By 2040, New York State aims to achieve 100% zero-emission electricity generation. To realize this ambitious goal, utility-scale solar development is a key tool. The state has implemented tax exemptions and centralized siting authority to accelerate renewable energy growth, arguing these measures are necessary to attract development. However, this study questions whether local jurisdictions receive fair compensation for hosting these facilities.

This thesis conducts a fiscal analysis of utility-scale solar development and PILOT agreements in Tompkins County, using Yellow Barn Solar as a case study. Through scenario comparisons and stakeholder interviews, this paper evaluates how PILOT agreements impact local tax revenues compared to full property taxation. The analysis employs three scenarios: negotiated PILOT payments, full property taxation using the state’s appraisal model, and standardized PILOT rates based on project revenue.

Results reveal that while solar development increases fiscal revenues compared to current land use, the negotiated PILOT agreement generates approximately $2,455,367 less revenue than full property taxation would yield over the project’s 20-year lifespan. Interviews highlight challenges in the negotiation process, including varying levels of IDA involvement, lack of transparency, disputes over the state’s assessment methodology, and tensions between jurisdictions regarding benefit distribution.

This research provides empirical evidence to help local governments navigate the complex tradeoffs between advancing renewable energy goals and maintaining fiscal sustainability. Findings suggest that current PILOT structures warrant reconsideration to ensure host communities receive equitable compensation for their contribution to state climate objectives.