Tag Archive for: AgriSolar

AgriSolar News Roundup: Australian AgriSolar Guide, Grid Access, Trans-Tasman AgriSolar 

Australian Guide to Agrisolar for Large-scale Solar Published by Clean Energy Council 

“As interest grows in agrisolar – using land for both agriculture and solar power – the Clean Energy Council has produced the Australian Guide to Agrisolar for Large-scale Solar to assist proponents of utility-scale solar and the landholders and farmers who work with them to integrate agricultural activities into solar farm projects.” – Renewable Energy Magazine 

Agrisolar: Solar Industry Hopes Farmers Will Help Solve Grid Access Problems  

“The Clean Energy Council says working with Australian farmers could help solve the growing problem of grid access for new large-scale solar farms, in a new paper promoting ‘agrisolar’” If done right, the paper argues solar farms can improve both grazing and crop land, while allowing solar farms to be built in areas where the electricity network is strong, providing a win-win for both solar developers and farmers.” – Renew Economy 

Dairies Powered By the Sun and Batteries: Trans-Tasman AgriSolar Start-up Gathers Pace 

“A New Zealand-based start-up offering dairy farmers cheap and reliable solar and battery-backed power purchase contracts has raised $4 million from an Australian-led investment round. Based in Christchurch, Solagri installs solar and batteries on dairy farms in the Canterbury region of New Zealand at no up-front cost, instead signing the farmers up to long-term PPAs guaranteed to supply 100% of their dairy sheds’ electricity needs.” – One Step off the Grid 

Financing and Incentive Options for Solar

By: Andrew Valainis

Director, Montana Renewable Energy Association (MREA)

According to the Solar Energy Industries Association, the cost to install solar has dropped more than 60% over the last decade alone, with the average residential system costing half of what it did in 2010.[1] Still, solar photovoltaic systems are a large investment, and the up-front cost can be challenging for many Americans. In this blog post, I will explore some of the financing and financial incentive options available to help pay for these systems. I use Montana’s available options as examples, though financing and incentive programs will vary state to state.

One of the most popular and most important incentives in the U.S. is the Solar Investment Tax Credit (ITC). The ITC is a federal income tax credit that you can claim against the cost of the installation. This credit applies to the total cost of the installation, including labor. If you decide to install a storage system at the same time as the solar system, then you can include that cost as well. There is no upper dollar limit on how much the credit is worth. The ITC was originally set at 30% but stepped down to 26% in 2020 and will continue to step down over the next few years. In 2020, the phase-out schedule was extended for two years as part of the spending bill that Congress negotiated. The ITC will remain at 26% until 2023, when it will step down to 22% for all customers. In 2024, it will expire for individuals, while stepping down permanently to 10% for businesses.

Federal ITC Step Down 2020 Extension.

Another great option is the U.S. Department of Agriculture’s “Rural Energy for American Program” (REAP). The REAP program provides grants – not loans – to qualifying agricultural and small businesses for up to 25% of the cost of a renewable energy project, up to $500,000. Energy efficiency grants and loan guarantees are also available through the program. This is an excellent option for agricultural producers. USDA has local offices all around the country, and I highly recommend calling them to ask about the program and how you can benefit.

In 2022, Congress passed the Infrastructure Investment and Jobs Act (IIJA), which provides a large amount of funding for the installation of renewable energy technologies. Details are still coming out about several of the different funding opportunities, which may apply to businesses or individuals. These are worth monitoring for further information. You can learn more here.

Some states offer state-level programs specifically supporting the development of solar and other renewable energy technologies. In Montana, we have the Alternative Energy Revolving Loan Program (AERLP). This program was established by the Montana Legislature in 2001 and provides zero-down, low-interest loans of up to $40,000 to individuals, small businesses, nonprofit organizations, and government entities in order to increase investments in alternative energy systems and energy conservation measures in Montana. The program, managed by the Montana Department of Environmental Quality’s Energy Office, has financed more than 500 renewable energy installations across the state since its first loan in 2003. States also often offer tax incentives or rebates for renewable energy installations, which are great options to help lower the up-front cost of the installation. Reach out to your state energy office or solar advocacy group to ask what options your state offers.

