By: Emily Apadula, Policy Analyst
Generally, decommissioning requires the removal of systems and the restoration of land or infrastructure to its original condition or for a new use. When referring to a photovoltaic system, decommissioning usually includes removing the PV array, removing the balance-of-system (other parts of the system, excluding modules, such as wiring, inverters, mounting system, etc.), and restoring the land. While it might not seem like the most exciting topic, legislative interest in solar decommissioning has experienced a major uptick in recent years, and for good reason. While solar panels have a lifespan of 25-30 years, it is estimated that by 2030, end-of-life modules in the United States could total 1 million metric tons (Mt), and 10 million Mt by 2050. As the solar market continues to grow, so does the significance of policies to ensure proper decommissioning of these sites.
Policy Landscape
Decommissioning policies and requirements can vary greatly from state to state, granting certain jurisdictional powers to either state or local governments. These divisions of power generally fall into one of the following categories.
Local Option Only: No statewide policy, granting the local governments sole jurisdiction to implement solar decommissioning rules.
Local Option with State Model Template: No statewide policy, granting the local governments sole jurisdiction to implement solar decommissioning rules. However, the state provides a model template for requirements that localities can use.
Statewide/Local Hybrid: Statewide decommissioning statute or rule that may give local governments the option to impose stricter requirements.
Statewide: Statewide decommissioning statutes or rules are required.
Statewide Optional: Decommissioning statutes or rules that can be administered in lieu of local regulations.
Solar Decommissioning Over the Years: 2016
In 2016, solar decommissioning regulation was largely left up to local jurisdictions. At the time, decommissioning rules in 41 states were at the discretion of local governments. Of these states, Massachusetts and North Carolina included model or template ordinances to provide guidance to local governments, and Virginia had a statewide requirement that local government ordinances addressing solar siting must also address decommissioning.
Source: North Carolina Clean Energy Technology Center, Working Paper: State Regulation of Solar Decommissioning.
At this time, only three states had statewide solar decommissioning rules- California, Hawaii, and New Jersey. These rules, however, only applied under certain circumstances and only California and Hawaii required financial security.
A majority of states counted as having some form of decommissioning policy did not actually have specific statewide rules, but instead required a decommissioning plan under certain circumstances. Louisiana required plans to be submitted for solar facilities on state-owned land. While in Nebraska and Oklahoma, plans must be submitted in order to receive a solar easement. Finally, New Hampshire and Vermont required plans to be submitted for solar facilities over a certain size - 30 MW in New Hampshire and 1 MW in Vermont.
While not a mandatory statewide decommissioning rule, Washington did offer an optional certification process. This certification was in lieu of all individual local permits that would otherwise be required.
Solar Decommissioning Over the Years: 2021
Five years later, in 2021, the policy landscape remained relatively stagnant. Over this time period, only five new states adopted some form of solar decommissioning policies. (While not included in the previous map, the policies for Washington and Virginia were in place back in 2016).
Source: Curtis, Taylor L., Ligia E.P. Smith, Heather Buchanan, and Garvin Heath. 2021. Survey of Federal and State-Level Solar System Decommissioning Policies in the United States. Golden, CO: National Renewable Energy Laboratory. NREL/TP-6A20-79650. https://www.nrel.gov/docs/fy22osti/79650.pdf
Of these new policies, three states (Minnesota, Montana, and North Dakota) implemented statewide requirements, while the remaining two states (Illinois and Wyoming) implemented hybrid rules.
Solar Decommissioning Over the Years: 2023
However, just two years later, the number of states with solar decommissioning policies would more than double, with 31 states having enacted some form of legislation on the subject.
Map of Solar Decommissioning Policy in the United States (2023)
Source: North Carolina Clean Energy Technology Center (October 2023).
As stated above, state decommissioning policies often vary by jurisdictional power; however, they also vary on the specific requirements included in the policies. The majority of states require that a decommissioning plan be submitted at the beginning or before construction of a project, detailing what steps will be taken to return the land to its original state. In addition, many states require a financial assurance in addition to, or as a part of, these decommissioning plans. These financial requirements ensure that there will be sufficient funds available to perform the required decommissioning. As of October 2023, only five states with solar decommissioning policies do not specifically require a financial assurance - Maryland, Massachusetts, New Jersey, Rhode Island, and Wyoming.
Another aspect of decommissioning policies seen among states is the focus on agricultural lands. Several states have decommissioning policies solely for facilities located on agricultural lands. Connecticut, for instance, requires projects over 2 MW on prime farm or forestland return the land to productive agricultural use as a part of the decommissioning process. In addition to the usual decommissioning activities, this can include de-compacting soils, backfilling excavations with only native soils, revegetating (if necessary), testing and restoring soil for farming.
