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Repowering and decommissioning solar and wind energy projects
When permitting commercial, utility-scale solar and wind energy projects, it is important to understand the repowering and decommissioning process. As with all energy infrastructure, solar and wind energy systems have an expected lifespan, generally 20 to 30 years. If land is being leased for the system, then this lifespan should be reflected in the lease agreement.
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Repowering
Due to normal wear and tear, new software, or engineering innovations, it can be necessary to replace components on a solar or wind energy system prior to the end of its lifespan. When a solar or wind developer replaces components of the system, it is referred to as repowering.
- Can occur before the end of a project’s lifespan
- Replaces components due to new technology or for repairs
- May require permits depending on the scope of work or impacts to surrounding land uses
- May extend the total lifespan of the project
- Applies to both solar and wind projects
Community leaders should ask two questions when a solar or wind developer indicates they will be repowering:
- Will the changes impact the “footprint” of the system on the land
- Will the changes impact the site planning requirements in existence at the time the project was initially permitted or that are now included in the ordinance?
For example, if a wind developer decides to replace the blades on wind turbines because they can generate more power with longer blades, these longer blades will likely impact the required setbacks for the project. This means the “footprint” of the project has changed, despite the fact that the blades do not touch the ground. The wind developer would need to submit an updated site plan showing that the ordinance’s setback requirements can still be met with the longer blade lengths.
Repowering could extend the total lifespan of a solar or wind energy system, provided that, if the system is on leased land, the lease agreement continues, as well as the power purchase agreement with the utility provider. It is possible that while the projected lifespan of a solar or wind energy conversion system is 20 to 30 years, a repowering could take place after just 10 years, due to new technologies or other factors.
When reviewing initial applications from wind or solar developers, it is good practice for local officials to ask the developer if they foresee any upgrades prior to the end of the project’s lifespan that would impact ordinance requirements and how they intend to incorporate those long-term upgrades into the initial site planning. Landowners should also ask these types of questions when reviewing draft land lease agreements.
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Decommissioning
Decommissioning, or deconstruction, of a solar or wind energy system is when all of the system’s components are removed from the site. The state of Illinois helps communities protect themselves during decommissioning by requiring these commercial, utility-scale solar and wind energy projects to provide financial assurance at the time the initial permit is granted. The financial assurance agreement and details of decommissioning are typically submitted to the County Board in a deconstruction plan.
- Occurs when the project’s lifespan has ended, and the facility owner does not wish to repower and/or the land lease has expired
- Components of the project are removed from the landscape
- Subject to a deconstruction plan and financial assurance submitted to the county or city
- Applies to both solar and wind projects
Financial assurance could be provided through a bond or letter of credit demonstrating that the developer shall have the resources to pay for the removal of the project’s components when the time comes. Financial assurance demonstrates that the developer will cover the costs to remove the project, which protects the landowners who have entered into lease agreements, as well as the surrounding community.
In Illinois, Public Act 102-1123 limits the standards for deconstruction or decommissioning that counties are allowed to enforce so that they are not more restrictive than those found in the Illinois Department of Agriculture’s Agricultural Impact Mitigation Agreements. This includes the levels at which financial assurance is provided to a community by the solar or wind developer.
- The full financial assurance will be phased in over 11 years, with 10% of the estimated costs of deconstruction required to be covered by financial assurance on the “Commercial Operation Date,” of the project. The Commercial Operation Date refers to the first day that the wind or solar energy project produces power for commercial sale.
- At six years, the amount of financial assurance required bumps up to 50% of the estimated costs of deconstruction.
- At 11 years, the developer must provide financial assurance to cover 100% of the estimated deconstruction costs.
The IDOA has templates of Agricultural Impact Mitigation Agreements to help landowners to mitigate the impacts of construction.
Agricultural Impact Mitigation Agreement templates
Decommissioning wind turbines
The removal of all components will involve felling the entire turbine by using a detonation at the base to knock the tower down or using a crane to dismantle the turbine piece by piece. Decommissioning typically involves removing the pad for the tower to a certain depth below grade and removing underground cables if fewer than 5 feet below grade. If the turbine is on leased land, the landowner can negotiate with the developer if some components stay. For instance, the landowner may want the access road for the turbine to stay to use it for farm equipment.
WINDExchange is a federal resource that includes an overview of wind tower repowering and decommissioning, encompassing waste disposal and recyclability as well. Explore their End-of-Service Guide.
Decommissioning solar energy projects
The process will include removal of the panels and their footings, as well as underground cables if fewer than 5 feet below grade. Many posts for the solar panel mounting racks are driven directly into the ground, but it will be important for your community to note what types of installation methods will be used to ensure the deconstruction plan submitted by the developer includes adequate removal. Just as with wind turbine decommissioning, a landowner could negotiate that the access road remain in place.
What next?
Once a wind or solar energy project is fully decommissioned, the land can be returned to agricultural use and will be restored per the deconstruction plan that the developer files with the County Board. Deconstruction plans are sometimes updated throughout the project's life to reflect updated costs.