A Farmer’s Guide to Buying Solar Panels in 2026

Start Your Farm’s Solar Project This Year to Lock in Tax Savings

If you’re a farmer who’s been on the fence about installing solar panels, there is no better time to start than 2026. Recent law changes have moved up deadlines to qualify for federal solar tax incentives, making this a crucial year for your energy planning. 

At 1 Source Solar, we’re helping farmers navigate these changing regulations to make sure they have access to sustainable, affordable energy for years to come. Are you wondering where you should begin and what key factors you should consider? Here’s our complete guide to starting your farm solar project in 2026.

Funding Your Farm’s Solar Panel Project

If you’re worried about the upfront cost of a solar panel system, 2026 is the best year to start your project. Two types of federal incentives — the Federal Solar Investment Tax Credit and the USDA REAP Grant — are available to reduce your overall cost. However, both programs saw changes in 2025, making 2026 a pivotal year to apply. Here’s what you need to know about each. 

Federal Solar Investment Tax Credit Deadlines for Farmers

For years, the 30% federal solar investment tax credit has made solar panels more affordable for farmers, homeowners, businesses, and many more groups. The tax credit is based on the cost of solar panels, installation, and battery energy storage. 

But new legislation passed in 2025 is ending this tax credit much sooner than expected. Residential projects are no longer eligible for the tax credit as of Dec. 31, 2025, and the benefits will expire for farmers over the next 2-4 years. 

Here are the key deadlines you should know about for this tax credit:

• July 4, 2026: If work on your farm’s solar project begins before this date, you will have longer to complete your project. The deadline for it to be “placed in service,” or actively generating electricity, will be Dec. 31, 2030.
• Dec. 31, 2027: If work on your farm’s solar project begins after July 4, 2026, then your solar project must be actively generating electricity by this date – two years sooner. 

Learn more: What You Need to Know About the Expiring Federal Solar Investment Tax Credit 

USDA REAP Grant Updates for Farmers

Farmers installing solar may be eligible for more financial assistance through the U.S. Department of Agriculture’s Rural Energy for America Program (REAP) grant. However, this program has also seen some recent changes that narrow the types of projects that qualify. Still, it offers valuable financial assistance to some farmers. 

You could qualify for a grant of up to 25% of the cost of your solar panel installation if your project is under 50kW in size. Projects larger than 50kW no longer qualify for the program. Applying in 2026 will ensure your project is eligible to receive that assistance. For more information on this grant opportunity and how to apply, talk with the solar experts at 1 Source Solar. 

Learn more: A Guide to Federal & State Solar Incentives

Planning Your Agricultural Solar Project

Once you have decided on funding, there are several key decisions you will need to make about your farm solar project. Here are some of the main questions we see farmers face. 

What Type of Solar Panel Company Should You Work With?

The first major step in going solar is choosing the installer you will work with. This step is critical to make sure you get a high-quality system. We recommend hiring an engineering, procurement, and construction (EPC) firm like 1 Source Solar. Unlike sales-focused companies, this type of installer will help you plan the best solar panel layout, source the equipment, and install it properly.

Learn more: How to Choose the Right Solar Installer 

Are Rooftop or Ground-Mounted Panels Right for You?

As a farmer, you want to make sure you optimize your land for the best use. You may set aside a portion of your land for solar energy or want to save space by mounting panels on the roof of your buildings. 

Rooftop solar panels are the best way to save space on the ground and are often less expensive. However, they offer less flexibility for positioning and require a roof that’s in good condition.

Ground-mounted solar panels may be more expensive, but they offer more flexibility to better position them at the best angle. They are also easier to clean and maintain. 

Learn more: Will Ground-Mounted or Roof-Mounted Solar Panels Work Better for Me?

What Is Agrivoltaics & Is It Right for Your Farm?

When you’re deciding between ground- and roof-mounted panels, a third option is agrivoltaics. Also known as agrisolar, this increasingly popular farm solar panel system installs panels on land that’s in use for another purpose, such as grazing or crop production. The panels are often raised up higher to allow crops to be planted underneath or installed between rows to maximize the shared space. 

Learn more: Is It Time to Explore Agrivoltaics? A Growing Solution for Solar Energy on Farms

See How We’ve Helped Farmers Save Across the Midwest

The 1 Source Solar team has been a trusted solar panel installer for farmers across the Midwest over the past several years. Here are some of the ways we’ve been helping farmers meet their energy needs while qualifying for government incentives. 

BTE Pork in St. James, Minnesota

We worked with BTE Pork Hog in Minnesota to install 168 ground-mounted solar modules that will create 67.2 kW of energy. The solar panel system will 100% offset the pork operation’s energy needs. This project qualified for the 30% federal tax credit, as well as bonus depreciation, giving it a 6½-year payback period.  

Kerns Farm in Mallard, Iowa

The 1 Source Solar team installed 72 ground-mounted solar modules at Kerns Farm in Mallard, Iowa. These modules will create 27.72 kW of energy, offsetting the farm’s full energy consumption. This project qualified for the 30% federal tax credit. 

Curtain Hog Building in Algona, Iowa

We installed 136 ground-mounted solar panels at this hog confinement building in Algona to create 51kW of energy. The project qualified for a REAP grant award, which shortened the estimated payback period from 4½ years to just 1 year. Following the grant payback period, the project will have a nearly 110% return on investment.  

Secure Your Farm’s Energy Future. Talk With 1 Source Solar Today

Don’t miss out on the chance to lock in energy cost savings that will boost your profitability for years to come. Contact 1 Source Solar today to set up a free consultation where we’ll help you decide what type of solar project is right for you.