With the continued growth of the U.S. solar market, it’s no surprise that legislators are seeking to ensure that these facilities are properly decommissioned at the end of their usefulness. Currently 32 states have enacted solar decommissioning policies, a majority of which have passed in just the last few years. This surge in legislative activity over a relatively short period of time clearly demonstrates the states’ interest in ensuring that solar facilities are decommissioned in a safe and standard manner. Looking forward, we can expect a continued interest in the decommissioning of solar and other clean energy facilities, including battery storage, and the recycling of these materials once they are decommissioned.
Solar Decommissioning Policies by State
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State |
Type |
Legislation |
Rule Overview |
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California |
Statewide/Local Hybrid |
As a condition of a self-renewing Solar Use Easement, a solar easement project owner must submit a decommissioning plan and financial assurance to the local city or county government with jurisdiction. The locality submits the application, decommissioning plan, and proof of financial assurance to the California Department of Conservation for review and final approval. Soil management and site restoration plans are also required and must include restoration to the same condition that existed at the time of approval for the solar use easement |
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Connecticut |
Statewide |
Applies to projects over 2 MW on prime farmland or prime forestland. Decommissioning and returning the land to productive agricultural use would include: removing solar arrays; removing racking posts completely from the ground by pulling them out (not just cutting them at ground level); removing foundations for inverters and transformers; de-compacting compacted soils; backfilling excavations with only native soils; revegetating (if vegetation disturbance is a result of decommissioning); removing access roads, drainage ditches, and detention ponds and backfilling using native soils to level the terrain (unless agreed upon by the landowner); and testing soil and incorporating needed amendments to restore the soil for farming. (As of October 2023, the changes from PA23-163 have not been integrated). |
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Hawaii |
Statewide |
As a condition of a Special Use Permit, the owner of a solar energy facility on agricultural lands with a soil productivity rating of B or C must comply with state decommissioning requirements and submit proof of financial assurance to the local county planning commission with jurisdiction prior to construction. The local county planning commission must submit all special use permit application documents, including financial assurance documents, to the Hawaii State Land Use Commission. |
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Illinois |
Statewide |
Solar facilities with capacity over 500 kW located on agricultural land owned by a third party must file an Agricultural Impact Mitigation Agreement outlining construction and deconstruction plans with the state Department of Agriculture and submit a deconstruction plan and financial assurance to the county government with jurisdiction prior to beginning construction. |
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Indiana |
Statewide |
Intent to decommission must be submitted to permit authority 60 days prior to end of commercial service. Structures, foundations, roads, gravel areas, and cables shall be removed from the site to a depth of 36 inches below grade. The ground must be restored to a reasonably similar condition to its condition prior to construction of the solar project. |
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Kentucky |
Statewide/Local Hybrid |
Local planning and zoning commissions have authority to supersede state decommissioning and setback rules here. Generation facilities must file a decommissioning plan to describe how facilities will be decommissioned and dismantled at the end of their useful life. Decommissioning plans shall remove all above-ground facilities and underground components to a depth of three feet, unless otherwise agreed to by the landowner. Plans shall return the land to a substantially similar state as was found prior to the start of construction. Interconnection components and other facilities shall be left in place for future use at the completion of decommissioning, unless requested by the landowner. A secure bond or other similar security for the project to assure financial performance of the decommissioning obligation is also required. |
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Louisiana |
Statewide |
In Louisiana, as a condition of approval for an Alternative Energy Source Lease (AESL), the owner of an alternative energy source facility located on state land must submit a decommissioning plan and financial assurance to the Louisiana Department of Natural Resources prior to commencing decommissioning activities. Within 60 days of completing decommissioning activities, the facility owner must notify the department and submit a decommissioning report that includes a summary of decommissioning activities and a description of any mitigation measures used during decommissioning. |
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Maine |
Statewide |
Requires that a decommissioning plan must be provided for the decommissioning of a solar energy development. For any portion of the development located on land classified as farmland any time within 5 years preceding the start of construction of the development, the plan must provide for the restoration of that farmland upon decommissioning sufficient to support the resumption of farming or agricultural activities. The plan must also include demonstration of current and future financial capacity, which must be unaffected by the owner's or operator's future financial condition, to fully fund decommissioning in accordance with an approved plan. |
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Maryland |
Statewide |
State statute requires a decommissioning plan to be submitted for solar projects – including major and minor solar systems, meaning those that produce more than 2 MW of electricity, or 2 MW or less, respectively -- except for residential solar systems that generate electricity for use on the same residential lot. No additional information is given about the decommissioning plan. |
