Solar Panels for Farms and Agricultural Solar Panels
With the cost of electricity increasing year on year, many farms are looking to install solar panels in order to reduce their energy bills and maintain profitability. With vast roofs and expanses of unused land, farms are ideal locations for large solar PV systems that can offset high daily electricity consumption and help protect your business against future rises in electricity costs.
Take advantage of unused roof space on your farm
Your farm and agricultural premises likely have vast amounts of unused roof space that is not currently being used. Commercial buildings, barns, outhouses and other structures are perfectly suited for the installation of solar panels, generating your own clean electricity. Farms and the agricultural industry are also often looking to increase their green credentials and make their operations less impactful on the environment.
Solar panels installed on the ground level are also a large opportunity for additional electricity generation, making it achievable to power your entire operation with 100% of your own solar electricity. This is a huge opportunity, and with solar panels being classed as plant and machinery, they are eligible for capital allowances. A typical commercial solar panel system will provide free electricity for more than 25 years, achieve returns of more than 12% per annum and pay back installation costs within 6-8 years.
Financial benefits
Integrating solar PV with battery storage
Finance for agricultural solar panels
Power Purchase Agreement
Powering UK farms with solar PV
BENEFITS AT A GLANCE
How can solar panels benefit my farm?
Significantly reduce business overheads
Secure your future energy
Diversify land-use
Protect your business from power shortages
Tax exemptions
Achieve a healthy ROI
- Solarsense brochure
How do solar panels generate electricity for my farm?
Solar PV systems harness the power of the sun. Once sunlight hits the PV cell, it causes a reaction that excites the unstable electrons, generating direct current (DC) electricity. This is then passed to the inverter, which converts the DC to alternating current (AC) to power the farm. If you have a solar battery storage system, the battery stores AC electricity directly for later use.
What is solar battery storage for my farm?
Solar battery storage implements a battery or batteries that can store solar electricity for later use. They can also be charged with grid electricity to take advantage of off-peak rates. Battery storage helps protect your business from potential rationing and brownouts, and an emergency power supply system can provide power during a power cut.
Do solar panels still work in cloudy weather?
Yes, solar panels will still generate electricity during the day, even if it’s cloudy and overcast outside. Their efficiency may be lower, but energy will still be produced.
What are the various ways I can generate solar electricity for my farm?
Solar panels are typically installed on any unused roofspace that you have available. As your farm likely has several structures, facilities and outbuildings, this makes solar a fantastic solution. Especially if you aren’t using the space for anything and it is available. Older structures that haven’t been maintained may require roof reinforcement, but they should all be suitable if they were constructed for living or storage purposes.
You can also install solar panels at ground level. This can be integrated into farm land or grazing land for dual use. This ensures that you can continue to use the land for cattle and sheep grazing while generating electricity for your business.
During your initial assessment, we will review current land and structure usage and design a system that maximises all of the potential space that you have available.
When and where can I use the electricity generated from solar on my farm?
Solar PV systems effectively generate free electricity for your farm for over 25 years and can be utilised for a variety of purposes. You can use the electricity to directly power buildings around your farm, which can be particularly useful if you need power in different areas and require an off-grid power supply that isn’t installed or supplied to all areas. Solar battery storage allows you to choose when you use your generated electricity, as well as take advantage of off-peak, cheaper electricity rates when connected to the grid.
Solar is a fantastic solution for off-grid operations and areas of your farm where you don’t currently have electricity. It’s also a great way to generate your own electricity for use for a wide range of different applications. Battery storage is a fantastic solution for around-the-clock power and for off-grid operations. This provides you with greater access to electricity across the farm and your agricultural areas, allowing you to utilise different parts of the land to generate electricity.
Can I use solar for off-grid power?
One of the main benefits of solar panels for farms is that they can generate electricity even without grid access. There are still farms that are too remote to have access to the grid, or they are waiting for connection, where you will require electricity. Self reliance
Solar electricity is the cleanest source of electricity available, and allows farm owners to diversify their off-grid power supply systems away from fossil fuels. This is a benefit for both grid-access and non-grid-access areas and structures.
How do solar panels make my farm more sustainable?
Farm owners are regularly looking to reduce their overall environmental impact. Solar panels generate the cleanest electricity available from electricity-generating technologies, which is another significant benefit of installing solar panels on your farm.
You are also reducing overall electricity generation costs, thereby reducing your reliance on the grid or fossil fuels for areas or operations without direct grid access. Improving the green credentials of your farm has a range of benefits, from improving your farm’s image to different incentives aimed at reducing the overall environmental impact of the farming and agricultural sector.
What are ‘Agrovoltaics’?
The term “Agrovoltaics” refers to solar panels used in a dual-purpose to maximise the efficient use of your available land. Agrovltaic systems are solar panels installed on the ground alongside livestock and/or crops. Solar panels provide additional benefits, such as natural protection from the elements whilst generating your own clean electricity.
