Texas land use past and present: how solar fits in

Texas, often associated with sprawling deserts and vast ranchlands, has deep roots in agriculture and resource extraction. The entrepreneurial spirit of Texas has been evident from the early days of Spanish colonization, when the cotton and timber industries pioneered the first phase of growth in Texas. It is hard to imagine today, but in the mid-19th century, beef was not yet popular in the United States, and we can thank the Texan entrepreneurs of that time for building the cattle industry.

The Spindletop oil field near Beaumont represents the next phase of Texas’ success story: oil and gas, starting with a lucky strike in 1901. During the first half of the 20th century, oil became the primary driver of the Texas economy, and it enabled Houston and surrounding areas to create some of the largest petrochemical complexes on earth, which allowed the industrialization of Texas. The Second World War was the first opportunity for Texas to significantly diversify its industries, and since then Texas has not looked back and is today a hub for technology, aerospace, defense, healthcare and manufacturing, in addition to its natural resource-based industries and agriculture.

Wind energy (starting in the 2010s) and solar energy (starting a few years later) are only the latest chapter in the entrepreneurial success of Texas and the hard work that has gone into creating the 9th economy in the world, with a population that has surpassed 30 million in 2022 and has consistently grown much faster than the rest of the US.

The cheap price of electricity has supported industries that are flourishing in Texas, such as semiconductor plants. Cheap and renewable electricity is essential for many sectors, and solar and wind projects on Texas’ extensive landscapes play a key role in keeping prices low. Contact us today if you have available land or if you want to learn more – perhaps your property can contribute to our country’s energy security with a new solar project, while earning you high lease income.

Land use in Texas and growing demand

As Texas has grown, so has demand for land. Most growth has been concentrated in or near the big cities of Austin, Dallas, Houston and San Antonio, and is driven by migration. On the other hand, some rural counties in West Texas have lost population. The big cities have sprawled outwards, and many suburbs continue to be built on ranchlands.

Between 84% and 95% of land in Texas is privately owned (depending on how this is measured). Texas has 142 million acres of private properties, which belong to approximately 250,000 different owners. 85% of these land holdings are “small” or less than 500 acres, and these make up 16% of the 142 million acres of properties. This means that the majority of land ownership is concentrated in the hands of some large landowners.

According to the Texas Landowner Survey, 38% of Texas property owners worked exclusively on their farming operations, while the rest are owned by people who also have other sources of income and do not rely solely on their land.

Many landowners have come under pressure in recent years, due to all the challenges of running a farming operation. This has led to an alarming trend: over the last 20 years, almost 2.2 million acres of working land has been lost in Texas, most often since it has fallen into disuse, although some of these areas have also become urbanized as Texan cities have grown. Landowners who live off farming are competing in a world market in which weather, commodity prices and high labor costs can combine to make farming uneconomical.

Our mission at Telkes is to give landowners the opportunity to secure income from solar leases on their terms, and we believe that solar projects need not compete with farming, but can be a partner to farmers who want to diversify their sources of income. If you are a landowner and would like free advice on how solar energy could potentially work for you, contact us today to learn more.

Tell us about your land, so that energy developers can propose a solar project on your plot. Make money from your land and make the world more sustainable.

List your land for free on Telkes.