Member-owned and -operated Marsh River Cooperative, a retail store in the town of Brooks, Maine, sells locally produced food and other goods. Founded in 2014, the co-op’s mission includes supporting the local economy and strengthening the community’s social fabric. Its welcoming space, filled with displays of foods, beverages, artwork, and more, often bustles with locals and visitors. But rising costs post-pandemic forced the Board of Directors and staff to make quick decisions.

Operating out of a large building that is more than a century old, the co-op had long dealt with high energy costs. But when a dramatic increase in the price of natural gas led to spiking electricity rates in early 2023, store manager Matthew McKillop knew he and the Board of Directors were facing a crisis. How could their small grocery store in a rural community generate enough revenue to cover the “brutal” electricity bills that began arriving? 

McKillop and the Board debated their options. One possibility was to focus on increasing sales to cover rising costs, but McKillop knew this was a risky approach. Another option was to generate power on-site, but investing in a solar array would be a major expense, and the Board was hesitant to take on debt. Clearly, there wasn’t an easy, in-house solution. They began seeking partners.

First the business turned to the Cooperative Development Institute (CDI) for advice. CDI recommended Coastal Enterprises Inc. as a potential source of financing for a solar project. McKillop also learned about USDA’s Rural Energy for America Program which helps fund renewable energy projects for farms and rural small businesses.  Since the co-op operated out of a leased retail space, securing permission from the property owner was also key. She soon became another enthusiastic supporter (later donating the property to the co-op in 2024). After seeking bids on the project, the co-op selected SolarLogix LLC, and the Belfast-based beneficial electrification company became another partner. 

With these partners in place, pursuing solar power for the co-op became feasible. USDA Rural Development provided the possibility of winning a grant to cover about half the project costs. In addition to that, CEI offers very favorable financing terms for food-related businesses. Says McKillop, “Once I learned about CEI’s program and REAP, I said, ‘We need to move.’” Over about six weeks, he and the other partners scrambled to pull together the plans and paperwork necessary for the grant application and financing for a 47kW solar project. The hard work paid off, and they secured a $51,600 REAP grant in July 2023.

Lining up the financing and a major grant wasn’t the end of the hard work though. There remained challenges to resolve. The plan called for installing the PV panels on the roof of a barn located behind the co-op. (It was situated well and would be easier to fortify to support the necessary weight.) That building needed significant structural work before the panels could be installed. The improvements took longer and cost more than predicted to complete. Fortunately, the community was supportive and local donors stepped in to help cover the costs. 

With all the logistics to sort out and unexpected delays in the preparatory work, it was a stressful time for the Board and staff. The co-op’s leaders knew it was worthwhile though. “It is a thirty-year investment in the property,” says McKillop. “We knew that conventional energy costs might fluctuate over the short term, but the long-term reality was that electricity prices would climb, as would the store’s demand.” Ultimately the barn was shored up and SolarLogix installed the new system in September 2023.

More than a year after the completion of the project, the benefits are clear. After making loan and insurance payments for the first year, the co-op cleared $5000 in savings versus what it otherwise would have paid for electricity. “For a small business like this, that is huge,” notes McKillop. Rather than struggling to pay rising utility bills each month, the co-op instead has made payments on its own energy generation equipment. (See detail's of the array's power generation online via the co-op's SolarEdge link, here.) Utility costs no longer pose an existential threat. “While we’re paying off the loan for this project, we’re gaining a long-term asset that demonstrably changes our balance sheet,” says McKillop. 

When reflecting on whether it was worth it to pursue the renewable energy option versus “simply” trying to increase revenue to pay for rising utility costs, McKillop has no doubts. He ticks off all the components that would have been necessary to increase revenue, including higher labor and product costs. The solar array, on the other hand, takes no additional inputs. “It sits there and does what it is supposed to do – lower energy costs. It is the easiest way to reduce overhead costs from a business perspective, and I don’t have to worry about it!” 

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