
SOLAR SAVINGS TOOLKIT
Photo courtesy of 3 Porch Farm in Comer, GA
Why Solar?
Solar energy is a climate-smart farming solution that reduces greenhouse gas emissions, lowers energy costs, and increases energy security. As extreme weather events become more frequent, being powered by solar helps farmers build resilience against rising energy prices and power disruptions.
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Reduced Energy Costs: Solar panels can significantly reduce energy bills by providing a renewable and cost-effective alternative to traditional electricity sources.
Energy Independence: Powering your farm with solar can provide farmers with greater control over their energy needs, reducing reliance on the grid and potentially minimizing disruptions from power outages.
Environmental Sustainability: Solar energy is a clean and renewable energy source, contributing to a reduced carbon footprint and a more sustainable agricultural operation.
Extended Growing Seasons: Solar-powered heating and lighting systems can extend the growing season, allowing farmers to produce crops year-round or in regions with shorter growing seasons.
Powering Various Farm Equipment: Solar energy can power a wide range of farm equipment, including freezers, walk-in coolers, irrigation systems, lighting, and heating/cooling systems.
Cost-Effective Solutions: While there is an initial investment in building solar infrastructure, solar systems can provide long-term cost savings and reduce operational expenses.
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How Solar Power Works
Solar panels convert sunlight into electricity, which can be used immediately, stored in batteries, or sent to the grid. A complete system includes:
Solar Panels: Capture sunlight and generate direct current (DC) electricity.
Inverters: Convert DC into alternating current (AC) for farm use.
Batteries (Optional): Store energy for off-grid use or backup power.
Charge Controllers: Manage energy flow and prevent overcharging.
Mounting Systems: Secure solar panels to a roof or the ground.
Installation Options
Selecting the right installation type depends on factors like available space, budget, and energy needs.
Ground-Mounted: Installed on open land, these systems offer flexibility in orientation for maximum sunlight exposure. They are easier to clean and maintain but require dedicated space, which may impact land use for farming activities.
Roof-Mounted: Mounted on barn, greenhouse, or building rooftops, these systems make efficient use of existing structures without taking up valuable farmland. They are typically more affordable to install but may have limitations due to roof size, angle, and structural integrity.
System Types
Choosing the right system type depends on your farm’s energy requirements and access to grid power.
Grid-Tied: Connected to the utility grid, allowing you to draw power when solar production is low and sell excess energy back to the grid through net metering. These systems tend to have lower upfront costs since they do not require battery storage.
Off-Grid: Completely independent from the utility grid, these systems rely on battery storage to provide power during low sunlight periods. They are ideal for remote farms without grid access but require a larger upfront investment due to the need for batteries and backup power sources.
Assessing Solar Potential
Before investing in solar, consider:
A reputable solar service provider can help you assess these factors and determine the best solar solution for your farm.
Location & Sunlight: Does your farm receive consistent sunlight?
Energy Usage: What are your peak consumption times and biggest energy needs?
Available Space: Do you have enough land or roof space for installation?
System Costs & Incentives: What are the costs, and what financial assistance is available?
Impact on Operations: Will solar affect farm activities, grazing, or soil conditions?
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System Costs
Equipment: Solar panels, inverters, batteries (if needed), mounting hardware.
Installation: Labor, permitting, wiring, scaffolding (for roof installs).
Maintenance: Cleaning, periodic inspections, inverter replacements (every 15-20 years).
Average Installation Costs
Solar costs vary, but the national average is around $2.56 per watt before incentives. The final price depends on system size, roof structure, and local rebates.
Funding Opportunities and Incentives
Federal Solar Tax Credit: Covers 30% of the total solar installation cost, including panels, inverters, labor, and permitting fees. This credit can be applied to both residential and commercial solar projects, including farms. It reduces the amount of federal income tax owed, helping farmers lower their upfront investment costs. The credit is currently available through 2032 before gradually decreasing.
*USDA REAP Grants: Provides grants covering up to 50% of eligible project costs for renewable energy and energy efficiency improvements. The program also offers loan guarantees that can cover up to 75% of costs. Farmers in rural areas with qualifying projects—such as solar installations, wind turbines, or energy-efficient irrigation—can apply. Grant amounts range from $2,500 to $1,000,000 for renewable energy systems.
The Modified Accelerated Cost Recovery System (MACRS)allows businesses to recover investments in certain tangible property, such as solar equipment, over a five-year cost recovery period through annual tax deductions. This significantly reduces the tax burden and accelerates the return on investment for solar projects.
*Some service providers will apply for REAP on your behalf, with the application cost included in their system and installation price.
Calculating Savings & Payback
Factors affecting return on investment (ROI) include:
System Cost: Varies based on size, equipment, and installation fees.
Electricity Rates: Higher local energy costs mean faster savings.
Incentives & Rebates: Programs like the federal solar tax credit reduce costs.
Example Calculation:
System Cost: $18,000
Tax Credit (30%): -$5,400
Net Cost: $12,600
Annual Savings: $1,800
Payback Period: 7 years
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Coming Soon!
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Real farm experiences with solar, including:
Installation costs and funding sources
Out-of-pocket expenses vs. grants
Cost savings and revenue increases
Lessons learned
Coming Soon!
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Coming Soon!
Photo courtesy of Vesterfield Farm in Cochran, GA
More and more farmers are investing in solar to power their farms. Read on and use our Solar Savings Calculator to see if it’s a smart fit for your operation.
This Solar Savings Toolkit was made possible by funding from the Climate Solutions & Equity Grant from Drawdown GA.