Agriculture
Solar Benefits
Whether it's your goal to maximize benefits or provide positive cash flow, we can help determine a package that delivers the financial results you desire.
Solar Security
You can own your own solar system for $0 down and a lower monthly payment than you pay to your utility company.
USDA REAP Grants, Tax Credits, and Bonus Depreciation for Farms
In addition to federal incentives, each state may have its own renewable energy incentives.
Solar Questions?
If you have any questions, feel free to contact our trained staff. We will be happy to help!
Agricultural Solar Installation for Michigan Farms
Quality Solar is Michigan’s preferred solar panel installer. We specialize in solar panel installation for agricultural uses, so you can start racking up savings from government benefit programs, protect against rising utility costs, help the environment, and even increase the value of your farm.
Your farm requires a lot of energy to keep running and solar energy can help cut costs. With solar energy, you can keep your farm running efficiently with the dependability that renewable energy from the sun provides.
Contact us today and ask about the USDA REAP Grant program.
Accelerated Depreciation
Under current federal tax law, qualifying solar equipment is eligible for 100% bonus depreciation in the first year it's placed in service. This permanent provision, enacted under 2025 federal tax legislation, replaced the previous 5-year MACRS depreciation schedule and allows farm operations to deduct the full qualifying cost of a solar system in year one rather than spreading it over several years. When combined with the federal Investment Tax Credit, the depreciable basis is reduced by half the credit amount taken. A tax professional can walk you through how this applies to your specific operation.
Grants
Renewable Energy for America Program – (REAP) grants are part of the Energy Title of the 2014 USDA Farm Bill. It provides grant and loan guarantees to agricultural producers and rural small businesses to help purchase renewable energy systems. It also supports energy efficiency improvements and beneficial studies for renewable energy. For qualifying businesses, a REAP grant can be sought from the United States Department of Agriculture. If approved, 50% of the project cost is settled by the grant.
Investment Tax Credit
Qualified companies can claim a federal Investment Tax Credit (ITC) of 30% of the total project cost with no cap on the amount that can be claimed. The ITC may also be rolled forward into the following tax year if it cannot be used in the current year.
FAQ
How Do I Know If Going Solar is Right for My Farm?
Quality Solar consider our primary customer service to be education. Once our customers understand solar as it is applied to their unique situation, they can then make the wise decision to go forward. Please contact us with any questions you may have, and we will respond within two business hours.
Yes. Farms use significant amounts of energy for irrigation, grain drying, cooling, and daily operations, which makes the return on a solar investment substantial. Solar also protects your farm from unpredictable utility rate increases by locking in a stable energy cost for the 25 to 30 year life of the system.
Agricultural producers can access the USDA Rural Energy for America Program (REAP), which provides grants covering a portion of eligible project costs up to $1 million, along with loan guarantee options. Farms can also access the federal commercial solar tax credit and 100% first-year bonus depreciation, though exact terms depend on when construction begins and should be confirmed with a tax advisor given how frequently federal solar policy has changed recently.
Very reliable. Solar components have few or no moving parts, which keeps maintenance needs low and uptime high compared to standard grid electricity, even during extreme weather.
Yes. Solar is often the most cost-effective way to power water pumping, remote equipment, and off-grid buildings where running new electrical lines would be expensive. It's also used for space and water heating, which can account for up to 40% of a dairy farm's energy costs.
Options include $0 down financing, long-term farm loans through lenders such as Farm Credit and Greenstone, and PACE (Property Assessed Clean Energy) financing, which helps cover upfront costs for renewable energy improvements.
Financing Options for Farm Solar Projects
- $0 down financing.
- Long-term Financing Available.
- Farm Credit: Institution that provides lending options and favorable farm loans.
- Greenstone: Financial lenders for America’s rural and farming residents. They offer short and long-term leasing and loans.
- PACE: Property Assessed Clean Energy is a financing structure that provides funding for efficiency improvements and renewable energy projects. PACE programs help pay for the upfront costs of green initiatives, such as solar panels. Their goal: To reduce local greenhouse gas emissions by offering affordable loans so owners can enjoy energy efficiency as well as clean the air.
Space and Water Heating
The high energy costs to maintain farming operations can be significantly offset by solar. Up to 40% of a dairy farms' energy costs come from heating water and cooling milk. Air needs to be recirculated and heated in enclosed buildings that house pigs and poultry.
Water Pumping
Where there are no power lines, solar power is a viable method of pumping water. Significant amounts of heated water are used to clean equipment on commercial dairy farms.
Remote Electric Supply
Often there are needs for electricity in remote locations where it is not cost effective to run power lines. Solar can power these requirements or store energy in a battery.
Crop and Grain Drying
LP gas drying methods cannot compare to the cost of drying through free renewable energy. Solar dryers protect profit against volatility in the gas markets.
