Montana rancher cuts costs and helps bottom line by making energy from the sun
Funding from USDA’s Rural Energy for America Program, Inflation Reduction Act expands access to program
Bryce Oates, February 19th 2024
Montana rancher Rex Reilly is used to dealing with challenges on his family’s multigenerational cow-calf operation near Stanford in the center of the state. From difficult market conditions to dealing with drought, Reilly and his family are working hard to make sure that their ranch — and the agricultural community they live in — continues to thrive and contribute locally for years to come.
Recently, Reilly made a decision to reach this goal which dramatically cut energy costs: installing a solar array to power his family’s farming operation.
“The way I look at it, installing solar is a big investment in our ranch’s future,” Reilly said. “Our monthly electric bill used to be between $55 and $100 a month depending on our usage, based somewhat on whether it’s winter and we have to plug in our tractors. Well, now our electric bill is $4 per month so we’re pretty tickled about that.”
Those savings give Reilly the opportunity to invest in more fencing, pasture improvements, and fuel.
Reilly first got interested in solar power for his ranch through his work with Northern Plains Resource Council, a grassroots conservation and family agriculture organization. Northern Plains has several affiliated organizations across the state - similar to local chapters - including Central Montana Resource Council (CMRC). CMRC organized Solarize Central Montana, a series of trainings and workshops for community members from Fergus and Judith Basin Counties to help others realize savings through solar energy.
“I was just kind of fascinated that we could get all our power from a few panels on our garage,” Reilly said.
Reilly selected Bozeman Green Build as his solar installer. They helped him to access federal funding through the U.S. Department of Agriculture’s Rural Energy for America Program (REAP). REAP helps farmers and rural small businesses like Reilly Ranch save money through clean energy systems and energy efficiency projects. Congress passed the Inflation Reduction Act in 2022, providing a huge boost for REAP and delivering larger grants to fund thousands of projects that help cut energy costs all across rural America.
Reilly said the installation company helped him sort the REAP paperwork out.
“It was interesting because, as a farmer you go into the FSA (Farm Service Agency) office and sign your name and they send you money,” Reilly said. “The REAP grant was harder than that.”
Despite the upfront challenges, Reilly found the process beneficial enough to consider another REAP application to install solar on his family’s other ranch in Glendive.
Reilly said that he sees real potential in solar power generation for more ranches in his region, but right now few of his neighbors are considering solar. He hopes more workshops and trainings focused on REAP could help to fill the information gaps.
“We had an event with Northern Plains here on the farm to talk about solar, and 30 people showed up,” Reilly said. “I didn’t really know the people who showed up, but it was great that there was interest.”
Reilly said that solar installation costs are down now, “more like $15,000 than the $25,000 I paid originally.”
“That's not bad for an investment in your ranch that cuts your power bill to almost nothing,” said Reilly, who originally received a REAP grant for around $5,000.
“Plus, we can feel good that we're getting our power from the sun, which is interesting,” Reilly said. “So when you put that all together with the REAP grant, I’d just ask them why not do it?”
The Inflation Reduction Act (IRA) was an incentive package passed by the 117th U.S. Congress designed to reduce inflation, reduce drug prices, reduce climate emissions, and fund clean energy production. The IRA was signed into law in August 2022 by President Joe Biden. The legislation included a significant boost in funding and availability of REAP grants for farmers and rural small businesses.
