Its negative impact on the environment lies in the creation of the solar cells which are made primarily of silica (from sand) and the extraction of silicon from silica may require the use of fossil fuels, although newer manufacturing processes have eliminated CO2 production. Solar power carries an upfront cost to the environment via production, but offers clean energy throughout the lifespan of the solar cell.
Land use can be reduced by installing on buildings and other built up areas, though this reduces efficiency.