Three Salem-area farms and a local community solar project have received nearly $4 million in federal loans and grants to support renewable energy investments.
Oregon’s U.S. Senators Jeff Merkley and Ron Wyden announced the funding in a release Wednesday.
The investments are meant to help farmers, ranchers, and rural small businesses adopt renewable energy technologies, conduct energy audits, and cut down on costs and pollution.
The largest chunk of money is a loan from the U.S. Department of Agriculture’s Rural Development Rural Energy for America Program and is worth $3.2 million. The loan, which is blacked by the U.S. Department of Agriculture, will assist New York-based Zena Solar, LLC with the purchase and installation of a 3.5 megawatt community solar array on 12 acres of land in rural Polk County on Northwest Zena Road.
The Zena project is among the largest Rural Energy for America Program projects in the state, said Max Sprague, public affairs specialist with the U.S. Department of Agriculture. She said an increase in money for the program from the 2022 Inflation Reduction Act “has allowed us to fund way more projects for farms and small businesses across Oregon this year, including several around Salem.”
The Zena project is expected to be operational this fall and is currently open for people to sign up and receive energy credits from the power it will generate, according to the Oregon Community Solar Project. Zena Solar did not respond to a phone call from Salem Reporter seeking information about the project.
Local farms will also benefit from the program.
Hostetler Farms, LLC, located between Salem and Brooks, was awarded a $764,488 grant to purchase and install new solar infrastructure on two existing buildings. The system that will replace 83% of the business’ energy use with renewable electricity. The company is expected to reduce its utility bill by $115,400 per year, according to a news release from Merkley’s office.
Another combined $29,509 in grants will help two small Salem farms set up solar infrastructure replacing 100% of their energy use with renewable electricity.
Hennigan Farms LLC, located east of Hayesville, received $9,509 to purchase and install roof-mounted solar technology on its shop’s roof, saving the farm $1,352 per year, the release said. A second farm in Salem, which was not identified, received $20,000 for roof-mounted solar technology for the roof of its office building, which will save the farm $2,017 per year.
“When Oregon’s farmers have access to renewable, sustainable energy, rural communities thrive,” said Margi Hoffmann, the USDA rural development state director for Oregon, in the release. “These projects won’t just save farmers and ranchers thousands per year. They’ll also create jobs, boost local economies, and promote energy independence and disaster resilience.”
The 12-acre Zena solar array project, which is expected to produce enough power for 261 homes, will participate in Oregon’s Community Solar Program which helps people and businesses that can’t install their own solar panels benefit from the energy generated.
Customers who get electricity from Portland General Electric, Pacific Power or Idaho Power are generally eligible to sign up for the community solar program. Once enrolled, subscribers own a share in a solar project and pay a monthly fee toward that project as part of their electricity bill, plus an administrative fee of about $1 per month. In exchange, they get a bill credit for the power generated by the project, which is generally higher than the monthly fee.
“Lowering costs in rural Oregon through clean energy equals good news for families, small business owners, farmers and ranchers working hard throughout our state to make ends meet,” Wyden said in a statement. “I am gratified these federal investments are coming to help small-town Oregonians make the transition to fresh energy options that improve their bottom line and make their communities even better places to live and work.”
Contact reporter Joe Siess: [email protected] or 503-335-7790.
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Joe Siess is a reporter for Salem Reporter. Joe joined Salem Reporter in 2024 and primarily covers city and county government but loves surprises. Joe previously reported for the Redmond Spokesman, the Bulletin in Bend, Klamath Falls Herald and News and the Malheur Enterprise. He was born in Independence, MO, where the Oregon Trail officially starts, and grew up in the Kansas City area.
