Solar For Farmers: Everything Farmers Need To Know

Running a farm isn’t cheap. Equipment, feed, water, fuel—it all adds up, and one of the biggest recurring expenses is definitely electricity. From irrigation systems to refrigeration, barns to processing facilities, farms depend on power, and every month, that power comes at a price.  

Electricity rates fluctuate, which means they often rise when you least expect it. A few cents per kilowatt-hour might not sound like much, but across acres of land and months of operation, it’s easy for those costs to spiral out of control. 

Solar changes that. Instead of relying on the grid, you generate your own electricity, thereby cutting energy costs and stabilizing expenses. Instead of unpredictable utility bills, you get long-term savings and energy independence. With the right system, you can power irrigation pumps, barns, cooling units, and processing equipment, all with energy from the sun.

Solair is a solar installation company that installs solar systems on farms throughout Delaware, Maryland, Pennsylvania, and New Jersey. Our team can help you reduce your farm expenses with solar. 

Why Farmers Are Switching to Solar  

Farming comes with enough uncertainty. Weather, market prices, and fuel costs are all beyond your control, but your energy source is one area where you can take charge and make a difference in your operations.

With solar, electricity costs cease to be a moving target. There is no more worrying about peak rates, seasonal spikes, or unpredictable increases. Once panels are installed, they start generating power immediately. Every kilowatt-hour you produce is one less you have to buy from the utility company.  

The benefits don’t stop at lower bills. Farmers who invest in solar increase the value of their land, qualify for tax incentives and build a more sustainable operation. In an industry where efficiency matters, cutting energy costs without sacrificing productivity gives you a competitive edge.  

How Solar Works for Farms  

Solar panels take sunlight and turn it into electricity, providing a direct, renewable power source for your farm. The process starts when solar panels absorb sunlight and convert it into direct current (DC) electricity. That power then runs through an inverter, which transforms it into alternating current (AC), the type of electricity that powers irrigation systems, barns, processing equipment, and everything else your farm depends on.  

If your solar system produces more electricity than you need, that excess energy doesn’t go to waste. It can either be stored in batteries for later use or sent back to the grid, earning you credits through net metering. This means that even when the sun isn’t shining (such as at night or on cloudy days), you can still draw power without relying entirely on the utility company.  

Unlike residential solar, which often involves rooftop installations, farms enjoy more flexibility in system design. Ground-mounted solar panels are a popular choice: these systems can be installed at an optimal tilt and orientation to capture the most sunlight, which maximizes efficiency. Some farmers take it a step further by integrating solar into grazing areas, creating a dual-purpose system: the panels provide shade for livestock, reducing heat stress while generating electricity. 

Solar isn’t just for large-scale power needs. Many farmers use it for specific applications, such as:  

• Solar-powered water pumps

• Cold storage and refrigeration  

• Electric fences

• Ventilation and cooling

• Automated feeding systems

With the right setup, solar can handle nearly every energy demand on your farm. Whether you need to power a single irrigation pump or an entire operation, there’s a system that fits. And because solar panels have a lifespan of 25 to 30 years, you’re investing in decades of energy savings. 

Financial Incentives for Farmers  

The cost of solar has dropped significantly over the past decade, making it a more practical investment for farms of all sizes. But lower equipment prices aren’t the only reason solar makes financial sense. Federal and state incentives also help reduce upfront costs, speed up payback periods, and increase long-term savings. With the right ones, many farmers break even years sooner than expected and turn their solar system into a profit-generating asset rather than just an expense. 

Investment Tax Credit

One of the most valuable incentives is the Investment Tax Credit (ITC). This federal program allows you to deduct a percentage of your total solar installation costs from your federal taxes, instantly lowering the amount you owe. The ITC has been a major driver in solar adoption, making it easier for farmers to afford large-scale energy solutions.  

Rural Energy for America Program

Beyond tax credits, grants and rebates offer additional financial support. The Rural Energy for America Program (REAP) is specifically intended for agricultural businesses looking to invest in renewable energy. It provides grants covering up to 50% of project costs and low-interest loans to help cover the rest. With REAP funding, solar becomes even more affordable, allowing farmers to install high-efficiency systems without draining their cash reserves.

