Financial stability and sustainability are essential to running a successful farm, and Michigan's roughly 50,000 farms — supporting nearly 25% of the state's workforce — are increasingly squeezed by rising utility costs. The average Michigan farmer spends $500 or more a month on electricity, but installing solar can offset up to 100% of that cost. Solar energy can strengthen your farm's financial footing, provide energy independence, and support your operation well beyond just the electric bill.
SAVE UP TO 50% ON SOLAR INSTALLATION
The REAP grant can cover up to 50% of the cost to install solar energy on your farm — saving you thousands upfront and even more through reduced monthly bills.
Talk to the Peninsula Solar team to see if you qualify.
VALUE OF INSTALLING SOLAR ON YOUR FARM
The value solar brings to your farm depends on how much energy you use and what equipment you run — start by checking your latest utility bill to see your kWh rate. An investment is solar can offset a large share of that monthly bill, saving you thousands over time; our team can help you understand your true cost and savings.
Benefits of installing solar:
- Significantly reduce or eliminate your electricity bill
- Long-term savings that improve your farm's financial stability
- Government incentives and grants available for installation
- Protection from rising and fluctuating utility energy prices
- Backup power to keep your farm running during a blackout
- A more self-sufficient, lower-impact operation
HOW TO LEVERAGE SOLAR ON YOUR FARM
As a farmer, you're always looking for ways to conserve energy and cut costs. There are many ways solar can offset your farm's electricity use — in most cases, any device powered by the grid can be offset with solar.
Common farm equipment solar can power:
- Fans (ventilation, barn, etc.)
- Lighting (yard, barn, motion sensing, etc.)
- Fencing
- Heaters (HVAC, water, dairy, etc.)
- Silo unloaders (grain, silage, etc.)
- Grain dryers, elevators, and grinders
- Electric motors and devices
Deoending on your operations, solar may not offset 100% of your energy needs — but there are still smart ways to reduce your monthly cost and protect your operations during a blackout. A few examples of protecting your business during a blackout include irrigation systems, barns, and even electric fencing.
SOLAR-POWERED IRRIGATION SYSTEMS
Adequate water supply is critical to crop growth and health, and you can't always count on the weather your crops need it the most. Solar can take a significant amount of energy to irrigate your farm — but combining solar panels with your pumps lets you cover nearly all of your energy usage for irrigation.
This can help keep your crops and buildings watered during times of serious drought, or when utility companies raise prices at peak hours.
SOLAR-POWERED BARNS, PASTURES, OR BUILDINGS
These areas are likely some of the most used spaces when it comes to electricity — from lights to ventilation, a photovoltaic (PV) system can help save you hundreds or even thousands of dollars a month keeping these buildings up and running.
A solar array for your barn can keep your most important electrical equipment up and running even during a blackout. This can help protect your stored crops, keep your pastures ventilated or heated, and keep animals fed.
It's even more important to consider solar if your building is even farther or smaller structure. It can cost up to $20,000 per mile to have a new electric line installed, and you'll still have to pay a monthly bill to the utility company afterward.
In many cases, farmers will install a setup similar to an off-grid solar system for structures that need less electricity and may not be close enough to warrant a grid tie.
SOLAR-POWERED ELECTRIC FENCING
Many farms rely on some form of fencing, especially ranchers and cattle farmers. An electric fence is a good tool to keep your animals protected from outside threats, such as a coyote.
By mixing solar panels with your electric fencing, you can completely remove the need to tie your fence into the electrical grid. The fence will also power throughout the day and can extend your fence even further without the fear of an increased electric bill, giving your farm more protection.
A solar-driven fence can also function during a blackout, keeping your animals protected and where they should be.
COST TO INSTALL A SOLAR SYSTEM ON A FARM
The cost to install a solar array on your farm depends on your current energy usage. To get a real estimate, look at your latest energy bill and see what your monthly kWh is — that's the baseline for how much a system could offset.
If you're looking to offset a structure or two with solar, it may not cost as much as trying to offset all of your energy usage. However, farms with the largest energy consumption often benefit the most from installing solar.
PAYING FOR SOLAR INSTALLATION WITH THE REAP GRANT
The Rural Energy for America Program, or "REAP Grant," provides guaranteed loan financing and grant funding to help agricultural producers and rural small businesses install renewable energy systems and improve energy efficiency.
If you're an agricultural producer with at least 50% of your gross income from agricultural operations, you may qualify. The Peninsula Solar team can help you understand your options and what's available to you.
A qualified applicant can get up to 50% of total eligible costs covered by this grant — saving you thousands of dollars.
If needed, you can also qualify for a guaranteed loan through the same program to help with your costs, covering up to 75% of the total eligible cost. Learn more about the REAP grant by visiting the U.S. Department of Agriculture website or talking to a Peninsula Solar representative today.
OTHER TAXES & INCENTIVES FOR FARMERS TO INSTALL SOLAR
Commercial farmers and ranchers may also be eligible to save 30% on solar installation through federal tax credits. The Inflation Reduction Act extended this tax credit for installing a new photovoltaic system on your farm, and it can also help cover equipment costs (batteries, inverters, etc.), installation costs, and other inspection fees.
This tax credit can save you thousands of dollars off your installation, making solar an even smarter financial decision to protect your farm.
GET A FREE SOLAR QUOTE FOR YOUR FARM
Peninsula Solar has over a decade of experience designing the best solar systems for our customers. All installations are custom-designed for your personal and professional needs.
Our experts will walk you through everything you need to know about installing solar and will handle everything from calculating your power needs to handling all the permits for the installation.
We've helped several businesses in Northern Michigan achieve energy independence and save tons of money on costly energy bills with state-of-the-art solar systems.
Call the Peninsula Solar team at (231)590-7305 or fill out a quote request form to speak with our team at any time to see how solar energy can help your business and save you money on energy.
