MEDINA, Ohio — Begun in 1858, Richardson Farms is in its sixth generation. The family grows row crops, fruits and vegetables and has greenhouses.

Before they installed solar panels the family’s electric bill had been $900 a month. Their last bill was about $100, said Bill Richardson.

“We put in a 23-kilowatt system,” he said. “We thought now was the time to make the investment because electric rates are going to keep going up. It will take a few years until the system is profitable.

“The solar panels are guaranteed for 25 years. Even on cloudy days they make some power. There is a screen on the inverters. You can push a button and it will tell what kind of energy it has made for the day.”

The 2009 USDA On-Farm Renewable Energy Production Survey estimated 155 Ohio farms have installed solar systems to generate their own electricity. In response to this, a team of Ohio State University extension educators is developing materials to provide families like the Richardsons with additional information for on-farm solar applications. “Solar energy is a development trend that started to pop up last year specifically on farms; a lot of development is taking place in this sector,” said Eric Romich, OSU assistant professor and extension field specialist for energy development.

An on-farm solar system, however, does not make sense on every farm, he said. Farmers have to look at what they’re paying per kilowatt hour for electricity: If they’re paying 3 cents, then solar is not a good investment.

“One of the benefits of solar is once you get it installed the maintenance costs are very minimal – the field source is free,” Romich pointed out. “That is the pro; the con is, it is a significant upfront capital investment.”

While the pricing trends for solar have been dropping at an aggressive rate, there still need to be some financial tools present for it to make sense, Romich said. The first cornerstone he would look at is the 30 percent federal solar Investment Tax Credit (ITC); however, that money is not available until after the system is installed.

The next is a Solar Renewable Energy Credit (SREC). SREC is a tool to support renewable energy portfolio standards and renewable energy development. SREC agreements can be tricky and are in a state of flux.

Romich recommended having an accountant or broker look at the SREC agreement before signing it.

USDA Rural Energy for America Program (REAP) is another financial tool, Romich said. REAP can cover 25 percent of the project, not to exceed $500,000 – and most systems are not in that range.

Plus, farmers can depreciate a solar system on their income tax and they can use net metering.

“If you have an on-site solar electric system that is generating, regardless of when you’re using or producing energy, you are only billed for that net difference in the billing cycle,” he explained. “Your system is interconnected to the local distribution grid. You need to make sure everything is done in a safe manner.”

Another final step is informing the local fire and rescue squad you have a solar system. If there is a fire, whatever the cause, they need to know “what is that thing on your roof,” Romich said.

For more information and fact sheets, visit www.go.osu.edu/farmenergy