Solar energy raises hopes for Georgia farmer’s future
- Stories
Farming can be as tough as it is rewarding. Just ask Scott McRae who owns and operates JS McRae Farms in Alma, Georgia. Scott has been working on the farm since the late ’90s and in that time has seen the cost of everything he needs to run his business go up. In March 2024 he went solar to keep his energy bills down and ensure the family-run affair sticks around well into the future.
The farm started out as a poultry operation. Scott’s mother and stepfather put up the first chicken house in 1996 and added three more over subsequent years. Poultry is still the focus today, accounting for around 65 percent of the farm’s revenue, but over time they’ve had to adapt to keep the business thriving.
“We have to have several different revenues to make it work,” says Scott. When a single stream of income proved too limiting, he began to grow hay which segued into a cow-calf operation—a form of cattle production. The cattle serve as a form of savings account where he can invest. By managing the herd and selling the calves, Scott says the profit comes in just in time to cover the property taxes.
In 2017 Scott looked into solar as a potential addition to his farm’s shrewd financial puzzle. “We use a great deal of electricity,” he says. In the summer Scott’s energy bills range between $7,000 and $8,000. The upside of producing his own energy and reducing this fixed cost was appealing, but the available incentives weren’t enough to make the upfront costs realistic, so he tabled the idea.
In 2022 the federal government—through the Inflation Reduction Act—increased the commercial investment tax credit (ITC) for solar to 30 percent. The legislation also considerably expanded the Rural Energy for America Program (REAP), which provides federal grants for renewable energy projects to rural agribusinesses. Through REAP, farmers like Scott can now cover up to 50 percent of a solar project’s cost with grant funding.
These incentives reopened the door. “The USDA was giving a grant for us to do it and the tax credit … we were projecting to save roughly $40,000 a year,” he said. “I’m in the poultry business and anything we can do to hedge against any kind of fixed cost would be beneficial.”
Buoyed by the projected savings, and with no shortage of roof real estate, Scott enlisted One World Solar to design and mount two arrays totaling 200 kilowatts (kW) on the roofs of his chicken houses.
The cost of the project totaled $805,000. Through REAP, Scott received approximately $403,000 in grant assistance. To offset the remaining cost, the farm will be able to make use of the 30 percent ITC, plus an additional 10 percent tax credit through the Low-Income Communities Bonus Credit Program. “That’s really the only way we could ever even entertain the idea.” Supported by these incentives, Scott expects to pay back the initial investment in around 3 years.
The farm’s system went live in March 2024 and in the first few months of operation is performing as anticipated. In July, they had $400 in bill credits from the power they generated but did not use themselves. The impact of the energy savings will be felt across the farm’s budget, which has only become more strained over the years.
Revenue in the poultry industry has not gone up much since Scott first started working on the farm in 1997. The same cannot be said for the business’s other expenses. “I used to pay $100 for a one-horsepower fan motor. Now I’m paying $200 for that fan motor.” Scott plans to redistribute the funds back into his business to reduce strain and take care of his five full-time employees—“they’re not going to work for the same wages forever.”
Solar savings will also provide security for the farm. The poultry industry is subject to periodic shutdowns by regulators seeking to stop the spread of pathogens, like bird flu. While this is done with health and safety in mind, it creates financial challenges that farmers like Scott must navigate. The savings cushion the blow from unexpected losses in revenue as well as unforeseen repairs. “[If] our tractor tears up we’re not as worried about how we’re going to get that money to fix it … we’re always going to have some kind of maintenance cost.”
Investing in solar also allows the farm to insulate themselves from the rising cost of power. An important protection for a business with such high energy demand. The farm is a member of The Satilla Rural Electric Membership Corporation (REMC) — an electrical utility model popular in rural areas. Electrical cooperatives like Satilla differ from investor-owned utilities (IOUs) in that they are not-for-profit and member-owned.
Satilla does not produce electricity; they buy it from the state’s largest IOU, Georgia Power, and distribute it to rural customers like Scott. Presently, the REMC charges less per kilowatt-hour (kWh) than Georgia Power, but if they were to adjust their rates to match, that would represent a 30 to 40 percent increase in the cost of energy, Scott shared. While still cheaper, Satilla began charging more a couple of years ago, “[It] was like a 19 percent increase in the utility rates.” By producing his own energy, Scott has mitigated the impact future rate increases will have on his business.
Enabled by the federal incentives that put solar within reach, Scott has created an additional revenue stream, slashed his fixed costs, and hedged against the rising cost of power. His efforts to ensure the farm is successful today and for years to come are about much more than just shoring up the bottom line. Someday, Scott hopes to turn the farm over to his kids and their families. By investing in the success of the farm, he is investing in them.
“Deep down in my heart and soul, I would love to be here [until] I pass away and just give aid and assistance to my family, and let them try to run it and manage it. Try to make a good life … like I have for my family.”
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