Property Assessed Clean Energy (PACE) programs are becoming more popular across the country. PACE programs offer the opportunity to finance the up-front cost of an installation and then pay back that cost as an assessment on the property taxes of the building or location where the system was installed. One of the greatest benefits is that the cost of the system is tied to the location, making for a simpler process if there is a change in ownership. The nuances of these programs are important and will vary from state to state. For example, the recently adopted PACE program in Montana is only available to commercial entities.

Your utility may offer discounts, rebates, or other incentives that can help with the cost of renewable energy and/or energy efficiency technologies. In Montana, we have the Universal Systems Benefits (USB) program. Our largest investor-owned utility, NorthWestern Energy, administers this state-authorized incentive program through its “E+ Renewable Energy Program” to qualifying non-profit organizations, government agencies, and schools in NorthWestern Energy’s Montana service territory. Projects receiving these funds often provide civic value, including education and visible representation of renewable energy technologies to a broad audience. The Montana USB program provides grants, but other utility territories may offer programs with discounts or rebates on certain energy efficiency products. Reach out to your energy provider to ask what incentives it offers. 

Private financial institutions are beginning to offer their own renewable-energy focused products. For example, Clearwater Credit Union (based in Missoula, MT) offers two home energy loans: an unsecured, easy-access Home Solar Loan; and a Home Energy Efficiency Loan. Because it is a private institution (and not a state agency), the credit union can usually offer a decision in minutes. These options can be particularly attractive for businesses or households that already have an account with that institution.

Third-party financing is another option to consider. In this scenario, a private, third-party financer will develop a solar project on leased or purchased land or roof space. The financer provides the capital and, in doing so, is often able to take advantage of tax breaks that can lower the overall project cost. They enter into a contract with the system host (i.e., the building or land owner) who then benefits from the project by receiving the energy produced on-site. The host may pay the financer a regular payment (fixed or otherwise) related to the value of the energy delivered. At the end of the contract term, the host may also have an option to purchase the system from the financer. The crux is finding a third-party financer you are comfortable working with. These types of contracts can be technical, and the nuances are very important. If you are interested in this model, I recommend working with a legal expert to make sure you understand the terms and conditions of any agreement that you sign. Missoula County recently worked on the first third-party financed system in Montana. MREA hosted a webinar about the experience, and about third-party financing in general. A link to the recording is provided below.

A closing note on tax incentives (generally): Be sure to consult with a tax professional to ensure that these options are available to you. Unless the tax credit is specifically noted as refundable, you must have a sufficient tax liability to claim the value of the credit. For example, the Federal ITC is not currently refundable (though SEIA and other solar advocates have lobbied Congress to make it so).

As you can see, there are varied options available to help with the cost of a solar installation. However, the nuances are important and can drive the cost and savings that you will eventually realize. As you explore these different options, be sure to reach out to local solar advocates and legal and tax experts in your area with any clarifying questions.

Resources:

Federal ITC (for businesses)

Federal ITC (for residences)

USDA REAP Program

IIJA funding opportunities

MREA webinar on Third-Party Financing

Montana-specific Programs and Examples:

MREA website on financing and incentives

Alternative Energy Revolving Loan Program

Clearwater Credit Union energy loans

Northwestern Energy E+ Renewable Incentives

[1] Solar Energy Industries Association. (2022). “Solar Industry Research Data.” https://www.seia.org/solar-industry-research-data

AgriSolar News Roundup: Connecticut Agrisolar, Agrisolar Lamb Production, New Solar Farm 

2 Connecticut Solar Farms Will Also Grow Crops 

“Connecticut-based Greenskies Clean Focus is bringing farming to solar fields across Connecticut. Following the recent green light from the Connecticut Siting Council, two new Greenskies solar power and agricultural co-use projects will break ground later this year in Orange and East Windsor. The solar array in Orange will act as a distributed energy resource facility benefiting the Connecticut State Colleges and Universities (CSCU) through a virtual net metering agreement.” – Solar Power World 

Australian Solar Farm Set to Co-exist with Existing Lamb Production 

“A potential 300MW solar farm with a 600MWh battery energy storage system founded by a group of local farmers in Bungendore, New South Wales, has gained backing from the federal government’s Clean Energy Finance Corporation and investment company Octopus Australia. As the project website details, the solar farm will co-exist with existing lamb production, which will be accommodated by placing the rows of panels around six meters apart, allowing for grazing as well as for the optimal performance of the planned single-axis tracking system.” – Renew Economy 

