Farming’s Future Lies in Solar Power – Making Sense of the Money
June 17, 2024
Solar energy adoption increases as farmers cut and secure costs
The choice to invest in solar energy should be viewed through a practical lens. The costs and benefits must be considered to fully understand the investment you are making in your farm. Let’s take a closer look at how solar solutions create energy independence.
Stabilizing electricity costs
Solar power provides farmers with the opportunity to secure their electricity costs for the next three decades. It gives them a consistent and predictable rate established on the day of installation. This shields farmers from the volatility associated with traditional utility pricing. In most cases, farmers can secure their energy from the sun at less than half of what they are paying their utility provider today.
“Our decision to install the NOREASTER micro solar farm was a game-changer for our farm. Not only that, but the addition of backup batteries for our chicken barn has already provided us with a consistent and reliable power supply, protecting us during a four-day power outage in the area.”
– Justin Dunphy, Dunphy Farms
Leveraging Canada’s Investment Tax Credit
Recognizing the financial constraints many farmers face, the 30% Clean Energy Investment Tax Credit (ITC) is a valuable mechanism to reduce the capital cost of renewable energy assets. Unlike capital depreciation tax deductions, the ITC is a refundable tax credit that can offer your farm a tax refund at the end of the year. Eligible investments include the installation of solar panels and wind power, energy storage, electric vehicles and clean hydrogen.
Financing options to preserve cash flow
Agricultural solar financing remains something of a mystery – how does a farmer determine the impact of a new installation on their cash flow? Increasing demand for cash-flow-positive solar solutions has driven demand for a new class of financing platforms that preserve operating capital and retain the savings realized through owning electricity production. Our partners at EnPowered lead the way in supporting solar installers with innovative financing solutions that help farmers maximize their clean energy investment while reducing operational impact.
Integrating solar storage
Beyond cost considerations, the integration of solar storage solutions ensures that farmers have a power supply they can rely on throughout the day. This contributes to operational self-sufficiency and energy independence. Typical storage options provide farms with backup power when the grid goes out and help offset the cost of peak electricity charges at various times of the day.
Owning electricity generation makes sense for farms
The transition towards solar energy on Canadian farms is not just an environmental consideration – but a practical one with tangible financial implications. It’s time to work together as a community to capture the growing potential of the sun as a reliable energy source for farm operations.
Curious about how The Smart Energy Company and our financial partners at EnPowered could help you finance a solar project on your farm? Reach out to our team today.