Solar Energy Farming FAQ: Common Questions on Agricultural Solar

This solar energy farming faq helps landowners understand how to integrate solar panels into farming environments. Integrating solar energy into agricultural operations provides a way to generate power.

Farmers make decisions related to energy usage, land optimization, and financial returns. Installing solar lowers monthly operating expenses. This guide provides answers about agricultural solar projects.

Solar Energy Farming FAQ: The Questions Farmers Ask Most

There isn’t an industry that exists that doesn’t feel the effect of change. While the fundamentals and basic biology of agriculture remain (mostly) intact, the world around your farm, vineyard, or crop of choice continues to evolve at a rapid rate.

This means, for all the ways that we do ag-business the same, just as many ways have and will continue to evolve.  

Generating energy to grow, feed, harvest, and transport your product is no easy task. With the advent of electricity, we now have a much easier time of it, but with electricity usage comes electric bills.  

The demand for food-grade crops has risen considerably, due in large part to the increase in income for most of the developed world. But that increase in demand did not bring with it a more efficient way to produce it.  

That’s where solar energy can come in.  

Not only can solar energy help you reduce the cost of production, but it can actually drive a positive return on your bottom line.  

But there is still so much unknown about how to actually use solar in the ag world that we wanted to gather the top questions we get asked to help provide more clarity on how it works, how it benefits you, and what to do if you’re interested in learning more.   

Why should I invest in solar energy for my farm?

Depending on your crop/product of choice, your two larges expenses are either feed or electricity. While electricity rates as a whole are difficult to predict, it’s expected that they will continue to increase.  

Investing in the installation and adaption of your operation to solar power will protect you from the volatility of electricity rates. With options like purchasing or even leasing complete solar systems, you have the option to stabilize your energy spend – or even eliminate it all together.  

Your two largest operating expenses are likely feed or electricity. Electricity rates are unpredictable and trending upward, which puts pressure on your margins year after year.

Beyond the energy output itself, federal tax credits and state incentives can offset a significant portion of your installation costs. The USDA's Rural Energy for America Program (REAP) offers grant funding that covers up to 25% of the cost of installing solar on qualifying agricultural land.

Read about the Energize Delaware grant program, which provides additional funding avenues.

Does Running My Business on Solar Affect My Bottom Line? If So, How?

For all the complications that come along with running a business, the science of your bottom line is pretty straightforward. Take what you bring in, minus what you spend, and what’s left is profit.  

Farms can check solar efficiency versus ROI expectations to calculate exact payback periods.

Leveraging solar power to provide the energy that you need to run your farm or operation provides you with a passive way to reduce a significant line item of expense.  

A California-based fruit producer is saving $500,000 annually on their energy cost. 

How Can Being More Sustainable Help my Business Grow? 

While we might risk sounding “trendy” in our answer, the right response is still the same. Consumers and the food retailers that bring your product to market care deeply about sustainably.  

Each generation dedicates more of its resources, education, and personal equity into finding more sustainable ways to live. Including how their food is created.  

Align your agricultural practices with the triple-bottom line, a concept pioneered by author John Elkington.  

THE TRIPLE-BOTTOM LINE FACTORS IN A COMPANY’S FINANCIAL HEALTH, OR PROFITS, BUT ALSO MAKES AMPLE ROOM FOR MEASURING ITS IMPACT ON PEOPLE AND THE PLANT. 

Study after study shows that sustainability isn’t just good for the planet; it’s good for business. 

If Solar is So Great, Why Aren’t More Businesses Installing It? 

In reality, a lot of well-known companies have gone solar, including major retailer, Target.  

Many factors must be considered when corporations are considering solar, including: 

• Their current building ownership type 

• The cost of adoption during installation (is there any down time?) 

For ag-business, space is rarely an issue and most of your operations are not dependent on a steady 8am-8pm or even 24/7-foot traffic in your buildings.  

The adaptation of solar power is happening. The question is whether you will benefit from it?  

Many owners hesitate due to common misconceptions, but reviewing busted solar power myths helps clarify the reality of modern hardware adoption.

How do solar farms work on agricultural land?

Solar farms work by using solar PV panels or solar arrays to capture sunlight and convert it into solar-generated electricity. That electricity either powers your farming equipment and operations directly, gets stored in a battery system, or feeds into the power grid.

For farms, solar systems typically fall into one of two setups:

Rooftop solar — Solar modules installed on barn roofs, storage facilities, or processing buildings. This is common for farms that want to offset energy usage without giving up any ground.