Solar Farm in Dunfermline Could Power Roughly 7,000 Homes 

“A new solar farm in Dunfermline will have the capacity to power 7,000 homes per year if it gets the green light. Plans for the energy park with 75,000 solar panels have been lodged with Fife Council at the former Lochhead open cast mine in Wellend. The company behind the application, Dunfermline Solar Ltd, part of AMPYR Solar Europe, says the plans will be a source of new low carbon power and supports the Scottish Government’s commitment to renewable energy.” – The Courier

Watch: Teatime – Leasing for Community and Grid Scale Solar: Key Considerations While Negotiating

In this Teatime from April 21, 2022, Tom Murphy, the Director of Penn State’s Marcellus Center for Outreach and Research (MCOR), presents Leasing for Community and Grid Scale Solar – Key Consideration While Negotiating.  Tom’s current work is as an educational consultant in transitioning to clean energy including utility and community scale solar.   Teatimes are a series of educational agrivoltaic webinar presentations that are jointly run by The AgriSolar Clearinghouse and the American Solar Grazing Association.

Characterizing the Ecological Implications of Utility-Scale Solar Energy on Fallowed Farmlands

Written By: Amanda Gersoff (M.Sc. student), Dr. Seeta Sistla

Natural Resources Management and Environmental Sciences Department, Cal Poly, San Luis Obispo

Our team is studying the ecological aspects of utility-scale solar arrays set on former agricultural land whose understory is maintained by sheep grazing. By gaining a better understanding of the ecological implications associated with panel shading coupled with grazing by sheep, we hope to develop insights into agrivoltaic development that can maximize positive environmental effects while reducing negative externalities. We are currently focusing on two utility-scale solar energy sites located in San Luis Obispo County, California. At these sites, we conduct weekly monitoring to measure surface microclimatic features, soil nutrient cycling processes, and plant community composition.

Collecting soil cores at Topaz Solar Farm. Photo: Amanda Gersoff
Collecting aboveground biomass samples at Topaz Solar Farm. Photo: Amanda Gersoff

We hypothesized that the novel shading caused by the arrays will affect plant and soil dynamics, including decomposition, biomass production, plant moisture content, the timing of plant community events (like flowering duration and time to senescence) and plant nutrient content. Our work has suggested that placing arrays in arid grazing landscapes that are emblematic of the western U.S. can confer synergistic benefits for the plant community and their grazers. For example, our work has found that the plant mass beneath the array rows has high water content, greater nitrogen content (correlated with higher soil plant-available nitrogen), and lower non-digestible fiber content than areas that are grazed but outside the arrays’ direct shading influence. We are currently tracking phenological patterns of greenness and flowering time/duration in the array, to better understand if the traits we are observing correlate with an extension of the growing season for the community with the array’s shading area.

Over the next year, we will continue monitoring to gain a more comprehensive understanding of how exactly spatial heterogeneity created by panel shading influences ecological systems. At both sites, the practice of solar grazing, in which sheep are used to maintain vegetation under solar panels, has been implemented. By combining agricultural and renewable energy production, also known as agrivoltaics, multiple benefits can be realized. Utilizing rotational grazing by sheep is beneficial because it can reduce the costs of mowing and maintenance, support local shepherds, cultivate biodiversity, cycle nutrients into the soil, and decrease the risk of sparks igniting dried grasses. As utility-scale solar energy grows, it is important to look to dual-use solar for increasing efficiency and maximizing environmental benefits.

Rotational grazing by sheep at Goldtree Solar Farm. Photo: Amanda Gersoff
Patterns of phenological differences  vegetation due to shading at Topaz Solar Farm.  Photo: Amanda Gersoff
Owl’s clover (Castilleja exserta): An annual native wildflower common in the rows adjacent to panels at Topaz solar Farm. Photo: Amanda Gersoff

Energy Department Announces $8 Million for Agrivoltaic Research

The U.S. Department of Energy, Solar Energy Technologies Office has announced it award up to $8 million for agrivoltaic research through its Foundational Agrivoltaic Research for Megawatt Scale (FARMS) program. The research dollars are intended to examine how agrivoltaics can scale up to maximize land and increase farm revenue.

