“Calvin will have solar-powered tomatoes,” laughed Daniel Zywietz, engineer with SEK Solar. As funny as that sounds, it’s the truth.
Calvin Parker of Iola is a recipient of a United States Department of Agriculture (USDA) grant that has helped him pay for a solar panel project for his greenhouse.
The grant is part of the Rural Energy for America Program (REAP) and helps agricultural producers and rural small business owners expand their use of wind, solar, geothermal, and small hydropower energy through energy efficient improvements.
Parker’s business is reliant on his greenhouse. He grows produce for the farmer’s market each year and saw the REAP funds as an opportunity to help offset the cost of utilities for his greenhouse. The 5-kilowatt panels installed on his greenhouse will produce 6,000 to 7,000 kilowatt hours per year. That’s about $60 to $70 worth of electricity a month. The solar power will help generate fans, lights, and wells.
“The grant pays 50% of the cost of the solar panels, engineering, and installation,” explained Parker. His grant award totaled $6,912 with him paying an equal amount out-of-pocket. “Most farmers will not mess with the red tape to do the grant application,” he said. That’s where Zywietz comes in.
“I’ve got the process mapped out and halfway automated,” Zywietz said. This includes doing a site survey, asking questions about environmental storage tanks and ownership, and filling out the grant forms. “The owner only has to sign,” he said.
Small businesses and farmers are eligible for the grant. “As a farmer, you are eligible if 50% or more of your income comes from farming,” Zywietz said. “Any small business is eligible as long as it is for-profit. The grant is not work for churches, schools, or residences.” Parker does have residential solar panels as well, but they were not funded with this grant.
In the past few months, Zywietz has helped submit 25 grant applications for small businesses and farmers in the area. “I’ve got applications submitted for the pharmacy in Iola and the Sonic Drive-ins in Chanute and Iola,” he said. “I’ve got six or seven applications submitted in Chanute that include a sandwich place, an insurance agent, and a garden center.”
After the application is submitted and the grant is awarded, it typically takes four to five months to get a project completed. Parker had a much quicker turnaround of only six weeks. Zywietz noted that while the approval is quick, getting everything in place takes time. The initial step is getting approval from the USDA. Evergy then has to pre-approve the installation, which takes a couple of weeks. Then the equipment is ordered and installed. The final step is an inspection by Evergy. “The Evergy process takes more time than the USDA process,” said Zywietz.
THE FARM BILL usually allocates REAP $40 million to $50 million per year. “In the Inflation Reduction Act (IRA), they got close to a billion dollars,” in response to the COVID-19 pandemic, said Zywietz. “Last year, it was $360 million. This year, they are already at $170 million.”
Zywietz said when he approached the USDA office in Iola, he couldn’t believe no one was applying for the funds.
“They said the forms were a bit complicated and they didn’t have a marketing budget,” he explained. “I said, ‘Let me help you with that.’” And he has. In the last quarter, Daniel has done 35% of all applications in the state of Kansas. “Iowa and Minnesota have really good track records. They are sucking this money up and I’m trying to get Kansas higher up on the list,” he said.
After completing so many grant applications, Zywietz says the process has become easier. The deadline for REAP is Sept. 30. The IRA money is available for six quarters. “Technically, this is the last quarter with $350 million, and then it will go back to $50 million,” he said. “You can still file in October, but your approval chance is probably five times higher if you throw something in now.” He said that once approved, you have two years to start your project. “At the moment, just file the paperwork. Even if you’re not sure if you’re going to use it,” he said. “Reserve that money because otherwise it’s going somewhere else.”
The grant program also gives “bonus points” to areas that have been deemed as economically distressed. Chanute, Iola, and Fort Scott all count as distressed because they fall below the state average on the Distressed Communities Index. “Humboldt doesn’t, interestingly enough,” said Zywietz. “Between Monarch Cement and B&W Trailer Hitches, they’re probably just above the state average.” Chanute and Iola applicants get 15 bonus points off of 100 points. “Fifteen is a lot. That’s why the approval rates are so high,” he said.
PARKER’S solar panels will reduce both his energy costs and emissions. “This system will offset pretty much 100% of the electricity cost of the fans, lights, and the wells for the greenhouse,” Zywietz said. “For most businesses it will cover 100%. If you run a restaurant or manufacturing facility, that’s a decent chunk of money. That’s hundreds of dollars, or even thousands of dollars, per month that people can save.”