Ground-mounted solar arrays — Solar panels installed on open land. These work well for farms with unused acreage, and depending on your state's net metering rules, a larger system can generate power for the surrounding community through community solar or community solar farm programs.

Some agricultural operations also use agrivoltaics, where solar arrays are installed above crop rows. This setup lets farmers generate energy and grow shade tolerant crops simultaneously without sacrificing the full use of their agricultural production land.

Does going solar actually affect my bottom line?

Yes. The math is straightforward: solar reduces a significant line item in your operating expenses.

One California-based fruit producer saves $500,000 annually on energy costs after installing solar. That kind of reduction in energy usage doesn't just improve margins — it changes what's possible for the operation.

The return depends on your system size, energy needs, solar farm financing structure, and what incentives apply in your area. Cash purchases tend to deliver the best ROI because you take full advantage of federal tax credits and can depreciate the system as a capital expense, similar to other farming equipment.

Power purchase agreements (PPAs) require little to no upfront cost but come with a different cost structure over time.

Will solar panels take up too much of my land?

How much land you need depends on your energy goals and system type. Rooftop panels use existing structures and require no additional acreage.

Ground-mounted solar systems do use land, but modern tracking systems and higher-efficiency solar PV have reduced the footprint needed to generate a given amount of power.

If you have unused land, ground-mounted solar is a good way to use it without hurting your farming. If you use every acre, rooftop solar or a smaller ground system might be a better fit.

In agrivoltaic setups, solar arrays and crops share the same land. Research from the National Renewable Energy Laboratory (NREL) and other sources has found that certain configurations can actually improve soil health, reduce soil erosion, and support crop yield — particularly for shade tolerant crops — while still generating energy.

What are the environmental benefits?

Solar power lowers your farm's carbon footprint. Farms already face pressure from changing weather, and switching to clean energy is a direct way to respond.

Knowing how solar saves for rainy days and maintains output through weather shifts ensures a reliable transition to clean energy.

Replacing grid electricity — which often still includes power from fossil fuels — with solar generated electricity reduces your operation's contribution to greenhouse gas emissions. Over the life of a solar system, the reduction in carbon emissions is substantial.

Beyond carbon footprint, solar arrays on agricultural land can support ground cover, reduce soil erosion, and, in some configurations, improve soil health by moderating temperature and moisture levels beneath the panels.

What does the installation process look like?

The installation process typically involves a site assessment, system design, permitting, installation, and grid connection. Local regulations and utility requirements vary, so working with an experienced solar developer who knows your area matters.

At TerraSol, we manage the entire process — from system design through permitting, installation, and connection to the electric grid. We also handle the paperwork for applicable incentives so you're not navigating that alone.

Most agricultural solar installations don't require significant downtime for your operation. Unlike commercial buildings with heavy foot traffic, farms can typically accommodate solar installation without disrupting day-to-day work.

Is the solar industry reliable enough for a long-term investment?

Yes. Solar energy technologies have matured significantly. Technology advancements in solar PV panels, solar modules, and tracking systems have improved efficiency and lowered costs consistently over just a few years.

The National Renewable Energy Laboratory and the Solar Energy Technologies Office track and publish ongoing data on solar energy production performance and grid reliability.

Large scale solar farms now power thousands of homes and businesses. Utility scale solar and utility scale solar farms are a significant part of how grid operators maintain grid stability and grid reliability in many regions. The solar industry isn't new — it's infrastructure.

For farmers, the long-term case is strong: solar systems typically carry 25-year performance warranties, and most solar installations continue to generate power well beyond that. The electrical equipment involved is low-maintenance, and project decommissioning at the end of life is straightforward.

How much land do solar projects require, and does it impact agricultural production?

Determining how much land you need depends on the project size. Landowners choose between solar farms or systems. Large-scale solar farms require acreage, while rooftop panels or rooftop solar installations on barns utilize structures.

Implementing solar on agricultural land does not automatically displace agricultural production. For instance, growing shade-tolerant crops under elevated solar PV panels allows you to maintain crop yield while you generate clean energy.

How do I get started?

Schedule a free consultation with TerraSol. We'll assess your operation, walk you through your options, and help you figure out whether solar energy — whether rooftop solar, a ground-mounted solar facility, or a larger solar development project — fits your situation.

If you have more questions about solar energy farming FAQ topics like system sizing, local incentives, or what the installation process looks like for your specific type of operation, we're happy to answer them directly.