According to it’s funding announcement:

DOE expects to make between 4 and 6 awards under FARMS, each ranging from $1-2 million. SETO is interested in projects that partner with farmers who are pursuing climate-smart and sustainable agriculture and are considering agrivoltaics to enhance the economic efficiency and sustainability of these farms. Additionally, SETO is interested in projects that offer economic benefits to underserved communities in these farming areas.

This funding opportunity announcement (FOA) has three areas of interest:

  • Integrated agriculture-energy impact studies that investigate how agrivoltaic designs impact both agriculture production and energy production;
  • Socioeconomics of agrivoltaics research that studies how agrivoltaics can fit into existing agricultural communities and economies or enable new ones; and
  • Resources for replicable and scalable agrivoltaics that lower the barrier of entry to agrivoltaics, making it easier for interested agricultural producers and solar developers to benefit from the opportunities that agrivoltaics provides.

Letters of interest are due June 1 at 5 p.m. See the full funding announcement here.

Video Series Provides Solar Education to Farmers

It should come as no surprise that farmers are busy people. Success in farming requires hard work and long days, not to mention staying up to speed on farming practices and technologies. As renewable energy deployment on farmland becomes more common, farmers can face challenges understanding how to site and maintain these systems.

Drew Shiavone of the University of Maryland is meeting farmers where they are by providing digestible information on farm-based solar photovoltaics (PV) via 10- to 15-minute YouTube clips. The “Solar Clips” video series shows practical, step-by-step tutorials on various phases of the solar installation and maintenance process, from site assessment and shading analysis to wiring panels and replacing diodes. The series was created by Shiavone under a Sustainable Agriculture Research and Education (SARE) grant that will expand solar installations on farms in Maryland.

The grant project, led by Shiavone, is focusing on “train-the-trainer” workshops that will allow Extension agents and other agriculture service providers in the region to deliver education and training to farmers on topics such as solar PV technology basics, on-farm applications, and solar contracts and leasing options.

Along with the common “not in my backyard” mentality or concerns for the local economy, aversion to renewable energy installations is also often rooted in a lack of knowledge about the technology. Educational tools such as the Solar Clips series can help close the knowledge gap for farmers and increase support for on-farm renewable energy development. By empowering the farmer through practical solutions, agricultural production and decarbonization efforts are strengthened.

AgriSolar News Roundup: Italian Research Agreement, Rooftop Agrivoltaics, First Solar Agreement

Italian University Signs Four-Year Agrivoltaics Research Agreement

“Statkraft Italy has signed a four-year research agreement with the Department of Agro-Environmental and Territorial Sciences (DiSAAT) at the University of Bari Aldo Moro in Southern Italy. The title of the project is “Agri-photovoltaics for a sustainable future. The aim of the research activities is to deepen new approaches, methodologies, and innovative technologies in the field of electricity generation and agriculture, and to achieve the correct integration between photovoltaic systems and primary production, optimizing the yield in both fields. The solutions will be aimed at public administrations, entrepreneurs, farmers, and local communities,” – Statkraft

Rooftop Agrivoltaics Research Continues in Colorado

“While rooftop agrivoltaics is in its infancy, this vertically integrated approach to urban land use can increase resilience in urban food systems, expand renewable energy production, and decrease water consumption. The benefits associated with rooftop agrivoltaics warrant further investigation as we re-envision underutilized spaces in urban environments. Colorado State University is continuing research on rooftop agrivoltaics to analyze the growing conditions, yield, and power generation potential of these systems,” – Live Architecture Montioring

Arizona’s First Solar Closes Agreement with Silicon Ranch

“Arizona’s First Solar announced that it has come to terms on a multi-year master supply agreement with southern utility-scale solar developer, Silicon Ranch, under which First Solar will supply 4GWof advanced thin film photovoltaic modules to Silicon Ranch’s projects in the United States from 2023 to 2025. While this is not the first supply partnership to be reached between the two companies, the level of commitment dramatically expands on their prior partnership, under which First Solar has supplied modules to over 30 projects totaling more than 1GW since 2015.” – PV Magazine

Fostering Social Acceptance of Solar Through Agrivoltaic Solutions

By Alexis Pascaris

What if we shifted our perspective to view Not in My Backyard (NIMBY) syndrome as an occasion for innovation? What if we strategically integrated local community interests into a solar project, rather than grappling to override them? Luckily, embodying these ideals may not be as lofty as it seems.

