Finding funding for energy efficiency improvements

Two Federal programs are available to assist growers with funding for production facilities and reduced energy. Both programs received extended funding in the 2014 Farm Bill and address priority natural resource concerns and help growers meet environmental regulations.

The Environmental Quality Incentives Program (EQIP), administered by the USDA Natural Resources Conservation Service (NRCS), enables growers to identify ways to conserve energy in greenhouses by developing an Agricultural Energy Management Plan. The plan develops after an on-site energy audit, reviews of existing conservation measures, and makes recommendations for new or improved practices and develops a payback for the different improvements. The practices that are covered, and the payment rates, are established by the state NRCS with a local technical committee.

The plan addresses heat loss by installing wall insulation, energy screens, weather stripping, and better shutters or vents. Heating system improvements, such as better heat distribution with horizontal air flow (HAF fans), pipe insulation, and root zone heat for better propagation are reviewed. Environment controls, HAF fans, lighting, irrigation pumps, and crop coolers are also evaluated.

Considerable funding is going to growers that replace low-efficiency heating systems with high-efficiency equipment. The new equipment may be air heaters or hydronic boilers with a minimum 80 percent efficiency for fuel oil, and 90 percent efficiency for gas. Depending on the state, payment is between $15 to $17/kBtu of the heater.

Other growers have received payments of up to $0.84/square feet for installation of solid insulation for sidewall and endwalls and up to $1.55/square feet for putting in an energy/shade screen system.

NRCS has expanded the payment schedule to include most of the above mentioned equipment at a payment rate of up to 75 percent of the installed cost.

To learn more about the EQIP program contact the local NRCS office or visit www.nrcs.usda.gov/getstarted.

The Rural Energy for America Program (REAP) provides assistance to agricultural producers to help complete a variety of projects, including renewable energy systems, energy efficiency improvements, energy audits, and feasibility studies. The program has restrictions on location; greenhouses have to be in defined rural areas. This program includes grants and low-interest loans.

The energy efficiency improvement projects that can be funded are similar to those in the EQIP program and also include renewable energy projects such as biomass, geothermal, solar, wind, and hydroelectric. Growers looking to install a renewable energy system to supplement existing fossil fuel equipment would come under this program. To reduce the size of the renewable equipment needed, energy efficiency improvements should be made first. Further information on REAP programs is available at www.rurdev.usda.gov/Energy.

Grants are competitive on a local basis and based on a ranking criteria, payback, and funding. Local grant writing assistance may be available.

Additional sources of funding may be available from state and private programs. These programs frequently provide funds for equipment that is not covered by the USDA programs.

The best source of information on programs is available at www.dsireusa.org.

John Bartok is a regular contributor to Greenhouse Management and an agricultural engineer and emeritus extension professor at the University of Connecticut. He is an author, consultant and a certified technical service provider doing greenhouse energy audits for USDA grant programs in New England.

Have a question? You can write John at jbartok@rcn.com.