As Washington scales back federal solar incentives and grants, states are stepping in—deploying community agrivoltaics to keep farms productive, clean energy flowing, and local economies afloat.

Some of the thickest hay in the meadow at Jack’s Solar Garden, in Longmont, Colorado, is on the west side under an elm tree. The tree offers shade, absorbs the brunt of afternoon sun, and keeps more moisture in the ground.

Byron Kominek, who owns the farm, sees similar benefits from the solar panels he has installed on some of the land. “What’s important is to think about the solar array as a tree canopy,” Kominek said. The solar garden includes 3,276 panels that generate 1.2 megawatts of community solar power, enough to power 300 homes.

Through his agrivoltaic system—the dual use of land for solar generation and agriculture—he’s found success growing blackberries, raspberries, asparagus, and more under the panels. While growing these crops, he’s also been able to generate and sell electricity—another boost to farm revenue.

With hotter, drier years ahead, Kominek also thinks having additional shade on farmland will be important for reducing ground temperatures and keeping water in the soil. Both will expand the lifespan of his property.

Like most farmers and farm advocates, Kominek is concerned about the loss of productive farmland across the country. He sees large-scale solar energy development that involves wiping out farms entirely as part of that problem, but he believes his farm and many others can demonstrate a different approach.

“It takes a little bit more upfront, but one can consider some of the main points around developing solar arrays that can make it safer, more accessible, and useful for farmers and ranchers for the long run,” Kominek said.

The Biden administration invested in solar through landmark climate legislation, which included additional funds for on-farm solar projects. State policies have also helped spur agrivoltaic growth.

But the Trump administration has taken steps to move federal support away from solar energy. Most recently, the U.S. Department of Agriculture (USDA) said it would no longer support solar projects that take away viable farmland. That will make it harder for rural businesses and farmers to access grants and loan guarantees that largely go to small-scale solar arrays.

In years past, farmers have gravitated toward these awards because of the energy cost benefits that can help sustain their businesses. Increasingly, though, as federal policies become less stable for solar, states and farm groups are looking to community solar projects to fill the gaps.

Trump’s Far-Reaching Changes to Rural Energy

In August, the USDA shared a press release explaining how the agency would move away from solar through changes to the Rural Energy for America Program (REAP).

First created under a different name in the 2002 Farm Bill, REAP has grown to become the primary program in the farm legislation. While other technologies once dominated, energy efficiency and solar projects are now some of the most popular.

The program currently supports solar projects that range in scale, funded through grants and loan guarantees for agricultural producers or small rural businesses.

Solar arrays can range from small-scale, like task-oriented solar for an irrigation pump, to multi-acre utility-scale projects where electricity generated can go to the grid.

It’s also a low-risk, established technology that farmers and small rural businesses have gravitated toward to stabilize energy prices. Company climate pledges and consumer demand are also pushing low-carbon products, which has similarly pushed farmers to solar.

“The benefit of solar to agriculture producers is that it provides stable energy cost, predictable energy cost, and helps them to reduce their carbon footprint, as markets increasingly demand,” said Andy Olsen, senior policy advocate at the Environmental Law and Policy Center.

A recent USDA memo sent to state Rural Development directors and obtained by Civil Eats provides more insights into how the agency plans to move REAP away from solar. Ground-mounted solar projects larger than 50 kilowatts and installed on “certified cropland” are now ineligible for REAP loan guarantees, it says. Any solar projects that have any component made in a foreign adversary country, like China, would also be ineligible.

Solar projects that fall under these size, location, and component restrictions will also be “disincentivized” for REAP grants.

From 2015 to 2025, 72 percent of REAP projects included solar, according to an analysis by the Environmental Law and Policy Center shared directly with Civil Eats. An estimated 65 percent of these solar projects were larger than 50 kW and could therefore be ineligible for loans, or “docked,” under the new parameters.

While available data does not directly include the size of projects, the center’s analysts came to this conclusion by estimating kilowatts by the cost of the project.

