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Solar Energy Use in U.S. Agriculture – Overview and Policy Issues

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  • Xiarchos, Irene M.
  • Vick, Brian

Abstract

This report serves as an overview of solar energy use by farmers and ranchers in the U.S. that identifies trends and future potential. Agriculture was an early adopter for remote applications. These are still cost effective today, but in the last decade agriculture has seen the number of grid‐connected systems and the average size of solar systems increase. System sizes range from 5 watts to 1 Megawatt (MW) and cost from a couple hundred to almost 10 million dollars. Some solar thermal installations are also used in agriculture, but are currently overshadowed by solar electric. Though solar energy can reduce energy cost volatility and greenhouse gases, its high capital cost and the lower average price of competing fuel remain impediments to growth. For this reason, development in solar has been policy driven. The report reviews the regulations and incentives that are available to farmers and ranchers and have recently boosted installations, and examines major financial influences. Solar energy development in agriculture varies considerably by State, incentives, and energy prices.

Suggested Citation

  • Xiarchos, Irene M. & Vick, Brian, 2011. "Solar Energy Use in U.S. Agriculture – Overview and Policy Issues," USDA Miscellaneous 356481, United States Department of Agriculture.
    • Handle: RePEc:ags:usdami:356481
    DOI: 10.22004/ag.econ.356481
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