Three Salem-area farms and a local solar project have received nearly $4 million in government loans and grants to support renewable energy investments.
Oregon U.S. Senators Jeff Merkley and Ron Wyden announced the funding in a press release on Wednesday.
The investments are intended to help farmers, ranchers and small rural businesses adopt renewable energy technologies, conduct energy audits and reduce costs and pollution.
Most of the money is a loan from the U.S. Department of Agriculture’s Rural Development Rural Energy for America Program and is valued at $3.2 million. The loan, which is endorsed by the U.S. Department of Agriculture, will help New York-based Zena Solar, LLC purchase and install a 3.5-megawatt 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 funding for the program from the Inflation Reduction Act of 2022 “has enabled us to fund far more projects for farms and small businesses across Oregon this year, including several in the Salem area.”
The Zena project is expected to be operational this fall and is currently open to anyone interested in signing up for the electricity it generates and receiving energy credits, according to the Oregon Community Solar Project. Zena Solar did not respond to a call from the Salem Reporter seeking information about the project.
Local farms will also benefit from the program.
Hostetler Farms, LLC, located between Salem and Brooks, received a $764,488 grant to purchase and install a new solar array on two existing buildings. The system will replace 83% of the company’s energy use with renewable electricity. The company is expected to reduce its electric bill by $115,400 per year, according to a press release from Merkley’s office.
Additional grants totaling $29,509 will help two small farms in Salem build solar infrastructure that will enable them to replace 100% of their energy use with renewable energy.
Hennigan Farms LLC, east of Hayesville, received $9,509 to purchase and install solar panels on the roof of its business, saving the farm $1,352 annually, the release said. A second farm in Salem, which was not named, received $20,000 for solar panels on the roof of its office building, saving the farm $2,017 annually.
“When Oregon’s farmers have access to renewable, sustainable energy, rural communities thrive,” Margi Hoffman, the U.S. Department of Agriculture’s rural development division director for Oregon, said in the release. “These projects will not only save farmers and ranchers thousands per year. They will also create jobs, boost local economies, and promote energy independence and disaster resilience.”
The 12-acre Zena solar farm project, which is expected to produce enough electricity for 261 homes, will participate in the State of Oregon’s Community Solar Program, which helps people and businesses that cannot install their own solar panels benefit from the energy generated.
Customers who receive electricity from Portland General Electric, Pacific Power or Idaho Power can generally enroll in the community solar program. After enrolling, subscribers own a share in a solar project and pay a monthly fee for that project as part of their electric bill, plus an administrative fee of about $1 per month. In return, they receive a bill credit for electricity generated by the project, which is typically greater than the monthly fee.
“Reducing costs in rural Oregon through clean energy is good news for families, small business owners, farmers and ranchers who work hard to make ends meet in our state,” Wyden said in a statement. “I’m pleased that these federal investments will help small-town Oregonians switch to fresh energy options that improve their bottom lines 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 with the Salem Reporter. Joe joined the Salem Reporter in 2024 and primarily covers city and county government, but loves a surprise. 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 begins, and grew up in the Kansas City area.
