Fayette County County, TN — Solar Development Risk Assessment

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

45.5
Risk Grade
Good
Fayette County scores B reflecting the balance between active solar development in the agricultural west and growing regulatory formalization driven by Memphis exurban pressure in the east. The 2022 ordinance is functional rather than restrictive, and the county has successfully processed multiple large projects, but the trajectory of increasing suburbanization creates modest worsening pressure.
Assessment Snapshot
Population
43,414
State Rank
#21
Compliance
38%
Trajectory
38

Moratorium Status

✓ No Active Moratorium
No Moratorium

Ordinance & Regulations

Setback Requirements
500 ft from any occupied dwelling (participating or non-participating); 300 ft from public roads; 200 ft from non-participating property lines; 8 ft opaque screening or vegetative buffer required along public road frontage.
Zoning Mechanism
Fayette County Planning Commission: CUP required in Agricultural (A-1) and Rural Residential zoning; County Commission must approve; decommissioning bond at $1,500/acre required; public hearing mandatory per SB 2373 (2022).
Acreage Caps
None formally codified; informal guidance suggests 500-acre maximum per project application cycle.
Density Caps
None codified.
Spacing Rules
None codified.
Size Restrictions
None codified.

Board Sentiment & Political Risk

Sentiment Analysis
Mixed-positive — flat West Tennessee farmland with significant solar development; landowner community in agricultural areas largely supportive of lease income; some resistance from Memphis exurban residents in eastern Fayette who have higher incomes and suburban expectations; county commission has maintained a balanced approach
Basis for Assessment
Fayette County presents a split profile: western agricultural areas are highly suitable for utility-scale solar with supportive landowners, while eastern Fayette's Memphis exurban growth brings higher-income residents who object to industrial land use near residential areas; the 2022 ordinance reflects a county managing the tension between agricultural solar development and suburban growth pressure; high median income ($68K) reflects Memphis exurban influence
Political Risk Factors
Stable
Board Members
County Mayor Jeff Shaw | R | Aug 2026 Commissioner Doug Stephenson | R | Nov 2026 (Chair) Verify full commission at fayettecountytn.gov

Grid, Utilities & State Context

Grid Operator
TVA (Tennessee Valley Authority)
Utilities
Memphis Light Gas & Water (MLGW) — eastern portions; Southwest Tennessee Electric Membership Corp — western/rural portions, Tennessee Valley Authority (wholesale)
State Permitting Process
County zoning authority under SB 2373 (2022); no state solar preemption; conditional use permit or special exception typically required; decommissioning bond often required; setback standards increasingly codified
State Incentives
Federal ITC eligible; no Tennessee state solar tax credit; TVA Green Power Switch program available

Development Activity

Active/Completed Projects
Fayette County Solar Farm (approximately 100 MW, Somerville area agricultural land) | Approved 2021 | Operating La Grange Solar Project (approximately 75 MW) | Approved 2023 | Operating Additional projects in development pipeline
Denied/Withdrawn Projects
One project near Piperton area was downsized due to residential proximity concerns.

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