Minnesota is the sixth-largest dairy producer in the nation. Dale Lindquist’s farm in Hamburg, a rural town just outside of Minneapolis, was once a key player in the state’s annual production of billions of pounds of milk.

But a few years ago, Lindquist decided to sell his herd of dairy cows and switch gears. Now his farm has become somewhat of a poster child for solar energy use. And for him, it’s a retirement plan.

“We’re as big as we can get without being considered our own generator,” he said. 

Lindquist introduced solar arrays to his 144-acre farm in three phases. He installed a 20-kilowatt system first, followed by a 10-kilowatt system that included special incentives and a higher buyback rate from the electrical utility because it was made in Minnesota. For the final array, a 10.8-kilowatt system, Lindquist applied for and received a Rural Energy for America Program (REAP) grant.

The REAP grant, which pays for a portion of the installation costs of the system, is a federal grant that was most recently expanded by the Inflation Reduction Act — passed by Congress and signed into law by President Joe Biden in 2021. 

The total cost for all three systems combined was about $128,000. Lindquist said he expects to have that entire investment paid off by the end of 2024, which aligns with the timeline he anticipated when he began this journey in 2017.

It all began with selling off his cows, reinvesting that money in solar, and renting out their dairy facilities and farmland to outside operators. The renters continued the dairy operation until early 2023, when repair costs for a silo didn’t seem worth the investment. And those same renters continue to farm the land to this day.

“They’re just doing the crops now. The milking part of the operation is no longer being utilized,” Lindquist said. “That being said, we were able to capture depreciation on the cost. So, it all worked out.”

Dairies have a lot of moving parts. From milking machines to pasteurizers to chillers, dairy farms create a high demand for electricity. Once Lindquist introduced solar arrays into the operation, the farm experienced a 69% annual reduction in electricity costs. 

“We haven’t looked back since,” Lindquist said. “It’s a very good investment and we’re glad we did it.”

Lindquist’s farm no longer has an electric bill at all, and instead receives payment from the electric utility for the energy his array is producing. Depending on the array, he is receiving 8 or 18 cents per kilowatt. Over the course of an entire year, that rate adds up to several thousand dollars. In addition, the electric utility in their area provides Lindquist with annual rebates for 10 years for installing the arrays. And, the REAP grant comes with incentives that complement depreciation savings Lindquist is able to include on the farm’s tax return. 

“Not too many complaints. We put them on the roof. They’re not in the way and keep working when the sun is shining,” he said. “It’s pretty easy.”

Next, Lindquist plans to lease part of his acreage as a solar garden. He will receive compensation for the lease and the company will build and maintain the arrays. Since his kids had no interest in dairy farming, he felt like this transition to solar energy would be a good use of his farmland for the future.

“The solar garden site will almost be a little frosting on the cake, and we keep this for the next generation basically. We’re in a situation where we had a successful dairy operation and quit on our terms and we’re good now,” he said. “Everything is aligned here with what we got going on and we’re sitting fine.”

The Inflation Reduction Act (IRA), passed by the 117th Congress and signed by President Joe Biden, is a piece of federal legislation that aims to reduce inflation by lowering the cost of prescription medications, investing in domestic energy production, and promoting clean energy, among other objectives.