Municipalities

The role of municipalities in solar power projects

Solar power creates jobs and generates tax revenue for municipalities. With their zoning authority, municipalities play a crucial role in enabling domestic renewable energy production. Since solar power reduces emissions from energy production, it can support a municipality’s climate goals and enhance its progressive and responsible image.

We aim to utilize local contractors at every stage of our projects whenever possible. The demand for accommodation and restaurant services increases, especially during the construction phase, which lasts 1–2 years. The employment impact of solar power also extends to the operation and maintenance of the plants, as typically 1-2 maintenance professionals are needed per plant.

Solar power parks are significant taxpayers for municipalities. The annual property tax revenue from solar power plants for municipalities averages between €1,500 and €3,500 per MWp per year. The amount of tax depends on the size of the plant, construction costs, and the municipality’s property tax rate. The maximum property tax rate for power plants is 3.1%.

During the zoning process for solar power projects, the impacts of the project are thoroughly assessed, and the project developer bears all the costs associated with zoning. Municipalities are responsible for the zoning of their areas, so they ultimately decide what types of projects are built within their jurisdiction.

For more information on the impact of solar power on municipalities, you can visit the Finnish Renewables website, which offers a comprehensive knowledge base on the topic. If you still have questions, please don’t hesitate to contact us!