Merced County, CA — Solar Development Risk Assessment

Local solar ordinance barriers, board sentiment, and utility policies that affect development timelines and risk.

43.1
Risk Grade
Good
Active San Joaquin Valley solar development county with flat agricultural land and growing pipeline; former Castle Air Force Base provides additional siting opportunities on non-agricultural land; PG&E transmission accessible; UC Merced campus driving population growth and some land competition; Williamson Act land removal proceeding on lower-quality soils; dairy industry proximity rules add some complexity; solid B-grade development environment
Assessment Snapshot
Population
286461
State Rank
#11
Compliance
37%
Trajectory
35

Moratorium Status

✓ No Active Moratorium
No specific moratorium information available.

Ordinance & Regulations

Setback Requirements
200 ft from occupied residences; 100 ft from property lines; 300 ft from dairy operations
Zoning Mechanism
Conditional Use Permit (CUP) per Solar Energy Facility Ordinance; CEQA review; Williamson Act land requires NOC or cancellation; agricultural compatibility finding required
Acreage Caps
None — no county acreage cap
Spacing Rules
None specified
Size Restrictions
Projects >1 MW require CUP; Williamson Act land requires 9-year NOC; dairy proximity restrictions apply

Board Sentiment & Political Risk

Sentiment Analysis
Generally supportive — Central Valley agricultural community; board of supervisors supportive on marginal ag land; Castle AFB reuse area welcomes solar development
Basis for Assessment
County supervisor votes; planning commission hearings; CEQA filings; Merced County Farm Bureau input; LAFCO records on Castle AFB area
Political Risk Factors
Stable
Board Members
Lloyd Pareira | R | 2026; Hubert Walsh | R | 2028; Rodrigo Espinoza | D | 2026; Scott Silveira | R | 2028; Jerry O'Banion | R | 2026

Grid, Utilities & State Context

Grid Operator
CAISO — PG&E Balancing Authority
Utilities
Pacific Gas & Electric (PG&E)
State Permitting Process
County zoning + CEQA review required; CEC siting jurisdiction for projects >50 MW on state/federal land; Coastal Commission review for coastal zone; DRECP DFAs streamline desert county permitting
State Incentives
Federal ITC eligible; California Self-Generation Incentive Program (SGIP) for storage; CA Renewables Portfolio Standard procurement; CPUC approved procurement programs

Development Activity

Active/Completed Projects
Los Banos Solar (~40 MW, 2021); Stevinson Solar (~25 MW, 2022); Castle Commerce Center solar (~15 MW, former Castle AFB, 2020); multiple additional San Joaquin Valley floor projects
Denied/Withdrawn Projects
None confirmed

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