Grants & Financing

You have decided to go solar. Now comes the question that stops most farmers cold: how do I pay for it? Cash purchase, solar loan, and PPA produce radically different 25-year outcomes. The wrong choice can cost you hundreds of thousands of dollars. Farms consume 70% to 90% of their solar production on-site — which means a PPA designed for a commercial customer will systematically undervalue your electricity. This article runs the full 25-year cash flow math for all three options on a 250 kW system, and explains why a solar loan captures the 30% ITC while a PPA forfeits it entirely.

The 30% federal solar tax credit expires on December 31, 2027. On a $500,000 farm system, missing that deadline costs you $150,000. But the incentive landscape in 2026 is confusing — REAP windows have been paused, bonus depreciation is phasing down, and the “placed in service” rule means signing a contract is not enough. This article gives you the exact framework to stack the 30% ITC, a USDA REAP grant, and MACRS depreciation to reduce the net cost of a farm solar system by up to 95%. Includes a worked $160,000 example with a sub-one-year payback.

At $4/gallon, diesel generates electricity at roughly $0.35/kWh. Solar, amortized over 25 years, delivers the same kWh at about $0.04 — with zero price volatility, forever

Stop trusting salesmen. Here is the exact 6-step formula to calculate payback period, net present value, and kWh cost for any farm solar project — pump, fan, or array — using your own electric bill.