Agriculture is the ultimate renewable energy system. Plants make the sugar, fiber, and proteins we use out of abundant sunlight, free rainwater, and thin air.
Why then does farming use so much fossil fuel?
The agriculture sector contributes over 10% of greenhouse gas emissions annually. Many farmers face high energy bills and fuel costs for heating, cooling, lighting, irrigation, and machinery. With that in mind — given the unreliable power grid in many rural areas and the lack of resilience in our energy systems — agrivoltaics, the dual production of solar energy and agricultural goods on the same farmland, may be the wave of the future.
In RAFI’s granting programs, we see frequent requests for investment in renewable energy projects, particularly solar power. Observant farmers see the sunshine that feeds their crops as a potential alternative source of electricity and a path to clean energy independence.
Marie McGruder of McGruder Farms in Northwest Alabama used her RAFI 2023 Beginning Farmer Stipend to purchase and install a 7.2 kW solar generator that powers her farm’s well, originally dug by her great-grandfather over 100 years ago. McGruder says, “The system is located in our high tunnel and we now have fans moving the air within the tunnel and cooling down our indoor plantings. My great-grandfather’s well has consistent and permanent power and the overhead irrigation system is working wonderfully. We now have the power necessary to expand our infrastructure on the farm.” She plans to ramp up the modular system to 19kW over the next year to power her entire operation.
Farmers seeking funds for on-farm renewable energy got some good news recently from the Biden Administration. The Rural Energy for America Program (REAP) received $2 billion in funding with the Inflation Reduction Act, a giant increase in funds compared to previous years.
Major updates include a higher percentage of costs covered, and quarterly rather than annual competitive application windows to reduce lag time. REAP also adjusted scoring criteria to increase the weight of environmental benefits and prioritize locations in distressed or disadvantaged communities.
Through a REAP grant, agricultural producers — an individual or entity receiving 50% or more of gross income from agricultural sales — can be eligible for a 50% cost share on energy efficiency and renewable energy projects. The program also offers up to 75% guaranteed loan assistance.
Noah Poulos of Wild East Farm in Old Fort, NC recently received a 40% REAP cost-share grant for a robust solar system that will power the full operation including a well pump, workshop, walk-in coolers, barn outlets, and heat lamps. It will also charge his electric riding mower and other battery-powered equipment, and has 600 amp-hrs of battery storage for off-grid capability. While he didn’t hire a grant writer, Poulos reports getting application assistance from staff at Appalachian Voices, a local nonprofit. He also was in frequent contact with Bill Tew, the USDA State Energy Coordinator for NC. Poulos says, “Don’t be intimidated by the process, just follow the step-by-step.” Interested farmers should contact their state energy coordinators, found on the REAP website. The next quarterly application window closes March 31, 2024.
Farming with solar panels
While most farmers agree that on-farm power generation is a good thing, some also note that “solar farms” are increasingly cropping up on agricultural land. (See Breyon Pierce’s comment in “Drones, Robots, and the Next Generation in Ag,”) These large-scale development projects are owned not by farmers but by utility companies — often with 15- or 25-year leases with extensions that can last 50 years, potentially reducing the farms’ flexibility in the future.
We were curious about the apparent tradeoff between growing food and transitioning to clean energy at the utility scale. What are considerations for farmers interested in “solar farming” as part of their income stream?
We reached out to Brock Phillips, Director of Livestock Services at Carolina Solar Services. Brock manages a flock of some 250 breeding ewes and four guardian donkeys to graze utility-scale solar installations. The sheep provide landscaping services, preventing grass and weeds from overgrowing the panels and blocking sunlight. Phillips says farmers who want to raise sheep but have only limited acreage can provide the grazing service to solar farm landowners and expand the forage availability for their flock. Sheep may then be sold in specialty markets. Phillips notes an “interesting connection between growth of solar in NC and demand for lamb meat as demographics shift.” In particular, he sees population growth in Latinx and Muslim communities as an opportunity to provide locally produced lamb to customers.
Phillips doesn’t see a land productivity tradeoff of agrivoltaics. “Most of this was land that people didn’t like to farm anyway,” he says. The NC Sustainable Energy Association and the NC Department of Agriculture undertook a study and released a report, “North Carolina Solar Land Use and Agriculture,” that puts land use by solar in context with land use for other forms of redevelopment. Solar was shown to be only about 0.3%, plus it requires a comparatively small amount of infrastructure. “At the end of the solar farm’s lease, it’s easier to turn a solar farm back to farmland than for a residential community to become a farm again. For the farmers who lease a plot to the utility, it’s an extra income stream on marginal acres. I see what we’re doing as farmland preservation,” Phillips reflects.
While the financial opportunities are real, it’s important for any landowner to understand the full implications and terms of contracting with a solar utility. Such a lease is a “generational decision,” and legal issues surrounding developer due diligence are not uncommon. According to NC State Extension guidance, “all negotiations must take place prior to signing the first document,” so landowners should be thoroughly informed and prepared as they entertain a solar farm opportunity.
We may be “farming on sunshine,” but we’re still living on earth.
Mary Saunders Bulan, RAFI’s Farmer Services Director, runs a small herb, flower, and vegetable farm in Western North Carolina with her partner. Prior to joining RAFI, Mary was a college professor teaching agriculture courses, mentoring research, and managing campus farming programs. With a Ph.D. in Agronomy from the University of Wisconsin-Madison and a BA in International Relations from Brown University, Mary has served on the faculty at Warren Wilson College in Asheville, NC, and Unity College in Unity, ME.