Resources > Solar for farms and rural small businesses

Solar for farms and rural small businesses

• Factsheet

June 15, 2024

Benefits of going solar

Solar offers many benefits for farms and rural businesses. Like all businesses, a farm or rural business will benefit from tax savings thanks to programs like the Solar Investment Tax Credit. But that is only the beginning. 

With so many variables and challenges facing today’s farmers and small business owners, having a fixed cost for electricity is a significant bonus. Going solar helps lock in energy costs by taking control of the source of the power. 

In some cases, the farm or business can turn the solar energy it produces into revenue by selling power back to the local energy provider. Learn more about this option when you speak to local solar companies that install solar systems in your community. Finally, you may benefit from special programs designed to help farms and rural small businesses install clean energy technologies like solar. 

Finding a solar company to help you go solar

Solar power is the energy source of the future. As you consult with local solar companies, you will hear that now is a great time to go solar. The cost of going solar has dropped more than 40% over the last decade. 

There are many solar companies to choose from, making it easier to find an installer to complete the project quickly and cost-effectively. The growth of the solar industry and each additional solar company that joins the industry creates added competition, added quality, and lower prices for consumers, including farms and rural businesses.

Caring for your system is easy 

Solar companies are eager to show potential customers how easy it is to maintain their solar equipment. Unlike other equipment farms and businesses rely on, no one needs to be present to operate the system. And in areas with enough rain to sustain crops, that same rain will clean your solar panels regularly. 

In addition, this proven technology comes with excellent warranties and customer support from the solar company that installed the system and the solar company that manufactures the components.

Understanding potential grants and loans for your solar project

The USDA’s Rural Energy for America Program (REAP) offers grants and loans to make solar more affordable for farms and rural small businesses. If your farm or business meets REAP eligibility criteria, applying for a grant can significantly reduce the cost of taking your business solar. 

Grant funding can also be combined with the Federal Tax Credit and accelerated depreciation (MACRS). Both are available to businesses installing solar energy equipment. 

Paying for solar

There are two ways you can pay for solar, depending on where you live:

1. Direct ownership

Direct ownership means the farm or business owner will purchase the system for your property. You will own all of its electrical output. Direct ownership of a system makes sense for your farm if you can do one of the following:

• raise funds for the cost of the project
• pay cash upfront 
• get access to specific state incentives and grants

2. Third-party ownership

If available in your state, under third-party ownership a separate entity owns and operates the solar system. These entities could be solar developers or a group of community investors. You would pay the third party for the monthly electricity produced by the solar system. 

The third-party will benefit from the federal tax credit and any additional incentives. They then pass the savings on to you in the form of more affordable power. Third-party ownership is only available in certain states. See the list here.

Solar companies help support your commitment to the planet

As a business dependent on the planet and its health to survive, you may be interested in working with other companies who also support protecting the environment. Converting your farm or rural business to solar power is the next step in protecting your business and the future of our planet. If you own a family farm, think of your investment in solar as a gift to future generations.

Whether you work with one or multiple solar companies to create the perfect solar plan for your business, you will help promote an ongoing environmentally friendly power resource for your business. 

Going solar also ensures that your impact on the planet is as safe and green as possible. Not only are you demonstrating your commitment to protecting the environment as a pillar of the community, but you are also working to better protect the planet that is supporting your business.

How we can help you go solar

We are a nonprofit, not a solar installer or sales company. Our experts are unbiased and independent. Our Solar Help Desk can help you review installer proposals. We’re here to answer questions including:

• How much will my solar system cost?
• Should I install a rooftop or ground-mounted system?
• How can I finance my solar project?
• How do I choose an installer?
• What permits and approvals will I need?

If you decide that you would like more support, we offer consulting services. We’ll advise and advocate for you throughout the entire process. We can provide expert, vendor-neutral information to help you understand your options and compare proposals from solar installers. We also help identify and apply for grant opportunities and guaranteed loan-financing programs available for agricultural producers.

Our team is ready to help you qualify for financing assistance for your solar energy projects.