Solar Electric Systems on the Farm: A Guide
Ohio is seeing a rise in the adoption of solar energy on farms, with an estimated 115 farms having installed solar electric systems as of 2009, according to a survey by the U.S. Department of Agriculture (2011). This number is expected to grow as solar energy expands to include grid-tied applications for applications with greater electrical demand.
As more farmers consider solar energy, choosing the right developer or installer is crucial. It's essential to select a company with experience in solar electric systems and a familiarity with local electric utility providers' inter-connection application process. When discussing plans with your local utility, potential barriers, and requirements for proper interconnection procedures should be addressed.
The national average cost for electricity in the industrial sector, including agriculture and irrigation, is projected to increase from 6.4 cents per kWh in 2013 to 12.8 cents per kWh in 2040 (U.S. Energy Information Administration, 2013). With energy inputs being a significant expense for agriculture, representing an average of more than 13 percent of total farm production expenses in 2005-08 (U.S. Department of Agriculture, 2011), investing in solar energy can help farmers reduce and stabilize electricity costs.
On-farm solar electric systems can offset the electricity demands for various applications such as grain drying bin circulation fans, livestock production buildings' ventilation and cooling systems, lighting, electric fences, feed handling, refrigeration, building ventilation fans, fans for crop drying, livestock water pumping, and irrigation water pumping. Examples of large-scale agricultural operations utilizing electricity from on-farm solar systems include animal housing (swine and beef cattle) and drying bins.
Ohio's net-metering law, enacted in July 1999, allows residential solar energy users to send excess electricity generated by their solar panels back to the grid in exchange for credits on their electric bills, typically at the retail rate. These credits can be banked indefinitely, helping reduce future electricity costs, especially when solar production is low. As of mid-2025, net metering is available from many Ohio utilities, enabling homeowners to offset their energy costs effectively by receiving bill credits for surplus solar energy sent to the grid.
Customers pay a monthly meter connection fee but benefit from being able to bank net metering credits indefinitely, increasing long-term savings. However, it's important to note that net metering in Ohio is part of a broader framework of state and federal incentives, with the federal solar tax credit (30%) expiring after December 31, 2025, which might affect the overall investment attractiveness.
While the net metering program remains solid and encourages solar adoption, specific rules regarding compensation rates, system size caps, or eligibility criteria may vary by utility and are subject to change. For the most precise and up-to-date details, contacting the local utility or reviewing the Ohio Public Utilities Commission resources is advisable, as net metering policies can change or be updated by utilities or regulatory bodies.
Investing in renewable energy supports farmers' role as stewards of the land, air, and water. By adopting solar energy, farmers can contribute to a cleaner environment and energy independence, making it an attractive option for many.
When considering a solar developer or installer, potential questions to consider asking include their business history, certifications, system cost and reliability, insurance, knowledge of local codes, handling of incentives and SRECs, ongoing operations and maintenance agreements, system warranties, assumptions in system payback projections, and referrals. A growing number of Ohio farmers have already invested in the development of on-farm solar electric systems to offset a portion of their electrical needs, making it a promising trend for the future of agriculture in Ohio.
- The rise in solar energy adoption in agriculture, such as on Ohio's farms, provides opportunities for livestock industry players to invest in renewable energy, thereby reducing and stabilizing electricity costs associated with energy-intensive applications like livestock water pumping and ventilation systems.
- With the increase in solar energy adoption in various sectors, including agriculture, the finance sector plays a crucial role by offering loans, grants, or incentives to support the transition, enabling farmers to invest in renewable-energy technology and utilize renewable energy as a reliable energy source.
- As the demand for solar energy grows in agriculture and across industries, technology advancements in areas such as energy storage solutions and grid-tied applications become essential to accommodate greater electrical demands, providing a more sustainable energy future for both the renewable-energy industry and farmers.