Modified Accelerated Cost Recovery System

Depreciation benefits also make a big impact. With Modified Accelerated Cost Recovery System (MACRS) depreciation, farmers can write off the cost of a solar installation over a shorter period, reducing taxable income and improving cash flow. Instead of spreading the deduction over decades, MACRS allows you to recoup much of your investment within just a few years.  

Other Incentives

Some states offer additional benefits, including performance-based credits that pay you for every kilowatt-hour of solar energy your system produces. Net metering policies allow farmers to earn credits for sending excess power to the grid, further increasing savings. Instead of letting surplus electricity go to waste, your farm can turn it into bill reductions or even cash payments from the utility company.  

Every dollar saved through tax credits, grants, and rebates is a dollar that can be reinvested into your farm. Whether it’s upgrading equipment or simply reducing overhead, solar incentives give you more financial flexibility while locking in long-term energy savings.

Will Solar Work on Your Farm?  

Every farm is different. Location, energy use, and available land: all these factors determine what type of solar setup works best. The good news is that most agricultural operations have the space and sunlight needed for a high-performing system.  

The first step is an energy assessment. Looking at past electricity bills gives you an idea of how much power your farm consumes. From there, a solar consultant evaluates available land or roof space, shading, and structural considerations. Some farms benefit from battery storage, while others can rely on grid connections with net metering.  

Durability is another key factor. Solar panels are designed to withstand harsh weather, from intense sun to heavy snow. For farmers dealing with dust, dirt, and equipment movement, properly mounted panels with easy maintenance access keep the system running efficiently for decades.  

Off-Grid vs. Grid-Tied Systems  

Farms in remote areas sometimes struggle with reliable grid access. Power outages can disrupt irrigation, refrigeration, and automated systems. For these operations, off-grid solar with battery storage provides an independent energy source, so that critical equipment keeps running no matter what happens with utility service. 

For farms connected to the grid, solar works alongside existing infrastructure. Grid-tied systems allow you to draw power from the solar array during the day and use grid electricity when needed. If you generate more power than you use, net metering lets you send it back to the utility company in exchange for credits.

Hybrid systems combine solar, battery storage, and grid power, giving farmers flexibility. When solar production is high, the system stores excess energy. When demand is greater than what the panels generate, stored power or grid electricity fills the gap.  

The Payback Period: When Will Solar Start Saving You Money?  

You may be wondering how long it takes for solar to pay for itself. The answer depends on system size, incentives, and energy usage. On average, most farms see a payback period of five to ten years. After that, the system generates free electricity for decades.  

With the Investment Tax Credit (ITC) and REAP grants, upfront costs drop considerably. Add in depreciation benefits and energy savings, and many farmers recoup their investment much sooner than expected. Unlike fuel or fertilizer costs, which fluctuate based on the market, solar provides a fixed, predictable return year after year.  

Solar as an Investment in the Future  

Farming is about long-term sustainability. From healthy soil and water conservation to efficient operations, everything you do is an investment in future harvests. Energy should be no different. With solar, you’re not just cutting costs today. You’re securing affordable power for the next 25 to 30 years.  

Beyond financial savings, solar meets the growing demand for sustainable agriculture. Consumers care about where their food comes from, and businesses increasingly favor suppliers with environmentally responsible practices. Investing in solar can actually position your farm for long-term success in a changing industry. 

As energy costs rise and profit margins tighten, having control over your electricity expenses becomes more valuable than ever. The sun isn’t sending a bill every month. Utility companies are. Which one do you want to rely on?

Request Your Free Solar Installation Quote

Rising electricity bills don’t have to cut into your farm’s profits. With solar, you can reduce expenses, increase energy independence, and invest in a more sustainable future, all while taking advantage of valuable tax credits and incentives.  

At Solair Green Energy Advisors, we help farmers like you find the right solar solutions to maximize savings and energy efficiency. From system design to financing options, we handle the details so you get the best resolution for your needs. Ready to see how much you could save? Contact us today for a free quote and start harnessing the power of the sun for your farm.