Combining agriculture and solar energy production in an agrivoltaic system shows promise as a sensible method to reduce siting conflict, generate rural economic opportunity, and ultimately increase social acceptance of solar. The majority of the solar professionals interviewed in a recent study on industry perspectives about agrivoltaics discussed the great potential to leverage these systems strategically to retain local agricultural interests in project development and consequently gain receptivity in a community. Minimizing threat to existing community interests by pursuing a dual-use project provides a distinct advantage over traditional ground-mounted solar projects, which are often challenged on the basis of land conservation and farm preservation values.

But do solar energy deployment and farmland preservation have to be mutually exclusive pursuits? Can the agrivoltaic solution properly reconcile these competing interests in a way that benefits all stakeholders?

Jack’s Solar Garden. Longmont, CO. Photo: Thomas Hickey
Jack’s Solar Garden. Longmont, CO. Photo: Thomas Hickey

Let’s consider for a moment that we are at a delicate yet opportune inflection point in large-scale solar deployment. Previous case studies exemplify how the community relation component of project development has rippling consequences (both positive and negative) on our ability to sustain the build-out rate of solar. Poorly developed projects perpetuate lack of trust in developers, resistance from rural communities and ag-interest groups, as well as restrictive land use policy. Research concerned with New England’s energy transition evaluated the factors that contribute to energy project outcomes, finding that stakeholder relations is instrumental, and that social conflict is a key contributor to project failure. Collaboratively designed projects that generate co-benefits leave a legacy of community pride and positive perception about solar. The Long Island Solar Roadmap Project demonstrates how the solar development process can be enhanced through stakeholder engagement, which includes incorporating community preferences in project siting and design.

Based on precedence, the path of least resistance is clear – to meet our ambitious renewable energy targets, we must develop innovative, inclusive practices to minimize siting conflict and harmonize solar deployment goals with existing community interests. By upholding community values and agricultural interests in a solar project, agrivoltaics provide a means to enhance development practice remarkably well.

You may say I’m a dreamer, but I’m not the only one. Last spring, we surveyed two U.S. counties to investigate whether public support for solar increases when a project incorporates agricultural production. Survey respondents indicated that they would be more likely to support solar development in their community if it combined energy and agriculture. The study further investigated the importance of a range of planning and development factors – land type, distribution of project benefits, and impacts on local interests were determined to be of highest priority to community members when considering their support for a solar project. These findings imply the importance of community engagement in the planning process and suggest that a solar project designed to maintain the agricultural function of land is likely to experience receptivity rather than resistance – a valuable co-benefit of the agrivoltaic approach.

Thinking long-term about our commitments to sustain the deployment rate of solar not only includes optimizing economic and technical efficiency but fostering social acceptance as well. “Social acceptance” can either be our mighty ally, or a formidable opponent to our solar development pursuits. The agrivoltaic solution illuminates a pathway to alleviate siting conflict, generate localized benefits, and contribute to a legacy of solar projects everyone is proud of.

What if all future solar systems served a greater purpose than electricity generation? Would you be more likely to support them in your backyard?

Examining Existing Policy to Inform a Comprehensive Legal Framework for Agrivoltaics in the U.S.

This study applies Legal Framework Analysis to identify barriers and opportunities for a comprehensive legal infrastructure to enable agrivoltaics in the U.S. e State of Massachusetts is used as a case study to understand what elements of their regulatory regime contribute to their novel agrivoltaic policy program, while also considering the surrounding federal and local government dynamics in which this state program is embedded.

The case study shows that a comprehensive legal framework for agrivoltaics should arguably include a combination of federal and state energy financing mechanisms coupled with favorable state and local land use policies. Specifically, a state-level feed-in tariff and local government allowances for mixed land use between solar and agriculture will be the key features of an enabling legal framework.

Legal-Framework-Manuscript_PascarisDownload