Renewable Energy for Farms Category Guide

Why Consider Renewable Energy?

Dairy farms are energy-intensive operations—milking, cooling, ventilation, lighting, and feed processing all require significant power. Renewable energy can reduce operating costs, provide energy security, generate additional revenue, and demonstrate environmental commitment. As technology costs decline and utility rates rise, more dairy operations are finding renewables economically attractive.

Solar Power

Rooftop Solar

Mounting solar panels on barn roofs, commodity sheds, and other buildings provides clean electricity without using land. Large roof areas on dairy buildings are well-suited for solar. South-facing roofs are ideal, but east-west orientations can also work.

Ground-Mounted Solar

Ground arrays can be sized larger than rooftop systems and positioned optimally for solar exposure. They use land that might otherwise be marginal for other purposes. Dual-use "agrivoltaics" combine solar panels with grazing or hay production.

Net Metering

Many utilities offer net metering, crediting excess generation against electricity use at other times. This allows dairy farms to effectively "bank" daytime solar production for nighttime and winter use.

Financial Options

Purchase, lease, and power purchase agreement (PPA) options are available. Federal investment tax credits reduce costs for system owners. USDA REAP grants can cover up to 40% of project costs.

Biogas and Anaerobic Digestion

How Digesters Work

Anaerobic digesters process manure and other organic materials in enclosed tanks, producing biogas (primarily methane) that can be burned for electricity, heat, or upgraded to pipeline-quality renewable natural gas (RNG).

Co-Benefits

• Odor reduction from manure
• Pathogen reduction
• Weed seed destruction
• Nutrient stabilization in digestate
• Greenhouse gas emission reduction

Revenue Streams

• Electricity sales to the grid
• Renewable natural gas sales
• Renewable energy credits (RECs)
• Low Carbon Fuel Standard credits (California and other states)
• Tipping fees for processing off-farm organics

Considerations

Digesters require significant capital investment ($2-10+ million depending on size and technology), ongoing operation and maintenance expertise, and reliable markets for energy products. They work best for larger operations with 500+ cows.

Small Wind

Farm-scale wind turbines (10-100+ kW) can supplement other energy sources in windy locations. Site-specific wind resources are critical—professional assessment is essential before investing. Permits and neighbor acceptance can be challenging in some areas.

Other Options

Solar Thermal

Solar water heating can provide hot water for milkhouse cleaning, reducing propane or electric water heating costs. Simpler and less expensive than solar electric systems.

Geothermal

Ground-source heat pumps use stable ground temperatures for efficient heating and cooling. Can provide space heating, water heating, or milk cooling. High installation costs but very efficient operation.

Pre-Coolers

While not generation, plate coolers using groundwater to pre-cool milk before refrigeration reduce electricity demand significantly.

Getting Started

Energy Audit

Start by understanding your current energy use patterns. Many utilities offer free or subsidized energy audits that identify efficiency opportunities and right-size generation systems.

Site Assessment

Evaluate solar resource (roof condition, orientation, shading), wind resource (if considering wind), and digester feasibility (herd size, manure handling, space, permits).

Financial Analysis

Compare ownership, lease, and PPA options. Include available incentives—federal tax credits, USDA REAP, state programs, utility rebates. Calculate payback period and return on investment.

Vendor Selection

Get multiple quotes from reputable installers. Check references and verify experience with agricultural projects. Understand warranties, maintenance responsibilities, and performance guarantees.

Cost Considerations

Solar systems typically cost $2-4/watt installed, with 7-12 year payback depending on utility rates and incentives. Digesters require $2-10+ million capital investment but can generate significant revenue in favorable markets. USDA REAP grants cover up to 40% of project costs; application is competitive. Federal investment tax credit currently provides 30% credit for solar and other renewable energy.