CALMAR, Iowa — More farmers are turning to solar for their energy needs, panelists told about 100 attendees at the Farm Solar "How-To" Workshop in April, at Iowa’s Dairy Center on the campus of Northeast Iowa Community College.

"Everyone is doing it, and it is especially well-suited for farmers," said Andy Johnson, executive director of the Winneshiek Energy District.

In Winneshiek County alone, he said the state’s agriculture industry spends $38 million on energy inputs. "If we keep inputs costs down, profitability goes up. When you address efficiency and renewables together, it can make a big difference."

In fact, Winneshiek County had more residential solar photovoltaics in 2014 than any other Iowa county, he said. "It’s gone mainstream. In Washington County, this has happened in agriculture, and we may be on the cusp of it in northeast Iowa. In Washington County, almost every hog and turkey barn has solar on its roof."

But when planning solar installation, Johnson said it’s important that farmers incorporate their whole farming operation.

"Look at farm energy efficiency first," he said. "If you can cut farm energy usage by 10 to 40 percent, then the renewable energy you might want to build out can be a whole lot smaller and a whole lot more efficient, and a whole lot more cost-effective."

Modeled after various Iowa Soil and Water Conservation Districts, which are locally led but work with state and federal partners on conservation planning, the Winneshiek Energy District is a nonprofit currently working in a number of northeastern Iowa counties, Johnson added. "We do the same with energy," he said. "We work with farmers, homeowners, businesses and public entities."

Carlton Kjos, Winneshiek County cattle producer and one of the seminar panelists, installed a 28-kilowatt capacity solar array last year on one of his farms and intends to add a second array this year on another of his farms.

"Number one, I did it to save money, but I would rather use the sun to meet my energy needs than coal or natural gas," he said. "It’s cleaner, greener and renewable."

Kelly Brickley, a CPA with Hacker, Nelson & Co., P.C., of Decorah, said federal and state solar tax credits make solar panels more affordable, adding the federal government offers a 30 percent income tax credit through Dec. 31, 2016. He said the credit can be carried forward seven years if the applicant doesn’t have sufficient income to offset the credit.

In Iowa, residential solar installations receive 60 percent of the federal residential energy credit limited to $5,000, Brickley said, with farm and commercial installations receiving 60 percent of the federal energy credit limited to $20,000. He said a farm or business project with a $75,000 solar project would get a $22,500 federal and $13,500 Iowa credit. Over five years, the depreciable basis is $63,750 for the solar panels.

In Indiana, farms and homes would have about an 84 percent chance of saving money by generating electricity from solar rather than coal power, according to a benefit cost analysis conducted by Wally Tyner, Purdue University professor of agricultural economics, and graduate student Jinho Jung.

Their analysis factored in multiple economic variables over 20 years, including the maintenance and repair costs of solar panels, economic inflation, the annual loan payment from financing, Indiana’s climate and uncertainty in electricity prices.

"If you put solar energy and coal power on a level playing field, solar emerges as a clear winner," Tyner said. "Many more homes in this state would have it."

In January, construction of a 5.87 megawatt (MW) Solar Farm on the University of Illinois-Urbana campus began after university and state officials approved power purchase and land lease agreements with Phoenix Solar South Farms, LLC.

Once installed, university officials said the Solar Farm will be one of the largest on-site university arrays in the country, according to EPA statistics, producing 7.86 million kWh per year, or approximately 2 percent of the electrical demand for the Urbana campus in fiscal year 2015.

In Tennessee, the state’s largest solar power array opened on April 13, which is capable of generating 5 MW of electricity, enough to power 500 homes and offset 250 tons of coal each month. Located in Haywood County, the farm features 21,000 photovoltaic solar panels spread across more than 25 acres.