How can solar work for my business?

The first benefit of owning solar is reducing your energy costs. Solar systems produce for over 30 years with modest maintenance, so it is a long-term investment! The upfront cost of purchasing a solar system is offset by the 26% federal investment tax credit, depreciation tax benefit, and grants for renewable energy. Over time, energy savings on your utility bill will pay off the remaining balance of the system. Payback typically ranges from 5-10 years depending on your system size and location. The energy produced by the solar system will be extremely low-cost for the remainder of its life. This can result in a levelized cost of energy that is over 50% lower than what you are paying now. Solar panels have warranties that last up to 30 years, so you can be confident that this truly is a long-term investment in energy cost reduction.

While reducing energy costs is an initial objective, some farmers have generated lease revenue or sold power to others using under-utilized land on their farm. For example, a utility provider may be looking to increase the amount of renewable energy in their portfolio by installing their own solar array. If you have land near a substation in utility territory, it could be an ideal location for solar – and you would benefit accordingly by leasing that land. The ability to generate lease revenue or sell power to others is highly dependent on your location and your current utility provider. There are many potential scenarios where you can benefit, so exploring solar provide you with a better understanding of your options. Revenue diversification from solar, like the examples above, is an opportunity to strengthen farm economics.