Harvesting The Sun! How Can Farms Benefit From Going Solar?
If anyone can speak to the power of the sun-it’s Farmers! Very few people use the land in a way that gives so much back to us! Farmers have already optimized some of their resources like land and water usage and have developed strategies around crop rotation to utilize their yields. The growth of the solar industry has made it now possible for Farmers to utilize the sun in new ways too! The Agriculture industry consumes a large amount of energy-both directly with electricity, and indirectly through energy-sensitive inputs (i.e fertilizers). Farmers also tend to be some of the first to be impacted by the negative effects of climate change. By going solar, Farmers are able to reduce operating costs, protect their future and promote sustainability.
Reduce Operating Costs and Protect your future
Farms (whether for crop production or livestock) have a wide range of operating costs. Farms are faced with costs for things such as equipment repairs, running irrigation pumps, purchasing commercial feed and fertilizers, and of course the ever-growing energy costs needed to power the farm! Increasing energy costs=an increase in production costs. This causes net returns to decrease, which can cause farmers to reduce plantings. This ultimately raises crop prices- but not enough to offset a lower farm net-income! If energy rates continue to increase, there is a high likelihood that many farms will turn to less energy intensive crops (like soybeans instead of corn) and total planting would be reduced1.
With inflation and service improvements, an average electricity bill sees an annual increase of 2.1%. There is no doubt that these rising rates will have an impact on a Farm’s production costs. When building a solar proposal, we factor rising electricity costs in and assume an average 2.1% electricity rate increase per year. By installing solar panels, Farmers can protect themselves from being impacted by the increasing rates of electricity!
Luckily farms have the advantage of (often) having large spaces, whether that be on the barns or in any unused fields, that are perfect for solar installations. By using solar power for farms, farms are able to produce their own electricity and decrease their electric bills. A net metering approach is used so that during times of excess energy production energy is stored as credits for future times when energy is unable to be produced (like at night). Some systems can even be designed to cover 100% of the Farm’s energy needs!
Promote sustainability and fight climate change!
Along with plant-based diets and net zero initiatives, a transition to renewable energies is a sustainability trend that is not going to go out of fashion. Our society is focusing more and more on these items and a business’s compliance to these trends are influencing consumers. purchasing decisions. By harnessing solar energy, farms are able to market to this new consumer demand.
In addition to solar being an attractive marketing strategy, Farms can significantly help to reduce CO2 emissions which contribute to climate change. According to the most recent National Inventory Report released by Environment and Climate Change Canada, 26% of Greenhouse gas emissions are from the Agriculture sector. Global efforts are aiming to limit global warming by 1.5°C by 2030 as allowing global temperature to increase more than 1.5°C will significantly worsen the risks of drought, floods, extreme heat, and poverty2. The fight against Global Warming is therefore extremely important to the success of a Farm.
Solar energy is becoming a leader in the fight against rising energy costs and climate change-two items that directly impact the success of a Farm. Farmers need to be able to keep production costs low and yields high in order to be profitable. By going solar, Farms can produce their own energy and protect themselves from rising electricity costs and environmental concerns that result from high greenhouse gases. As consumer demand for sustainable solutions continues to grow, Farmers can act now to become pioneers in harnessing the sun for more than just its photosynthesis power! Book your FREE solar assessment and let us show you how going solar can benefit your farm!
References
Sands, Ronald and Paul Westcott (coordinators), J. Michael Price, Jayson Beckman, Ephraim Leibtag, Gary Lucier, William McBride, David McGranahan, Mitch Morehart, Edward Roeger, Glenn Schaible, and Timothy R. Wojan. Impacts of Higher Energy Prices on Agriculture and Rural Economies, ERR-123, U.S. Dept. of Agriculture, Econ. Res. Serv. August 2011. Retrieved from https://www.ers.usda.gov/webdocs/publications/44894/6814_err123_1_.pdf?v=2649.
Government of Prince Edward Island. A Climate Change Action Plan Progress Report. 2018-2019. Retrieved from https://www.princeedwardisland.ca/sites/default/files/publications/climate_change_action_plan_progressreport_2019.pdf