Rising Electricity Prices cause Farmers to go Off-Grid

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Solar, Farmers, Off-grid, solar panels, bills, charges

Australian farmers face utility bill increases of 300% and US farmers face spiking charges

Australia’s farm exports have been increasing consistently for the past 6 years and agriculture contributed the most to the country’s economic growth during the last financial quarter. The Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES) said that a rise in the cash income of South Australia’s farms will be head and shoulders above the 10 year average for the region. But despite this, farmers are being faced with huge electricity bills which are becoming impossible to absorb.

The National Farmer’s Federation are calling for a transformation of the national electricity market. Currently farmers are facing tariff increases of up to 300%! This has been especially sobering for dairy farmers who are predicted to have a fall in cash income. This is due to falling prices for products such as milk.

Fiona Simson, president of the NFF, said, “We need affordable, secure and reliable and low emission electricity.” She spoke of how farmers are turning to off-grid solutions, dusting off diesel generators to avoid a “crippling overnight electricity bill”.

It is not just Australia’s farmers turning to off-grid energy.

US farmers are also beginning to show signs of a solar revolution, to avoid fees for electricity spiking. Even though the start-up costs for solar energy are still more than fossil fuel, with a combination of state incentives, a demand for energy and higher electricity prices in some states, the initial investment starts to pay off.

For the moment solar energy seems to be a supplement for activities such as water pumping and charging electric fences. Farmers in some states have been quicker on the uptake than others. For instance, a five year drought in California has meant farms having to use more electricity to pump ground water. When electricity intensive activities like this take place, it draws a high amount of energy from the local grid all in one go. This leads to a large “spiking” charge for the farmer.

Not only this, but some electricity companies like Pacific Gas and Electric charge more during day time summer hours. This is when there is more demand on the grid. Therefore, turning to solar during this time makes financial sense to avoid higher bills. Using batteries to store excess solar energy to avoid using grid electricity is also a good option for lowering bills. However, the main limitation for many farmers is the cost and storage size of the battery packs they would require. For a lot of farmers with solar power, its use stops when the sun goes down.

In some states like Washington, where electricity prices are low, solar panels are few and far between. However, as electricity prices continue to increase, this easily deploy-able green energy source is likely to become a popular solution.

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