Solar power generation has grown dramatically in recent years, with the cost of solar installations falling by 70 percent since 2010. Many dairies are finding solar provides significant cost savings well worth the initial investment, especially when incentives, tax credits, rising electricity costs and financing are factored in.

Whether commodity prices are high or low, it’s always a good time to lower your operating costs. While feed and labor costs can be difficult to reduce, dairy farms often have opportunities to reduce utility costs by 10 to 35 percent. In our experience, this savings equates to anywhere from 2 to 30 cents per hundredweight in avoided costs.

Dairies know that by keeping a close eye on the expenses, you can set up a lean operation that is well insulated against changes in the market. It used to be that many of us would see energy costs as a standard monthly expense we couldn’t do much to alter. Today, however, more and more dairies recognize that energy costs are within the control of the farm, and upgrading to more energy-efficient equipment makes good business sense.