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Massachusetts |
Local Option with State Model Template |
Massachusetts Model Zoning Bylaw for the Regulation of Solar Energy Systems |
Recommendations in the model bylaws include removal requirements for solar energy systems that cease operation. All physical components must be removed, solid and hazardous wastes must be disposed of according to applicable standards, and erosion from the site must be minimized through stabilization or re-vegetation. With agreement from the Site Plan review authority, owners/operators may leave landscaping and designated below-grade foundations in place to minimize vegetation disturbance or erosion. |
|
Michigan |
Statewide |
As part of the Farmland and Open Space Preservation program, in order to receive the tax incentives, the landowner must obtain a bond or irrevocable letter of credit as a surety tool in an amount sufficient enough to decommission the solar array and return the property to agricultural purposes. At the end of the deferment period the land must be returned to agricultural use. |
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Minnesota |
Statewide |
In Minnesota, as a condition of a site license, the owner of a large electric power generating plant with a capacity of 50 MW or more must submit a decommissioning plan and financial assurance to the Minnesota PUC. |
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Montana |
Statewide |
In Montana, the owner of a facility with a capacity of 2 MW or greater must submit (1) a decommissioning plan within 12 months prior to operation of the facility and (2) financial assurance at any time prior to the 15th year of the facility’s operation to the Montana Department of Environmental Quality. Decommissioning plans must be updated every 5 years after the facility is bonded. |
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Nebraska |
Statewide/Local Hybrid |
In Nebraska, the owner of a solar energy system who executes a Solar Agreement (e.g., easement) to secure a land right for a solar energy system must include within the solar agreement instrument a description of any decommissioning plans or financial assurance instruments required by the local jurisdiction where the solar energy system is located. |
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New Hampshire |
Statewide |
In New Hampshire, as a condition of approval for a Certificate of Site and Facility Application, the owner of an energy facility larger than 30 MW must submit a decommissioning plan and proof of financial assurance to the New Hampshire Site Evaluation Committee prior to construction of the facility. |
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New Jersey |
Statewide |
Solar generation facilities located on commercial farmland subject to the Right to Farm Act must submit a conservation plan which includes decommissioning to the local soil conservation district with jurisdiction. Solar generation projects located in the Pinelands Management area must submit a landscaping plan which includes decommissioning. |
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New York |
Statewide |
Chapter XVIII, Title 19 of NYCRR §900-1.2, §900-2.24, §900-10.2 |
As part of the final decommissioning and site restoration plan that must be submitted to the Office of Renewable Energy Siting in conjunction with other pre-construction compliance filings for facilities that cannot be completed or reach their end of life, a cost estimate is required for components removed four feet below grade in agricultural land and three feet below grade in non-agricultural land, as well as removal and restoration of any access road locations). The cost estimates must include a gross and net estimate, including projected salvage value, and a 15% contingency cost that is based on the overall estimate. The plan at a minimum must address environmental impacts, timeline, funding, future site usage, recycling, safety and removal of any hazardous conditions. Solar facilities that are at least 25 MW must follow these requirements, including any co-located energy storage system. |
|
North Carolina |
Statewide/Local Hybrid |
NC General Statutes Chapter 130A, Article 9, Section 309.240 |
Rules established by HB 130 in 2023 apply to new solar facilities with nameplate capacity 2 MW or greater. Decommissioning plans must be filed with the Department of Environmental Quality for approval. Decommissioning requires removal of all project components from the site after operations cease, reusing and recycling where practicable, and properly disposing of hazardous and non-hazardous wastes. Decommissioning must restore the property to its condition before the utility-scale solar project was sited, as nearly as practicable OR an alternative condition agreed upon by the landowner and the project owner. Local governments and landowners may require more stringent terms in contracts. |
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North Dakota |
Statewide |
In North Dakota, as a condition of approval for a Certificate of Operation, the owner of a facility with a capacity of 500 kilowatts (kW) or greater must submit a decommissioning plan and proof of financial assurance to the North Dakota Public Service Commission (PSC) prior to the operation of the facility. The facility owner must file an updated decommissioning cost estimate with the PSC 10 years after the decommissioning cost estimate is initially approved and then every 5 years after until decommissioning is complete. |
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Ohio |
Statewide |
At least 60 days prior to the commencement of construction of a solar or wind facility, the applicant must submit a comprehensive decommissioning plan to the power siting board. The plan must include a schedule for decommissioning that cannot exceed 12 months from the end of commercial operations. |
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Oklahoma |
Statewide/Local Hybrid |
In Oklahoma, a solar energy conversion system owner who executes a Solar Agreement (e.g., easement) to secure a land right for a solar energy conversion system must include within the solar agreement instrument, a description of any decommissioning plans or financial assurance instruments required by the local jurisdiction where the energy facility is located. |
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Oregon |
Statewide/Local Hybrid |
