DUBOIS, Ind. – An Indiana turkey farmer will be gobbling up savings on his utility bill from a solar energy system paid for with help from USDA.

Stephen Sander said he wouldn’t have considered going solar if not for the incentive program, which paid half of his cost. He also received a 30 percent tax credit from USDA on his out-of-pocket expenses.

“It was a very lucrative offer I thought,” he said.

Sander, owner of Tip Top Turkey Farm in Dubois County, received some of the $1.2 million awarded recently for five renewable energy projects across the state.

The funding is through the Rural Energy for America Program (REAP), aimed at lowering energy costs, generating new income and creating jobs for agricultural producers and rural small businesses.

“We are demonstrating Indiana’s commitment to building energy efficient communities in rural areas,” said Dr. Terry Goodin, the Indiana state director for USDA Rural Development.

Sander, who has raised turkeys for more than 30 years, estimated he could save close to $10,000 in his annual utility costs by using energy from the sun to power fans, lights and other electrical needs of his operation. He expects to recover his investment from the savings in four to five years.

Without the financial incentives, Sander said, “I never would have thought about doing it. I didn’t think it would be worth the effort.”

Sander raises about 20,000 turkeys in his three buildings every quarter for Perdue Farms. The birds then make the 45-minute trip to processing plants at Washington in the southwest part of the state.

Installation of his 120 solar panels is nearly completed.

If the system produces more than what he needs, Sander will be paid for the surplus energy that will enter the grid for use by utility customers. He will have to buy some electricity if his demand for power exceeds what’s produced by the solar panels.

A poultry farm owned by Karl Bontrager in LaGrange was the only other agricultural operation in Indiana sharing in the funding.

According to USDA, Bontrager is projected to save just over $4,000 a year on the electrical costs of his poultry operation in the northeast part of the state from a solar system equipped with a battery back-up for use during any power outages.

The energy he produces is enough to power three average sized homes, according to USDA.

Nationwide, close to 700 renewable energy projects are receiving $145 million in assistance through REAP grants and loans from the latest quarterly allocation of funds. 

According to USDA, applications for funding under the REAP program this year continue to be accepted through Sept. 30 on future renewable energy projects.

“By investing in clean energy, we are not only protecting our environment but also creating new economic opportunities for our state. It’s a win, win situation for everyone,” Goodin said.

According to USDA, the funding is made possible, in part, by President Joe Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combatting climate change.

From 2018-22, slightly more than $2 billion has been allocated nationwide under REAP with about one-third of those dollars going to North Carolina, according to USDA. In comparison, Kentucky during those years received over $55 million while slightly more than $17 million went to Illinois.

Just over $12 million was awarded to Indiana; Michigan received more than $8 million while about $6 million went to Ohio. About $5.7 million was directed to Tennessee.

Currently, each applicant can receive up to $500,000 for energy efficiency projects and a maximum $1 million for renewable energy systems, according to USDA.

The federal government will pay up to 50 percent of the cost for each project.