location for a solar farm is crucial for its success. When selecting a site, developers must consider several factors. Geographical aspects like topography, climate, and solar irradiance are vital. Proximity to existing grid infrastructure is also important; building near power lines or substations reduces connection costs and complexity.
Similarly, regulatory and community factors are key for determining solar site selection and layout. Understanding local zoning laws, environmental regulations, and potential community opposition can prevent roadblocks during development. Ultimately, selecting a suitable solar farm location is a complex process requiring careful consideration of environmental, economic, and social factors. This guide will walk you through these factors.
Best Locations for Solar Energy
The geographic location significantly affects the potential for utility-scale solar energy. The best places for solar energy are usually locations with high solar irradiance, as it directly influences the amount of energy that can be generated. The size and location of a solar energy installation also determine whether it is distributed or utility-scale.
Research has shown that cool places with high solar irradiance are the best locations for capturing solar energy. States that aren't known for being sunny, like Illinois, have excelled in solar energy development. In the United States, regions with the highest total buildable acres for utility-scale solar PV development have been identified using GIS analytics and social preference data.
The selection of the best locations for utility-scale solar energy involves careful consideration of multiple factors, including geographic location, irradiance levels, and land availability. Ongoing research continues to assess and identify regions with high solar potential, contributing to the strategic planning and expansion of utility-scale solar energy projects globally.
Choosing the Best Locations for Solar Energy: Factors to Consider
When developing a solar farm, selecting the right location is a critical step that can significantly impact the project's efficiency, cost, and long-term success. Solar developers must evaluate a range of factors, from environmental conditions to regulatory requirements, to ensure the site aligns with energy production goals and operational feasibility.
1) Land Suitable for Solar Farms
The land needed for utility-scale solar projects varies greatly depending on the installation's capacity and the solar technology used. Developers must secure land that is suitable for solar installations and available for purchase or lease, often involving negotiations with landowners or local communities. Generally, a utility-scale solar farm requires about 5 to 10 acres per megawatt (MW) of installed capacity. This means a 100 MW solar farm could need between 500 to 1,000 acres.
Ground-mounted solar installations require significant, relatively flat land, clear of obstructions like trees or buildings that could shade the panels and reduce efficiency. Soil conditions must also be suitable for mounting structures.
An ideal site should have an abundance of solar irradiation, meaning it receives plenty of unrestricted sunlight throughout the day, although recent advancements in solar panel technology allow solar panels to produce energy even on cloudy days. A tool that developers can use to estimate energy output from a solar farm on a specific parcel is an 8760 Report. An 8760 Report examines and analyzes the expected energy generation (or load) for every hour across a span of 12 months. The model simulates the output for all 8,760 hours within the specified time frame, allowing for a comprehensive understanding of the project's performance.
2) Zoning & Permitting
The development of utility-scale solar projects involves several key stages, including permitting processes and zoning. These stages address various factors that influence the ease of constructing solar farms, such as site accessibility, ground conditions, and the availability of local labor and materials.
Zoning regulations play a significant role in the timeline and cost of solar farm development. Projects must comply with local land-use laws, which may restrict certain areas from being used for solar energy. The permitting process can be complex and time-intensive, requiring multiple approvals from local, state, and sometimes federal authorities.
3) Land Accessibility
Site accessibility is critical for solar site selection. The site must allow easy access for heavy machinery and equipment needed to install solar panels. Ground conditions are equally important. The land should be relatively flat and free of obstructions like trees or buildings that could cast shadows on the panels and reduce their efficiency. Additionally, the soil must be stable enough to support the mounting structures.
4) Grid Connection: Substations & Transmission
One of the most critical aspects of any solar project is the grid connection. Substations are critical to the infrastructure of utility-scale solar energy, acting as a key link between power generation and end users. They transform the electricity generated by solar farms to suitable voltage levels for long-distance transmission. This step is essential to minimize energy loss and ensure electricity reaches consumers at the correct voltage.
The efficiency of power transmission is heavily influenced by the proximity of solar farms to substations. Shorter distances mean reduced transmission losses, making it crucial to consider substation locations when planning solar farm sites. Substation capacity and existing grid infrastructure must also be evaluated to ensure compatibility with the project's needs.
Locational Marginal Price (LMP)
Locational Marginal Price (LMP) is a critical factor that solar farm investors must consider when sourcing the best places for solar energy. LMP refers to the cost of delivering an additional unit of energy to a specific location at a specific time. It varies based on demand, supply, and the capacity of the transmission network, and it can significantly impact the profitability of a solar project.
For a solar farm, the energy produced is typically sold to the grid, and the price received for this energy is often based on the marginal unit. Higher LMPs mean higher revenue for the solar farm, making locations with consistently high LMPs more attractive to investors. Conversely, areas with lower LMPs might yield lower returns, potentially making them less viable for solar investment.
Available Transfer Capacity (ATC)
Available Transfer Capacity (ATC) measures the additional electrical power that can be reliably transferred over the transmission network while meeting all safety requirements. This data is essential in the energy sector, as it helps operators determine how much power can be added to the grid without risking instability or reliability issues. Utility-scale development projects depend on existing grid capacity or require grid upgrades to proceed.
The LandGate platform is a valuable tool for analyzing LMP and ATC. Subscribers can access substation details that include comprehensive substation data, allowing for effective utility-scale solar site selection.
5) Environmental Impact Considerations
Environmental impact assessments (EIAs) are a crucial part of permitting. These assessments evaluate potential environmental effects of the project and propose measures to minimize harm. They typically examine factors such as impacts on wildlife, water resources, and local ecosystems, ensuring the project aligns with environmental standards.
Solar developers can use LandGate's comprehensive Environmental Reports to conduct due diligence on properties they're interested in developing for solar farms, wind farms, data centers, and more. These reports offer a concise view of the various protected lands, species, and resources across the United States in order to provide a snapshot view of challenges and potential delays your project might face, detailing areas of high, moderate, and low risk, in addition to providing extensive data on the factors.
Solar Site Selection Software
In the rapidly expanding world of renewable energy, finding the perfect site for your solar project can be a challenging task, but utilizing the right site planning software can help streamline the process and get projects to the queue faster. LandGate's solar site selection software is an example of a tool solar developers can use to plan effective projects and conduct due diligence.
The platform leverages advanced data science and machine learning algorithms to provide you with comprehensive, real-time insights into potential site locations for your solar energy projects. It evaluates and ranks sites based on various factors such as solar irradiance, land topography, proximity to transmission lines, environmental constraints, and local regulations.
LandGate's tools for solar farm due diligence allow you to model full utility-scale projects instantly:
Get your solar projects into the queue & financed faster
Determine buildable area with custom setbacks/exclusions & exportable pricing data
Evaluate any solar project in minutes with fully integrated data and potential revenue modeling
Site analysis, due diligence, and feasibility studies utilizing outputs for interconnection queue submissions or utility RFPs
Industry standard outputs & economics including 8760 reports and complete feasibility studies
LandGate's Platform doesn't just provide data; it delivers actionable insights. It allows you to determine the best states for solar farms, visualize and analyze the data in an intuitive and user-friendly interface, examine an interactive solar energy potential map, and aid in site selection and layout, thus enabling you to make informed decisions quickly and confidently.
