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Renewable energy has come of age. Solar photo voltaic systems may be less expensive than public utility electricity.

John Vogel, Editor, American Agriculturist

May 18, 2017

2 Min Read
POWER PANELS: There’s an economic reason why solar PV panels are popping up on farms. The sun is a cost-competitive, unending renewable resource.

When the power goes out, you crank up that older tractor, hook up your PTO-powered generator and plug in your house or barn. But what if you could totally unhook your home, maybe your farm, from the utility grid?

It’s time to seriously consider plugging at least your home into a solar photovoltaic system, suggests Ed Johnstonbaugh, Extension educator for Penn State University. Then you can use your utility’s electrical power on an “as needed” basis.

Depending on your local utility rates, “the cost of installing and owning a grid-connected PV system may be at ‘parity’ — or even below,” he adds. Parity means the cost of buying electricity from the utility is equal to the PV investment over the time you’re paying for it. Once the investment has been paid off through avoided purchases from the utility plus the sale of renewable energy credits, your system provides electricity — fueled by free-of-charge sunlight.

Based on U.S. Department of Energy cost analyses, solar electricity costs for residential use have dropped from more than 18 cents per kilowatt-hour in 2009 to just under 6 cents in 2017, he says. That assumes a 30-year life expectancy. His local electricity rate was 11 cents per kWh.

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CONTROL SPIN-SPEED: If it’s metering utility electrical usage, solar PV can slow it substantially; If metering harnesses sun energy, your electric savings will spin faster.

Most solar panels are guaranteed for 25 years, so 30 years isn’t out of the ballpark. The loan paybacks can be in as little as five years.

Learn more crucial details about installing photovoltaics on Scott Clewell’s Potts Grove, Pa., home and farm  by reading “Where solar payback comes from.” Johnstonbaugh helped Clewell plan systems for his home and farm.

Tech and rate changes happening
As the number of “full load” customers decline, the burden of keeping the lights on for everyone else will fall on an ever-smaller customer pool. That’s one reason utility companies have begun installing smart meters, notes Johnstonbaugh.

That enables basing rates on kilowatt-hours used, and on rates that vary for when they’re used. It also may fuel extra incentives for taking part of your electrical needs off-grid with solar.

Solar power has to be stored in batteries, then converted from direct current to alternating current. Growth of the solar PV industry has spurred research and development of storage systems. One cutting-edge system, contends Johnstonbaugh, is Tesla’s ground-breaking Powerwall.

Check out Penton Ag’s 2015 story on this electrical storage system at “Power up a Tesla and flip off the grid.” Today’s Powerwall has substantially larger capacity. Learn more about it and other systems at storage batteries.

About the Author(s)

John Vogel

Editor, American Agriculturist

For more than 38 years, John Vogel has been a Farm Progress editor writing for farmers from the Dakota prairies to the Eastern shores. Since 1985, he's been the editor of American Agriculturist – successor of three other Northeast magazines.

Raised on a grain and beef farm, he double-majored in Animal Science and Ag Journalism at Iowa State. His passion for helping farmers and farm management skills led to his family farm's first 209-bushel corn yield average in 1989.

John's personal and professional missions are an integral part of American Agriculturist's mission: To anticipate and explore tomorrow's farming needs and encourage positive change to keep family, profit and pride in farming.

John co-founded Pennsylvania Farm Link, a non-profit dedicated to helping young farmers start farming. It was responsible for creating three innovative state-supported low-interest loan programs and two "Farms for the Future" conferences.

His publications have received countless awards, including the 2000 Folio "Gold Award" for editorial excellence, the 2001 and 2008 National Association of Ag Journalists' Mackiewicz Award, several American Agricultural Editors' "Oscars" plus many ag media awards from the New York State Agricultural Society.

Vogel is a three-time winner of the Northeast Farm Communicators' Farm Communicator of the Year award. He's a National 4-H Foundation Distinguished Alumni and an honorary member of Alpha Zeta, and board member of Christian Farmers Outreach.

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