LANCASTER, Ky.—It is unusual to have a utility-scale solar array in Kentucky, and even more unusual that the grounds crew here is a live-in flock of more than a thousand sheep.

On a recent afternoon, the sheep lounged beneath the shade created by solar panels, supervised by three dogs: Honey, Junior and Roxy.

The property is a farm and a power plant, and the developer, Silicon Ranch, is using this site to test how to maximize the income from both businesses. The work is part of an effort by solar companies and farmers searching for ways to efficiently utilize the hundreds of millions of acres in the United States used for livestock grazing.

Nick de Vries, Silicon Ranch’s chief technology officer, walked along a row of panels, explaining that his company and others have largely figured o

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