A separate analysis by the National Sustainable Agriculture Coalition, also shared with Civil Eats, found that relatively few—only about 150—of these projects are larger than 50 kW, mounted on the ground, and classified as an agriculture project. Many existing REAP projects involve solar arrays mounted on land adjacent to buildings or on the edge of property.

But experts point out that nearly every solar array, no matter the size or location, is likely made using components from China.

“This is farmers who are saying, ‘I want to go solar to help my farm,’ or, ‘I’m a rural small business and I want to go solar to help my business,’” said Liz Veazey, state policy campaigns director at Solar United Neighbors. “These people are not going to put a bunch of solar in the middle of their farm and impact their farm. They should be able to do whatever they want with their land.”

Rural businesses and farms look to REAP and solar as a way to stay in business by lowering or controlling their energy costs, Veazey said. These projects can also create jobs that support the broader local, rural economy. REAP loan guarantees specifically can help support utility-scale solar projects that farmers can use to sell electricity.

REAP applications are scored and get “priority points” based on criteria like energy savings, location, committed matching funds and more. These scores are factored into USDA’s selection process.

As the internal USDA memo notes, the new restrictions on solar projects will be factored into this point system. But it’s unclear how severely projects involving more than 50 kW, ground-mounted solar, projects on farmland, and systems made with components produced in China will be docked in this new system.

Depending on how much projects are docked because of the new solar parameters, it could lead to hundreds fewer systems receiving grants, Veazey said. The USDA is expected to reopen REAP applications on October 1, and she expects more information about the point system to be released then.

“Making it harder to get these grants is probably going to reduce applications for solar, [and] potentially push applications to other, maybe less practical technologies,” Veazey said.

The new REAP parameters add to a wave of “uncertainty and chaos” in the program, Veazey said. Earlier this year, USDA briefly froze REAP funding and delayed opening the latest cycle of applications. Veazey said she’s also concerned that cuts to agency staff could make it harder to process all the applications.

Meanwhile, the federal government has implemented other policies that signal a shift away from solar energy. The Inflation Reduction Act (IRA) boosted the amount REAP grants could cover to 50 percent. Developers could also stack these grants with other IRA tax credits to further lower the cost of the project.

However, under the Republican-backed One Big Beautiful Bill Act, several IRA credits for clean energy were rolled back. Specifically, the residential solar credit will go away at the end of 2025, and the solar credit for businesses that many farmers or rural businesses could have used becomes more complicated with the introduction of “foreign entity of concern” rules that clean energy developers are still seeking formal guidance on.

Already, getting a REAP grant entails a competitive but complicated application process, particularly for farmers and rural businesses that may not have technical expertise or support. Adding additional parameters, particularly around foreign components, could add red tape to the application process.

The new parameters set by the USDA are “largely killing the REAP program,” said Olsen of the Environmental Law and Policy Center.

States Consider Community Solar

As the federal policy on solar shifts, some states are increasingly exploring community solar programs that can include farms and rural businesses. Community solar arrays are often funded by private investments and subscriber payments. These are generally smaller, requiring about 50 acres, and usually capped at 5 MW of electrical capacity.

This system allows residents and small businesses to get a credit on their electricity bill that could help offset costs. Farmers who implement these projects can also directly see benefits from lower-cost power or selling electricity.

So far, 19 states have community solar programs and are exploring ways to enhance agrivoltaics, said Liz Perera, senior director of national programs and policy at Coalition for Community Solar Access (CCSA). These states are trying to bring on low-cost power quickly, and community solar is an economical way of doing this, she continued.

“As the cost of power goes up and electricity on these farms goes up, there’s going to be a lot more interest in solar on these farms,” Perera said. “That’s their way of actually dealing with that increased cost.”

With community solar projects, farmers can lease land to solar developers, earning dollars from lease payments while still harvesting crops on nearby fields, Perera said. These also bring economic benefits for the entire community.

https://civileats.com/2025/09/16/as-federal-support-for-on-farm-solar-declines-is-community-agrivoltaics-the-future/