Taking prime farmland out of production to house solar panels to produce electricity is one thing. Erecting solar panels on odd parcels of land near barns is something quite different. David Hardin, Avon, Ind., figured out a few years ago that placing solar panels on small areas that required mowing all summer made sense. He acted on what he learned. Today, those acres produce electricity and are another source of revenue for the farm operation.

“We became interested in 2019 because we knew there were federal tax credits and grant programs at the time for doing that type of thing,” Hardin explains. He and his wife, Danielle, farm with his parents, John Jr. and Vicki Hardin. Besides raising grain crops, they operate a large farrow-to-finish swine operation. The farm itself is in rural Hendricks County near Danville.

The local rural electric management corporation (REMC) was cooperative, so Hardin pursued the project. They installed four separate arrays of solar panels. Each one was installed on land that wasn’t being farmed. Instead, most of it was in grass and required mowing. Most of the areas where the solar panels sit today are odd-shaped. Each array individually is relatively small.

Looking at economics

One drawback to solar as an energy source to capture sunlight and produce electricity for local use is that it requires a substantial upfront investment to install panels and other necessary equipment. Even with the help of grants and tax credits, the investment was still sizable, Hardin says.

“I figured how long it would take to recover our investment, and it still seemed like a reasonable investment based on the estimates for electricity production provided by the REMC,” Hardin says. “We’ve got a few years to go yet before we’re in the black, but it’s turning out pretty much as expected. It’s on track to be profitable.”

Three of the four solar panel arrays on Hardin’s farm produce electricity that powers livestock confinement barns. Not all arrays are at the main farmstead; some are located elsewhere near livestock buildings. One of the four solar panel arrays produces electricity that helps power the grain center at the farmstead.

The farm operation doesn’t receive a check from the REMC for electricity produced, Hardin explains. Instead, the REMC tracks production and usage of electricity on the farm and credits the operation for electricity produced by solar panel arrays. That amount comes off the farm’s utility bill.

Some of the tax credits and grant programs that Hardin relied on to help defray initial installation costs have phased out since then. However, with the new focus on green energy and recent climate legislation, it’s possible that tax credits, grant programs or both could return. The best advice is to check with your local REMC or electric utility company to learn what incentives might be available to install solar installations. Some livestock producers have installed solar panels on the roofs of large confinement livestock buildings. Your local REMC or utility company should also be able to provide information on this option.

Hardin was named an Indiana Prairie Farmer/Purdue University College of Agriculture Master Farmer in 2022. His father, John Jr., earned the honor in 1984.