Solar economic benefits for farmers: Cost savings, incentives and long-term gains
Agriculture is still one of the several sectors through which most countries generate economic support. Its huge rural population depends on farming for its economic sustenance. Farming, however, is a very resource-intensive activity.
Several costs are incurred in its activity, such as electricity, and water, among others, to provide intensive farming. The best of all the promising solutions to this is the use of solar power, which will help in cutting down the costs while making agricultural activity more sustainable.
Taking the sunshine for themselves, farmers can dramatically increase their economic gains from simple cost-cutting measures and direct savings to long-term security from penury and environmental protection.
Cost Savings: A Direct Benefit
Perhaps the most obvious benefit to the farmer is that it saves them money on electricity. In modern farming operations, most irrigation, processing, and storage of produce require a lot of energy. These activities often rely on grid electricity or diesel generators which are costly and easily affected by price gauging.
On the other hand, predictable and stable power generation from solar energy is also there. After the initial investment in solar panels and associated infrastructure, costs will be very low.
Only very minor maintenance is needed for solar panels that last for 25 to 30 years, promising long-term returns on investment. It may also reduce or eliminate expensive diesel fuel needed to maintain an isolated area for the farmer, thereby increasing the cost savings.
Government incentives and subsidies
The majority of the countries’ governments encourage the utilisation of solar energy through incentives and subsidies.
These are schemes to reduce capital investments associated with the installation of the solar system, which is achieved by the farmer. For instance, the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) scheme in India allows finance up to and including the installation of solar pumps and the development of grid-connected solar power plants.
The financial burden is minimized on the farmer’s pocket and at the same time, renewable energy for agricultural purposes is promoted.
Apart from subsidies, tax incentives in terms of deductions or credits on solar energy investments may be extended to farmers. This may reduce the payback period for the installations to a considerable extent. Such incentives help farmers seek opportunities to maximize their operations.
In addition to the short-term cost savings as well as the government incentives, there are also several long-term financial benefits of solar energy for the farmers.
Another significant benefit is the opportunity to feed any extra energy generated back into the grid and thus generate revenue. With most regions employing some kind of demand for surplus electricity, farmers are likely to install more solar panels than they require to use with their operation, and then sell the excess electricity to utility companies.
This not only brings stable flows of additional income but also helps distribute the revenue of farmers, and reduces reliance on crop yields and market prices.
Besides, land value may be increased by using solar energy. More people are aspiring to own properties with renewable energy facilities due to the saving of running costs and possible generation of income. This improves the resale value for a longer time, thus making long-term financial assets for both farmers and their families.
Environmental and social benefits
Solar energy provides rich economic benefits, along with valuable environmental and social benefits. Since solar energy is a green source of power, it helps reduce the amount of greenhouse gases, and it also reduces the impact of farming and agriculture as an activity on the environment. By utilizing solar power, farmers can contribute in their little ways to combating climate change.
The availability of solar energy further supports energy security in rural areas. Power outages and fluctuations in prices due to a distance from the central grids are widespread phenomena in most farming regions. This ensures that these farmers, even when far from the central power grids, have enough electricity to keep their operations running by providing a reliable independent source of power.
Conclusion
The economic benefits of solar energy to farmers are crystal clear and persuasive. Both the cost savings to farmers in electricity and possible long-term financial benefits in case of incentives by the government make it possible for the agricultural sector could experience sustainable, profit-generating means of producing energy from sun rays.
Since governments and communities realise that the use of renewable energy has implications of permanent benefits both to the farmer, the environment, and society at large, the uptake of solar power by farmers is likely to increase, bringing about permanent advantages to the farmer, the environment, and society at large.
The return on investment from solar energy should attract the interest of farmers looking to secure their financial future and to further the cause of a sustainable world.
The author is Vice President, Oorjan Cleantech