Adoption of On-Farm Renewable Energy Production Systems: A National Study

Abstract

This study first develops a U.S. atlas of adoption of nine types of on-farm renewable energy system: biodiesel, ethanol, geo-exchange, biomass, methane, small hydro, solar, wind turbines, and leasing of wind rights. The atlas maps systems adopted per farm as well as the geographical concentration of adoption. Hawaii had the most total systems per 100 farms (21.1), followed by Vermont (10.7), and Alaska (10.1). Arizona (5.1) ranked 20th among states. Next, the study uses multivariate regression analysis to examine how adoption rates vary by producer group, state renewable resource potential, electricity prices, and state renewable energy policies. Adoption rates vary significantly across farms producing different types of commodities. Higher electricity prices appear to increase adoption of wind turbines and solar panels, but not of other renewable systems. Renewable resource potential also explains adoption rates, although the relationship can be complex. For example, solar adoption rates are relatively high in Alaska and New England, with relatively low solar potential. This may be because of policies in those areas to encourage adoption or because solar potential measures need to be re-scaled based on length of growing season.