Trees, Forests and People (Jun 2024)
Economic comparison of loblolly pine and solar power in South Georgia, United States
Abstract
In the face of deforestation from urbanization and population growth, there is a potential for an additional loss of forests from solar power generation as forest landowners may look to alternative sources of income. We compare the profitability of loblolly pine (Pinus taeda) plantations and solar power generation in South Georgia. The analysis was completed at two different scales, one acre (0.405 ha) and five acres (2.02 ha), based on the large number of small acreage forest landowners in the state. The Land Expectation Values (LEVs over 25 years project cycle) for a 350 kW (occupying one acre or 0.405 ha) and a 1 MW (occupying five acres or 2.02 ha) solar power systems are -$30,183 and $29,607 at an 8 % interest rate, respectively. In comparison, LEVs for one acre (0.405 ha) and five acre (2.02 ha) loblolly pine stands (at the site index 80 ft/24.4 m) for the same rotation cycle are $1,380 and $6,900 at a 6 % interest rate and $611 and $3,055 at an 8 % interest rate, respectively. The potential profitability of solar power systems varies, depending on whether the solar generation and pricing are high enough to overcome the significant installation, upkeep, and recycling costs. Since the potential profitability of the larger-scale solar power systems is significantly higher than loblolly pine stands at around five acres, there is a chance that small family forest landowners could convert their forestlands into solar farms, especially if their forestlands are close to a high-capacity power transmission line. This information could feed into ongoing policy deliberations on promoting conservation and renewable energy generation at the state level and beyond.
