Project Traits
State: Indiana
Congressional District: IN05
Organization Type: Commercial
Partner Organization(s) Type: None or Unknown
Energy Sector: Clean Power
Energy Subsector: Solar
Project Start Year: Unknown
Project Launch Year: Unknown
Government Support Received: Federal Grant [USDA Rural Energy for America Program] for $250,000 Federal Direct Pay [Investment Tax Credit with Domestic Content Minimums] for Unknown Amount
Outcomes & Impacts
Private Investment: $375,000
Jobs Announced or Created: Unknown
People Served: Unknown
Projected Economic Impact: Unknown
Smith Family Farms is a bit different. After applying for and receiving a Rural Energy For America Program (REAP) grant, funded by the Inflation Reduction Act, the farm installed a sizable solar array in late 2023. The $250,000 grant covered about 40% of the cost of the array, which has 25 panels arranged in five rows of five, covering about an acre.
On top of the REAP grant, since the array is completely American made, Smith Family Farms is able to recover the maximum allowable tax credit — up to 40% — to further assist with recovering the cost of the investment. Projections indicate that the array will provide all the power the family will need to operate its grain elevator for the season, which generally costs about $30,000 each year.
Throughout the process of considering solar panels for the family farm, even after having panels on his family home for about a decade, Smith said he remembered the advice given to him by a former agriculture teacher.
“Don’t be the first to try something, but don’t be the last,” he said, quoting his teacher. “We think the return will be about five years, but we’re still waiting to see. We’ll know more in a few months. But, it’ll be a good ROI for us.”