Grainswest - Tech 2026

Tech 2026 grainswest.com 27 “I knew there was a solid business case for generating our own electricity to run the irrigation pumps, and after a thorough economic analysis with the installation company, the investment pencilled out.” —Kevin Auch electricity has increased 10 per cent since then, and we believe this is the right time now,” he said. Each array is designed to power a high demand area of the farm operation and generate between 50,000 and 55,000 kilowatt-hours (kWh) annually with an expected return on investment of five to six years across all three systems. “Solar arrays are ideal for grain farmers who rely on irrigation or livestock operations with enough electricity demand to offset the costs,” said Braden Schroeder, owner of Badlands Electric in Brooks. Schroeder managed the installation at Saddleridge Farming and worked closely with Retzlaff throughout the planning process. Once completed, the three arrays will offset electricity use across several parts of the operation. One system will offset power consumption at three yard sites that include shops, a farmhouse, an incubator for the leafcutter bees and aeration fans for grain storage. Another will supply electricity for nine irrigation pivots, while the third will service a feedlot and an additional irrigation pivot. While Retzlaff expects the solar installations to create a new revenue stream, the projected return will come from two sources: lower electricity bills and income generated by selling excess power back to the grid. According to his projections, each array is expected to reduce the farm’s annual electricity cost by about $5,100 while generating an additional $6,000 through power exports. Combined, these arrays are expected to generate approximately $11,000 each per year, for a total of more than $30,000 annually that will be added to the farm’s bottom line. AN INVESTMENT PENCILS OUT Three years ago, Carmangay area grain farmer Kevin Auch installed a solar array capable of producing 100 kW, enough to power one of his irrigation pumps. Like Retzlaff, he had considered solar nearly a decade earlier. At the time, the projected payback period of nearly 11 years was too long to justify the investment. “In order to invest, I need to be able to pay back the cost of the solar array in a reasonable length of time,” said Auch. He noted the system cost about $250,000 to install. “Now, I expect the solar system to return my investment in about five years, and I’m comfortable with that.” Auch described the installation process as smooth, and his financial projections have largely held steady. In fact, he adds that combining solar with other water-saving production practices, including no-till seeding, stripper headers and crop rotation, has further improved water-use efficiency, reduced costs and generated enough power that he hasn’t paid an electricity bill in several years. As president of Auch Farms, he manages more than 5,000 acres of dryland and irrigated crops. He grows canola, barley, durum wheat, flax and spring wheat. He considered an investment in solar power generation after his neighbour installed a solar array. “I knew there was a solid business case for generating our own electricity to run the irrigation pumps, and after a thorough economic analysis with the installation company, the investment pencilled out.” The array is located close to three irrigation pumps that each run two pivots and supplies all the power required, with additional electricity exported to the grid for income. Export rates in Alberta vary by season, with higher summer rates and lower winter rates, and are set by utilities or retailers under regulation from the Alberta Utilities Commission. Export rates are $0.35 per kWh for the summer peak season (March to October) and are $0.0895 per kWh during the winter off- season (November to February). This seasonal rate structure works in Auch’s favour. His current service provider has given him the choice of lower rates in the summer when his electricity demand is the highest. While his solar system powers his irrigation pivots during the summer months, it also produces enough surplus electricity to generate an estimated $10,000 in export revenue annually. Combined with reduced electricity purchases, his solar array delivers roughly $50,000 to $60,000 in annual savings. “If I can take $60,000 a year out of my farm expenses today, and knowing electricity costs are only going to rise, that’s a pretty big win for me,” said Auch. Beyond improved cashflow and savings, Auch also pointed to tax credits and depreciation as part of his initial economic consideration. While a solar array declines in value over time, he views it as a long-term, income-generating asset with an expected lifespan of 25 to 30 years. “Solar arrays are a depreciating asset on the farm that will be worth less every year on paper, but as long as they work, they are really a valuable asset that generates income, too,” he said.