Solar Fuels Folly River Farms’ Financial and Environmental Goals

Keywords: sustainability

Under Canada’s dairy supply management system, the principal way for a dairy farm to boost profitability is to slash costs. But sustained cost-cutting efforts require an investment that cuts into an operation’s already thin margins. That’s why recouping the cost quickly is important, so that operations aren’t feeling the burn for an extended period. One way to achieve that is through an investment that offers the potential for a quick payback while reducing energy costs in perpetuity and stabilizing once variable costs in your operation.

Lauchie MacEachern and Jolene MacEeachern, co-owners of Folly River Farms, figured out how to do this. The MacEacherns purchased the farm, located just outside Truro, Nova Scotia, in 2013. It was Jolene who’d long wanted to install solar panels, understanding that the technology could realize both financial and environmental benefits. So last year, the MacEacherns took the plunge and installed 296 solar panels on their 90-cow, 450-acre farm.

Thanks to various grants and subsidies, the projected return on their investment is even shorter than expected, and the benefits should last for generations to come.

“The savings in power is huge,” MacEachern said. “Dairy farms are very reliant on fossil fuels with fuel and fertilizer, and in Nova Scotia our electricity is primarily fossil-fuel based. It was important for us to try to mitigate that a little bit. Jolene really liked the thought that the sun’s up there, we might as well use it.”

While the MacEacherns had long been attracted to solar power’s benefits, they realized they needed to wait until the technology matured enough before committing to it. In particular, the battery storage requirements were simply too onerous for the farm to take on. The tipping point came when net metering systems—which allows solar users to send excess energy to the power grid, which other homes and business can use—became available in Nova Scotia.

“We take from the grid when we need power, and when we're producing extra power, it goes on the grid,” MacEachern said. “There's no need for battery storage, which just takes up a lot of room and is a major cost.”

Folly River’s system features 296 roof panels and six inverters, which converts DC electricity from the solar panels to AC, which is what the electrical grid uses. The only initial downside was that installation was completed last October, meaning it would be several months before the sun would be in peak position for generating power. But MacEachern has been pleased with the performance during the system’s first spring and summer months. "We keep producing more and more every month. [July] was the highest we produced. I think it'll take a year to gauge, but I'm happy so far.”

The system generates a maximum of 90 kilowatts during peak sun hours with no cloud cover. It’s designed to produce 150,000 kilowatt hours per year to replace Folly River’s power usage (the dairy barn uses about 120,000 kilowatt hours per year, and two houses on the property split the remaining 30,000 kWh). “We need to generate between 12,000-13 kWh per month on average,” MacEachern said. "In January it was 3,500 kWh and July just passes 19,500 kWh. On average we're hoping to produce the amount we need.”

Transitioning to solar power is consistent with the MacEacherns’ strategy of using technology to improve efficiency and cut costs. “In dairy farming we are limited in our cash flow,” MacEachern said. “We can only make as much money as our quota will allow, so the only way to make more money keeping the same amount of quota is to save on your costs.”

MacEachern installed LED lights in the milking barn, for example, to save energy. “We were always trying to shave here and there when we can as long as it doesn't jeopardize anything else. We won't cut corners if it's not safe or if it's not beneficial in another area. But we’re always looking to save a dollar when we can, because that’s the extra dollar in our pocket.”

Of course, it also helps to realize those savings as soon as possible. Folly Rivers’ solar power system cost $165,000. MacEachern’s initial calculation projected the system paying for itself in power savings in 10 years. A program called Efficiency Nova Scotia offered an automatic rebate that amounted to about 23% of the cost of the panels. That brought the payback period down to seven years. While the project was underway, two additional funding programs became available—a provincial cleantech grant and a federal program—which totaled about 50% of the project funding. Those sources brought the payback down to just a little more than two years.

Applying for these various programs required about 15 hours of MacEachern’s time. But it was a no-brainer in terms of shaving the investment payback time by 80%. “For 50% funding, it was probably the easiest money that I'd ever make if we were approved,” he said. "For the federal government and our provincial government, cleantech and solar power are really big right now. They really want to fund it, so I think there are opportunities for a lot of businesses.”

MacEachern typically had to set aside a few thousand dollars every other month for the power bill; he hasn’t had to this summer. Given that volatility in fuel, fertilizer and other commodity prices are likely to continue as geopolitical issues impact supply chains, reducing energy costs can help offset those impacts over the long term.

Beyond the financial aspect, Folly Rivers’ system is designed to reduce its greenhouse gas emissions by 93 metric tons per year. It’s all part of the MacEacherns’ overarching philosophy of how they treat the environment. After all, the land will need to be productive long after the MacEacherns have stopped farming. He compares taking care of the land to taking care of his farm’s cattle herd.

“A happy cow is a productive cow,” he said. “Productive cattle make more milk, and they cost less to make that milk. So, you save money and save the cattle. Your land is no different. The better care you take of it, it'll treat you better as well. It'll produce higher yields and it'll be there longer. If you want to run the ground down and let everything go, you're not going to be successful, let alone the next generation. Looking after the land is key to producing good crops and looking after the environment.”