Solar PV power generation facilities using a certain number of acres must provide a decommissioning plan to accomplish the restoration of the site to a useful, nonhazardous condition. The plan must also include bonding or other security as the financial assurance. This applies to facilities using more than 160 acres but not more than 240 acres located on high-value farmland; more than 1,280 acres but not more than 2,560 acres located on land that is predominately cultivated or predominantly composed of soils that are in certain capability classes; or more than 1,920 acres but not more than 3,840 acres located on any other land. |
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Rhode Island |
Statewide |
State law requires plans for decommissioning of the facility at the end of its useful life, which must be submitted via application to the state's Energy Facility Siting Board. The requirements impact major energy facilities (including solar) that have a gross capacity of at least 40 MW. No additional information is given via state law. |
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South Dakota |
Statewide |
As part of an application for a permit to construct an energy facility, the applicant must provide a plan or policy statement on action to be taken at the end of the energy conversion facility's on-line life. Estimates of monetary costs, site condition after decommissioning, and the amount of land irretrievably committed must be included. The commission may require a bond, guarantee, insurance, or other requirement to provide funding for the decommissioning. |
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Tennessee |
Statewide |
Solar power facilities with capacity 10 MW and greater must enter into agreements that provide for the removal of all components of the facility located on a landowner's premises up to a depth of 36 inches. The land must be restored to its condition prior to the beginning of construction as near as reasonably possible. Local governments may regulate solar facilities according to their zoning authority, but may not impose more stringent requirements than the state's. |
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Texas |
Statewide |
Each private (i.e. non-utility-owned) solar installation approved after September 1, 2021 must include a agreement between the landowner and a land lease grantee for the grantee to remove all panels, mounting and racking equipment, wiring, overhead wiring, transformers, substations, and footings from the site. All removals must go to a depth of three feet below surface grade at the project site. Decommissioning agreements must provide, at the request of the landowner, for the removal of any road constructed for the solar project and for the removal of any rock over twelve inches in diameter excavated during the decommissioning and removal process. Property must be returned to a tillable state and/or returned to as near a condition as possible to its state prior to construction of the solar facility including re-seeding native grasses. |
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Vermont |
Statewide |
In Vermont, as a condition of approval for a Certificate of Public Good the owner of a facility with a capacity of greater than 500 kW must submit a decommissioning plan and financial assurance to the Vermont Public Utility Commission (PUC) prior to construction. Facility owners must adjust the financial assurance instrument every 3 years to account for inflation and then file a report with the PUC and the Vermont Department of Public Service describing any adjustments. |
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Virginia |
Statewide |
Code of VA, Title 15.2, Chapter 22, Article 6, Section 2241.2. |
Localities shall require a written agreement to decommission a solar energy facility as part of local approval processes or as a condition of approval of a site plan. Decommissioning applies to solar energy equipment, facilities and devices and requires reasonable restoration of property including soil stabilization and re-vegetation of the ground cover disturbed by the project. |
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Washington |
Statewide Optional |
Solar energy projects may opt in to receive certification from the Energy Facility Site Evaluation Council. This certification is in lieu of any other state or local permits. This certification includes requirements for site restoration and financial assurance of such restoration. |
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West Virginia |
Statewide |
Owners of solar or wind generation facilities must prepare a decommissioning plan unless exempt. Landowners and project owners may reach alternative agreements to the requirements below. Exempt facilities have nameplate capacity under 1 MW, or are operated by a public utility capable of demonstrating acceptable financial integrity and long-term viability to the Commission. Decommissioning plans shall include a commitment to remove all above-ground solar panels and towers and diagrams of all structural and electrical components and all disturbances associated with the facility. Plans must include descriptions of the manner of decommissioning and must include removal of all overhead electrical equipment, transformers, and structures associated with operations of the facility except those associated with interconnecting to the electric grid. All underground components must be removed to a depth of 24 inches, and foundations must be removed to a depth of 36 inches. Sites must be reclaimed to the approximate original surface topography and reseeding or revegetation is required to prevent adverse hydrological effects. |
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Wyoming |
Statewide/Local Hybrid |
In Wyoming, as a condition of approval for an Operating Permit, the owner of a solar energy facility with a capacity of greater than 500 kW must submit a decommissioning plan to the county board of commissioners with jurisdiction prior to construction of the facility. The solar facility owner must submit updated decommissioning plans every 5 years until site reclamation and decommissioning is complete. Wyoming does not require proof of financial assurance for energy facility decommissioning. |
Update: In January 2024, the NC Clean Energy Technology Center released the “50 States of Solar Decommissioning: 2023 Snapshot,” a snapshot publication detailing legislative actions that took place in 2023 related to solar decommissioning and financial assurance. It includes a comprehensive review of all existing statewide solar decommissioning and financial assurance policies.