There is a big push on solar throughout the world. The United States is one of the leading countries in solar energy. Solar prices have dropped at a significant rate (nearly 70% as of 2020), making it accessible for the average person and small businesses to take advantage of the solar benefits. There have been Federal financial incentives to transition to solar over the last decade. So, the bigger question is, what does all this mean for a farmer out in the rural Midwest? Farmers can save money on solar panels by taking advantage of grants and tax credits. There are a variety of financial benefits for farmers available to kickstart their alternate energy journey.
Solar power is quickly growing to be the leading source of energy next to fossil fuels and coal. The sun is a never ending source of energy. Even when the sun is down, we are able to store solar power in batteries to use during power outages or at night. The way we convert the sunlight is through photovoltaic cells on solar panels. People use solar to power their homes, stoplights and streetlights, and we’re progressing to use solar on public transportation vehicles
On top of the agricultural benefits, the pros far outweigh the cons. There are dozens of incentives for farmers to take advantage of. Enough to save nearly 64% when you make the transition.
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Solar Investment Tax Credit
A way to counteract the asset devaluation. It’s a simple way for businesses and farms to keep costs down and an increase in ROI while purchasing solar. The accelerated depreciation takes into account the devaluation of your solar assets before they are actually depreciated. In other words, you calculate the depreciation within the same year you purchase your new solar panel system. The purpose of this incentive is to counter installation costs and make solar more affordable in the beginning.
USDA REAP Grant
Also known as the Rural Energy for America Program. This is available to a limited set of people and only a specific amount is distributed. You are only eligible for the grant if you are a farm or a rural business in a qualifying area. You must also not owe any back taxes. It’s a competitive grant, but it can save you up to 25% in solar panel costs. We’ll assist you with applying for the REAP grant and ensure that you are eligible. Of course, not earning the grant isn’t the end of it all. Many of our clients have paid off their agriculture solar panel system within 8-10 years, leaving them with an extra 13-15 years of free energy they can put into their business.