Renewable Energy Developers for Agriculture
Part of Water, Environment, and Climate
What Are Agricultural Renewable Energy Developers?
Renewable energy developers are companies that design, finance, build, and often operate clean energy projects on agricultural land. For dairy farms, this typically means solar arrays on rooftops or marginal land, wind turbines, or integration with biogas systems. These developers handle the complexity of energy projects, allowing farmers to benefit without becoming energy experts.
Why Renewable Energy Makes Sense for Dairies
Dairy farms are energy-intensive operations, with significant electricity demands for milking, cooling, lighting, and ventilation. High energy costs directly impact profitability. Renewable energy can reduce or stabilize these costs while meeting growing demand for sustainable dairy production.
Key Benefits
- Reduced energy costs: Generate your own electricity at lower long-term cost
- Price stability: Protection from utility rate increases
- Additional revenue: Lease land to developers or sell excess power
- Sustainability credentials: Meet processor, retailer, or consumer sustainability demands
- Tax benefits: Investment tax credits and depreciation advantages
- Land utilization: Generate income from marginal or underutilized land
Types of Renewable Energy Projects
Solar Photovoltaic (PV)
Most common option for dairy farms. Can be installed on barn roofs, over feed storage, or on ground-mounted arrays. Systems range from small on-farm installations to large solar farms on leased land.
Agrivoltaics
Elevated solar panels that allow continued agricultural use below—grazing, hay production, or crops. Emerging approach that maximizes land value.
Wind Energy
Small to utility-scale wind turbines. Best in areas with consistent wind resources. Can provide land lease income for large turbines.
Biogas-to-Energy
Converting manure biogas to electricity or renewable natural gas. Often developed in partnership with specialized biogas companies.
Development Models
Farm-Owned Systems
You invest in and own the system, capturing all energy savings and incentives. Higher upfront cost but best long-term returns.
Power Purchase Agreements (PPA)
Developer builds and owns the system on your property. You buy the electricity at a fixed rate, typically below utility prices, with no upfront investment.
Land Lease
Lease land to a developer for a solar or wind project. Receive annual lease payments ($800-1,200+ per acre) while the developer sells power to the grid.
Is Renewable Energy Right for Your Farm?
Consider renewable energy if:
- High electricity costs (>$0.10/kWh)
- Suitable roof space or available land
- Good solar or wind resources in your area
- Interest in long-term cost stability
- Sustainability goals or customer requirements
Renewable energy may not fit if:
- Very low electricity rates
- Poor solar/wind resources
- No available roof or land area
- Short-term planning horizon (moving or selling)
Cost Considerations
Solar PV systems cost $2.50-4.00 per watt installed, with a typical dairy barn system of 100-300 kW costing $250,000-1,000,000 before incentives. Federal Investment Tax Credit (currently 30%) plus state incentives and depreciation can reduce net cost by 40-60%. PPAs require no upfront investment but offer lower savings. Land leases for solar farms provide $800-1,500 per acre annually. Most farm-owned systems achieve 5-10 year payback with 20-25 year equipment life.