Solar-powered farms are sprouting in New Jersey to promote the sustainable agricultural technology of today. The question is, how can farmers afford this transition?
How can Farms Benefit from Going Solar?
Solar energy is not limited to homes and offices. Farms have huge ground areas, making them an ideal spot to build a comprehensive solar energy system. Additionally, many farms have barns with enormous roofs perfect for setting up solar panels.
Farmers who reside by their farm can utilize the solar system and even qualify for solar leases or loans. When third-party providers cover the upfront installation costs, the transition becomes so much easier. Therefore, solar power reduces energy costs while increasing your overall profit. And this is only from having to spend lesser time in traditional electric utilities.
Take Advantage of These Incentives
Solar farms can obtain long-term financial gains to manage the rising utilities in the coming years. Here are the incentives you can acquire from going solar.
Federal Tax Credit
Solar farms are entitled to the 26% federal tax credit intended to cover your solar system installation. It is essential to inquire about this as early as possible, for it will decrease in 2021 (22%).
Transition Renewable Energy Certificates (TRECs)
Farms in NJ and small businesses also benefit from Transition Renewable Energy Certificates (TRECs). TRECs is a performance-based incentive wherein you can receive a fixed amount of $152 for meeting specific requirements (it is $91.20 for ground mounted commercial which would be a lot of the farms).. For instance, if your system can generate 12,430kWh annually, you can receive 12 TRECs. These 12 TRECs amounts to comes to $1,824 for commercial worth of savings.
Rural Energy America Program (REAP)
REAP is granted to small businesses and farms in rural and urban areas to fund their renewable energy systems. Those who obtain at least 50% of their gross income from their agricultural operations can qualify.
What’s great about this program is you can also use this for any future solar equipment purchases. Thus, there are no restrictions on the costs of solar system installations alone. REAP can cover up to 25% of the installation costs and lend 75% of the overall solar energy costs.
Here are the eligible energy efficiency improvement projects REAP can fund:
- High-efficiency heating, ventilation, and air conditioning systems (HVAC)
- Cooling or refrigeration units
- Doors and windows
- Electric, solar, or gravity pumps for sprinkler pivots
- Switching from diesel to electric irrigation motor
- Replacement of energy-inefficient equipment