Adapting California Agriculture: Water Shortages, Solar, and Food Production
California’s agricultural landscape is transforming due to water supply challenges and the push for renewable energy. With projections of 500,000 to 1 million acres fallowed in the San Joaquin Valley by 2040, driven by the Sustainable Groundwater Management Act (SGMA) and decades of environmental water policies curtailing water supplies, farmers face tough choices: grow crops, convert land to solar, or try to do both.
Solar Redeveloping Fallowed Land
California’s agricultural landscape is transforming due to water supply challenges and the push for renewable energy.
With projections of 500,000 to 1 million acres fallowed in the San Joaquin Valley by 2040, driven by the Sustainable Groundwater Management Act (SGMA) and decades of environmental water policies curtailing water supplies, farmers face tough choices: grow crops, convert land to solar, or try to do both.
Part of Project Nexus – Turlock Irrigation District
Irrigation Districts Seeking to Scale Solar and Realize Multiple Benefits
Innovative local solutions are emerging. Turlock Irrigation District’s Project Nexus, launched in October 2024, places solar canopies over canals, producing 5 MW of energy and saving approximately 48 acre-feet of water per mile by reducing evaporation, according to the University of California, Merced. Similarly, the San Luis & Delta-Mendota Water Authority’s Delta-Mendota Canal Floating Solar Project, backed by a $15 million federal grant, is testing floating solar panels to generate energy, curb evaporation, and improve water quality.
Westlands Water District runs a program, supported by Assembly Bill 2661 and the Valley Clean Infrastructure Plan, which allows farmers to fallow land for solar projects while retaining water allocations. The Westlands Solar Park, started in 2011, has converted 20,000 acres of drainage-impaired land into a 672 MW solar facility, with plans to expand to 1,800 MW, balancing water use and renewable energy goals.
Economic, Supply Chain, and Policy Issues Challenge Projects of Every Size
Solar projects face challenges from many fronts. Forecast revenue from energy sales, used to offset the high up-front costs required, are under pressure, with diminishing net metering rates that make smaller projects less viable. Large-scale projects like Westlands Solar Park rely on commercial power purchase agreements, but their development is slowed by limited transmission capacity.
While residential battery storage often receives public attention, more than 85% of total energy storage capacity in California occurs at the Utility scale. A critical part of solar energy in California, utility and project-scale battery storage has been delayed. Shifting regulatory landscapes and supply chain interruptions are causing long, often multi-year wait times for other critical manufactured components, such as transformers and electrical safety breakers needed for solar projects.
Not all farmland is eligible to be converted to solar projects. In exchange for a commitment to protect farmland from development, farmers have tools, such as the Williamson Act, that provide tax breaks for continuing agricultural operations on their property. Another tool that can limit alternate land uses is an agricultural conservation easement. An agricultural conservation easement is a voluntary legal agreement between a landowner and a qualified organization (like a land trust or government entity) that permanently restricts the land’s use to protect its agricultural and environmental values. Landowners receive financial payments for the development value of the land, with a legally binding easement placed on the property deed in perpetuity.
A Balanced Future
California’s farmers and water agencies are innovating to help counter the effects of long-term water supply instability by investing in California’s renewable energy goals and food production. Projects like Project Nexus, SLDMWA’s floating array, and Westlands Solar Park show how strategic solar development can support rural communities while meeting SGMA requirements. With thoughtful policies and infrastructure investment, California can support farmers and maintain our role as a leading food supplier while advancing clean energy.
