As farmers and the agricultural industry continue to face economic challenges, there has been an increased focus on finding permanent solutions to operational energy costs. The U.S. Energy Information Administration forecasts that the United States will generate 3% more energy in 2024 than it did in 2023. This is primarily due to the increased use of air conditioning and ventilation both commercially and residentially as the summer heat comes on earlier in the year. To make matters worse, the price of electricity has been trending upward year over year, putting increased strain on financials for farmers. At Sun Farmer’s Group, we are focused on saving farmers money by empowering them with total energy independence through solar power. In this article, we will discuss the economic impacts of solar energy for farmers and how you can potentially save hundreds of thousands of dollars by making the switch!
7 Ways Solar Energy Can Make a Positive Economic Impact for Farmers
We can understand a certain amount of skepticism toward solar energy. To be fair, it’s been unattainable for many farmers because of the high startup costs. While the environmental benefits have been clear since the beginning, the financials have not been so black and white. Over the past decade, all of that has been changing for the better. There are plenty of economic upsides to solar energy for farmers that make switching a good financial decision for you. We’ve put together seven ways solar energy can make a positive economic impact for your farm.
- Reduce operations costs. One of the most obvious and immediate economic impacts of installing solar energy on your farm is a swift reduction in energy costs. In most cases, it’s a total elimination of traditional energy costs. Farms require an enormous amount of fossil fuel electricity due to heating and ventilation, refrigeration, machinery, and more. Even worse, the price of electricity can fluctuate greatly month to month, making it difficult to forecast financials. Once your farm is outfitted with solar energy, your growing energy bill is replaced with a more manageable loan payment that is eventually eliminated altogether. This means farmers can allocate more money to improvements or enjoy the extra hard-earned profit.
- Increase the value of your farm. A farm that is outfitted with solar energy can increase the overall value of the land and the operation itself. As time goes on, more buyers and investors look for renewable and sustainable integrated systems before making a purchase or acquisition. This can make your real estate more attractive on the market or increase the equity in your farm.
- Net metering can open an additional revenue stream. Depending on where you live, you can sell your unused solar energy back to the power companies. This is made possible through a process called net metering. In most sunny months, your solar system will have unused energy that it generates. Once set up, utility companies track your unused energy and either provide you with monetary compensation or credits toward your traditional energy bill. This can provide supplemental income for your farm for no extra work!
- Complete energy independence. Agricultural solar energy completely replaces the need for traditional grid electricity. Farmers who invest in solar energy on their farms insulate themselves from the volatile nature of energy prices. This also means that farmers are able to rely less on things that are harder to predict in their business, giving them a significant business advantage and putting them back in control of their finances.
- State and federal incentives. Local state governments and the federal government are pushing to get more sustainability programs online across the country. This means that there are plenty of opportunities for farmers to cash in and greatly reduce the upfront cost of a solar energy project. The most advantageous of these is the Rural Energy for America Program or “REAP” grant. This is a federal grant that can cover up to $1 million in sustainable project costs. For some farmers, this means that up to 80% of out-of-pocket project costs are completely covered. Grants and other tax credit monetization accelerate farmers’ return on investment timeline significantly and remove a historically difficult barrier to entry.
- Stimulate the local economy. While there are plenty of positive economic impacts for the farmers who install solar, there are also other ways that solar projects contribute to the local economy. When a farmer chooses to install solar energy, he or she is positively impacting the local economy and helping to create jobs from manufacturing to installation and maintenance. This can also have a ripple effect with other local businesses as more solar projects in an area means more local businesses have potential patrons and customers who may not have otherwise been around.
- Premium product offerings through sustainability. Today’s shoppers have sustainability on their minds when they go to the grocery store. Some studies show that as many as 40% of consumers admit that they are willing to pay a premium for a product if it’s sustainably sourced. This means that farmers who adopt solar technology have an opportunity to go to market with enhanced sustainability messaging on their packaging and charge more for their products. The ability to charge more for the same product can positively affect your bottom line while knowing you’re making a difference for the environment and the impact your consumers are making on the planet.
Final Thoughts on the Economic Impacts of Solar Energy
It’s clear to see that solar energy’s positives as far as economics are concerned far exceed the basics of saving money on energy. Whether it’s shielding yourself from economic instability or opening a new revenue stream for your business, solar energy is no longer solely an environmental decision; it’s a potential financial windfall for farmers who are willing to invest in the long-term success and stability of their farms. And with new programs and incentives coming out every year, the once-hard decision is becoming an increasingly easy one.
How Sun Farmer’s Group Can Help
Sun Farmer’s Group is the first true turnkey solution for agricultural solar energy. Our proprietary program has brought all of the in-house expertise to the table in grant writing, financing, tax credit monetization, installation, and so much more. Unlike other companies, Sun Farmer’s Group empowers farmers with a no-money down solution that greatly reduces and eventually eliminates your power bill altogether. The future is as bright as the sun, and we’ll help you turn it into power!
Get in Touch
If you’re ready to learn more about how Sun Farmer’s Group can help you put more money in your pocket, call 877-417-3222 today!
