Solar and Renewable Energy on Farms

Resources for Massachusetts farmers exploring solar and renewable energy options, including the USDA Rural Energy for America Program (REAP), the state SMART solar incentive, and dual-use (agrivoltaic) systems that allow farming to continue beneath solar panels. 

USDA REAP

The Rural Energy for America Program provides grants and guaranteed loans for renewable energy systems including solar, wind, and other technologies on farms and in rural small businesses.

Eligibility

Agricultural producers must derive at least 50% of gross income from agricultural operations to qualify as an agricultural producer. Rural small businesses have separate eligibility requirements. Projects must also be located in eligible rural areas (Use USDA’s eligibility tool to confirm your address.).

Funding

• Grants: Typically up to 25% of eligible project costs, with certain cases eligible for a higher share (up to 50%). (maximum $1 million for renewable energy)
• Guaranteed Loans: Up to 75% of eligible project costs (FY 2025 loans received an 80% guarantee)
• Grant and loan packages can be combined

REAP grants can be stacked with SMART incentives and the federal Investment Tax Credit for solar projects. Work with a developer and tax advisor to understand how incentives interact for your situation.

→ REAP Program Details (USDA)

Massachusetts SMART 3.0 Program

The Solar Massachusetts Renewable Target (SMART) program is Massachusetts' primary solar incentive. SMART 3.0 launched in October 2025 with a redesigned structure.

How SMART 3.0 Works

Annual Capacity Blocks: Unlike previous versions of SMART, the new program allocates capacity annually. Each year, DOER sets the total available capacity and distributes it among utility companies based on their share of statewide electric load. Program Year 2025 (October 15 – December 31, 2025) has 900 MW AC of capped capacity; Program Year 2026 has 450 MW of capped capacity.

Large solar projects draw from a limited annual “pool.” When the pool fills up, new capped projects generally wait for the next program year. DOER is not imposing a cap on smaller solar projects (Systems ≤25 kW AC and "Behind-the-meter systems" >25 kW and ≤250 kW AC) and are eligible for funding without worrying about the capped pool filling.

20-Year Incentive Payments: Qualifying systems receive per-kWh incentive payments for 20 years. The rate is fixed at the time your system qualifies and stays the same for the full term.

Base Rates Plus Adders: Your total incentive combines a base compensation rate (based on system size) with additional "adders" for things like building-mounted installation, dual-use agriculture (ASTGU), community solar, and energy storage.

Small vs. Large Systems

Systems 25 kW AC or less (typical for many farm rooftops) receive a flat incentive rate and are not subject to annual capacity limits. These projects can apply anytime.

Larger systems count against the annual capacity block. Applications are accepted at the start of each program year, with initial allocation based on when you applied for interconnection with your utility. Behind-the-meter systems between 25 kW and 250 kW are also exempt from capacity limits. “Behind-the-meter” means the solar installation is wired on your side of the electric meter to offset your farm’s own electricity use first (instead of being built mainly to sell power to the grid).

→ SMART 3.0 Program Details (DOER)
→ SMART Program Year 2025 Annual Report

Types of Solar Installations

Building-Mounted: Panels installed on barns, farmhouses, greenhouses, or other structures. Lowest land-use impact; favorable incentive rates under SMART.

Canopy: Elevated arrays over parking, equipment storage, or walkways. SMART 3.0 offers enhanced incentives for canopy installations.

Ground-Mounted: Traditional arrays on open land. Often most cost-effective for large installations, but removes land from production.

Dual-Use (Agrivoltaic): Elevated arrays designed so farming continues beneath. Qualifying systems, called Agricultural Solar Tariff Generation Units (ASTGUs), receive additional SMART incentives.

Dual-Use Solar (ASTGU) Requirements

To qualify for the ASTGU adder under SMART 3.0, dual-use projects must meet specific design requirements:

Growing Season Hours: 9 AM–6 PM (April–September); 10 AM–5 PM (March and October).

Eligible Land

• Land enrolled in Chapter 61A (current or within past 5 years)
• Important Agricultural Farmland (prime, unique, or statewide importance soils)
• Fallow farmland (not cultivated for 1–5 years)
• Newly created farmland (with soil testing and demonstrated viability)

Agricultural Plan

All ASTGU applications require a detailed agricultural plan describing crops or livestock, equipment needs, expected productivity, and management practices. If transitioning more than 10 acres to grazing or hay production (from previous crop production), additional documentation demonstrating agricultural viability may be required.

ASTGU Application Review

Before submitting an ASTGU Pre-Determination Application to DOER, you must consult with UMass Extension. Our staff jointly review draft applications and provide feedback on agricultural plans.

To start the review process, contact Mary Kraus at mlkraus[at]umass[dot]edu (mlkraus[at]umass[dot]edu) or (413) 545-8514.

Annual Reporting

ASTGU owners submit annual reports by February 1 documenting yields, grazing activities, and operational changes. Failure to maintain productive agriculture or submit reports may result in loss of the ASTGU incentive.

What Works Under Solar Panels

Sheep and Poultry: Sheep grazing is well-established at solar sites, they benefit from shade, don't damage equipment, and manage vegetation. Poultry also do well. Larger animals require reinforced racking; goats and pigs may interfere with wiring.

Hay and Pasture: Shading reduces yields, but shade-tolerant species (orchardgrass, white clover) maintain reasonable productivity.

Vegetables: Leafy greens, brassicas, and some herbs tolerate partial shade. Sun-loving crops should be planted between panel rows.

Fruit: Most fruit crops need full sun. Currants and gooseberries are more tolerant. Start small to observe actual impacts.

Operational Considerations

• Design for current and future equipment clearance
• Plan for soil compaction remediation after construction
• Expect increased humidity and disease pressure under panels
• Areas under panels receive less rainfall, plan irrigation accordingly
• Budget for weed management around posts and racking

Getting Started

1. Clarify your goals: Reduce electricity costs, generate income, or both? This affects system sizing and ownership decisions.
2. Check your land status: Chapter 61A enrollment or Important Agricultural Farmland soils affect which incentives apply.
3. Explore interconnection: Large systems need three-phase power with available hosting capacity. Check utility maps early.
4. Talk to developers: Get proposals from multiple companies to compare approaches and economics.
5. For dual-use: Contact Mary Kraus early to get feedback on your agricultural plan before finalizing system design.

Additional Resources

State and Federal

• SMART 3.0 Program Details - DOER's official program page
• SMART Program Year 2025 Annual Report - Capacity blocks, rates, and set-asides
• USDA REAP Program - Federal renewable energy grants and loans

CEE Fact Sheets

• Location Considerations for Ground-Mounted Solar Photovoltaic Arrays
• Legal and Financial Considerations for Solar PV Arrays
• Contract Negotiations for Solar PV Facility Agreements
• Dual-Use: Farm Operations Considerations
• Dual-Use: Crop and Livestock Considerations

External Resources

• AgriSolar Clearinghouse - National agrivoltaic resources
• InSPIRE - NREL's low-impact solar research
• Farmer's Guide to Going Solar - U.S. Department of Energy