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USDA Solar Grants and Loans Witness a Sharp Increase in Demand

Federal funding can offset solar energy system costs for farmers, with USDA's REAP program offering significant financial support.

Solar Energy Opportunities for Agricultural Producers

Many agricultural producers may perceive solar energy systems as high initial cost investments, but available federal funding can offset these expenses. For example, a South Carolina poultry farmer recently utilized federal funds to cover the full cost of his $300,000 solar panel system, as reported by The Wall Street Journal. This system is projected to eliminate the farm’s annual utility bill and potentially generate revenue through selling excess power to local utilities.

Now is an optimal time for agricultural producers to consider solar energy systems, with federal and state tax credits, grants, and loans readily available. However, the ability to sell excess power may not be available in all regions.

USDA’s Renewable Energy Program Receives $2 Billion Boost

Historically, the U.S. Department of Agriculture’s (USDA) conservation and renewable energy programs have been oversubscribed. The Inflation Reduction Act, signed by President Joe Biden in 2022, addressed this issue by allocating over $2 billion to the USDA’s Rural Energy for America Program (REAP). This program offers guaranteed loan financing and grant funding to agricultural producers and rural small businesses.

The increased REAP funding will continue through 2031, with agricultural producers able to utilize the program for installing renewable energy systems or making energy efficiency improvements. Additionally, producers may apply for new energy-efficient equipment and system loans for agricultural production and processing.

Producers can also leverage tax credits to offset renewable energy project costs. For smaller projects, tax credits can cover up to 70% of costs. This includes a 30% credit for all renewable energy projects and an additional 40% in bonus credits for projects using U.S.-made materials, located in former fossil-fuel regions, or situated in low-income communities.

Increasing Demand for Rural Solar Projects

Basil Gooden, USDA’s undersecretary for rural development, stated that the demand for rural solar projects is “skyrocketing.” This surge in interest is due to the nation’s growing focus on renewable energy and increasing electricity costs. Many farmers, livestock producers, processors, and landowners are exploring solar energy as a solution to reduce utility bills.

In 2023, the USDA invested over $362 million to assist farmers and rural small businesses in accessing renewable energy systems like solar. The Inflation Reduction Act funding was responsible for most of these investments. In April, the USDA announced additional funding for over 700 clean energy projects, with more than $194 million in REAP loans and grants supporting projects in 35 states.

REAP is accessible to producers in all states, with businesses needing to be located in rural areas with populations of 50,000 or less. Agricultural producers, however, can be located in rural or nonrural areas. The next application period for REAP’s renewable energy guaranteed loans and grants runs from June 30, 2024, to September 30, 2024.

Solar Developer Options and Solar Project Funding

Producers who prefer a smaller time or money investment can lease their farmland to a solar developer. This allows them to receive rental income without using the power for their farm-related operations. They can also sell their land to the developer as a purchase option, using the funds to liquidate debt, buy other land, or cover other needs.

Integrating a solar project into a farm can not only reduce a producer’s carbon footprint but also lower energy costs significantly. However, it is recommended that producers seek expert advice before committing to a solar project or lease.

For more information on solar project funding, visit:

Original Story at hpj.com

Trending News

Mississippi River Faces Persistent Saltwater Intrusion, Region Seeks Long-Term Solutions



For the third consecutive year, the Mississippi River is experiencing significant saltwater intrusion, prompting local communities and environmental experts to search for sustainable solutions. This recurring issue arises as the river’s flow decreases, allowing saltwater to move upstream and threaten drinking water supplies. The U.S. Army Corps of Engineers is actively involved in addressing this problem, employing temporary measures like saltwater barriers to mitigate the impact on affected areas.



Saltwater infiltration poses serious risks to public health and agriculture, as freshwater sources become compromised. The situation is exacerbated by prolonged periods of drought, which have reduced freshwater flow in the Mississippi River. According to the National Weather Service, drought conditions have worsened due to climate change, increasing the frequency and severity of saltwater intrusion events.



Local authorities are collaborating with federal agencies to explore permanent solutions. Among the proposed strategies are enhanced levee systems and improved water management techniques. The U.S. Army Corps of Engineers is evaluating the feasibility of long-term infrastructure projects to prevent further saltwater encroachment. Additionally, community leaders are advocating for increased funding to support these initiatives and safeguard the region’s water resources.



The impact of saltwater intrusion extends beyond drinking water concerns, affecting local ecosystems and agricultural productivity. Farmers in the region have reported crop damage due to elevated salinity levels in irrigation water. The Natural Resources Conservation Service is working with farmers to implement adaptive practices, such as planting salt-tolerant crops and improving soil management techniques.



As the Mississippi River continues to face challenges from saltwater intrusion, stakeholders emphasize the importance of collaborative efforts and innovative solutions. The ongoing threat underscores the need for comprehensive planning and investment to protect one of America’s most vital waterways from the impacts of climate change and environmental stressors.

November 19, 2024



Environmental activists have raised concerns over the fossil fuel sector’s significant impact on COP29, the latest United Nations Climate Change Conference. Activists argue that the industry’s presence diverts focus from critical climate actions.



The conference, designed to promote global climate agreements, faces criticism for allowing fossil fuel companies to participate extensively. Environmental groups claim these companies undermine efforts to reduce carbon emissions and transition to renewable energy sources.



According to Climate Action Network, fossil fuel representatives have increased their lobbying activities, aiming to weaken climate policies. These industries allegedly influence negotiations, leading to watered-down commitments that fail to address the urgency of climate change effectively.



Experts suggest that the influence of these companies stems from financial contributions and longstanding relationships with decision-makers. Critics argue that this affects the conference’s ability to enforce meaningful climate change regulations.



During the event, several protests highlighted the need for transparency and a stronger focus on sustainable energy solutions. Activists are calling for increased participation of renewable energy stakeholders in future conferences.



The controversy surrounding fossil fuel involvement at COP29 underscores the ongoing challenge of balancing industrial interests with the global imperative to combat climate change.



November 19, 2024