Solar panels will not disrupt crop growth, and livestock can graze on the area. This allows you to maximise the potential of your arable land used for crop growth or livestock grazing. Solar panels can reduce heat and water evaporation for crops, and some systems can be enhanced with additional technology to promote crop growth and monitor crop health.
Is my farm appropriate for solar panel installation?
If you have unused roof space on your farm or land, you will likely be able to install solar panels. Solar panels are most efficient when installed on south-facing roofs, and are also appropriate on west and east-facing roofs. North-facing roofs are not appropriate.
Can unused land be used for solar panel installation?
Yes, unused land is a suitable location. Ground-mounted systems are designed with dual land use in mind, where livestock like cattle and sheep can still graze on the land around the solar panels while you generate clean electricity.
Can solar be installed on any farm building?
Solar panels are designed to fit onto most roof types as long as the roof is strong enough to take the system’s weight.
Can solar panels be installed on metal buildings?
Yes, metal farm buildings are a great place for agricultural solar panels. Metal roofs typically have a longer lifespan than traditional roofs, which is an advantage for the longevity of your panel system.
I can't install solar panels on my roof. Do I have any other options?
Yes, installation is possible on farm buildings such as barns, sheds, and garages, or through ground-mounted systems.
My farm building is quite old. Is it suitable for solar panels?
The first step is an assessment of your property. The installer will evaluate your roof’s material, age, load-bearing capacity, and overall condition.
How are solar panels being integrated with farming operations?
Solar panels are well-suited for farming operations. Ground-mounted systems allow for livestock grazing. Additionally, advanced solar panel technology is available that can monitor the ground and air humidity, providing insights into suspected crop health.
How are solar panels fixed to my roof? Will they cause damage?
Solar panels are typically mounted on a rail system that is fixed to the roof. A solar PV system is designed to maintain the strength and integrity of your roof while remaining watertight.
Do I need planning permission for agricultural solar panels?
Roof-mounted solar panel installations are usually seen as ‘permitted developments’, meaning you likely won’t need planning permission. However, you will need planning permission if your building is listed or in a conservation area.
Can I integrate solar panels with existing farm energy systems or machinery?
Yes, solar panel systems are designed to integrate seamlessly with your farm’s existing electrical infrastructure to power machinery, lighting, refrigeration units, milking parlours, and other high electrical load systems.
Will solar panels affect my farm insurance?
Yes, installing solar panels could affect your insurance policies as it may alter your property value and risk factor. It is best to inform your insurer of the changes to ensure the new system is covered, as failure to disclose the installation could lead to denied claims.
Do you support us with the entire design and installation?
We understand that the requirements for your farm will be more complex than those for other projects. We work closely with all of our clients to design their entire solar PV system, solar battery storage, and any other additional features they require. We handle the whole process, from the design of your solar panel system to any aftercare and maintenance required after installation. We can support you with more basic installations to highly comprehensive systems.
What are the different ways to fund the solar panels for my farm?
There are several different ways to fund solar panels for your farm. The type of funding that suits you will depend on your requirements, including cash flow and other aspects.
Many farm owners choose to claim solar panels as plant and machinery, thereby qualifying for the annual investment allowance (AIA). This applies to all farms and agricultural businesses, which means that you can claim up to £1m per year. This allows you to deduct the full value of your solar PV system from your profits before tax for efficient tax relief.
The most common way to finance solar panels is to arrange CapEx financing to cover the initial installation costs. This is an effective solution for those who want to generate their own electricity right away and manage their cash flow with repayments. Then you are improving your bottom line with up to 100% savings on your electricity bills. We offer 100% asset finance and a range of different finance solutions.
Power purchase agreements (PPAs) are also highly popular and are among the most common ways to finance solar panels. You effectively rent your roof and buy discounted solar electricity rather than investing in a solar PV system of your own, paying only for the electricity you produce.
How are farms and landowners benefiting from solar panels?
Farms and landowners benefit by generating clean electricity and achieving significant savings on energy bills (up to 100%). Solar panels enable businesses to reduce their dependence on the national grid, making operations more environmentally friendly and future-proofing the farm for decades.
How will solar panels help my farm's bottom line?
Generating your own electricity will significantly reduce your need to purchase electricity from the grid, offering major savings, especially for high-energy operations like milking parlours and refrigeration. Solar power provides a fixed, long-term cost for a portion of your electricity, safeguarding your business against future price increases.
How long do solar panels last, and does efficiency drop over time?
High-quality solar panels are likely to last up to 40 years and degrade by approximately 0.5% per annum. A typical commercial solar panel system will provide free electricity for more than 25 years, achieve returns of more than 12% per annum, and pay back installation costs within 6–8 years.
Are there grants available for businesses to install solar panels?
There are often grants available for installing renewable technologies. Additionally, solar panels are classed as plant and machinery for tax purposes, which makes them eligible for capital allowances.
What factors most significantly influence the overall ROI and Payback Period?
Several factors influence the overall ROI and payback period of solar panels for your farm. The number of solar panels that you can install, as well as the total amount of sunlight hours, the orientation of the installed solar panels, and the current rates in terms of electricity costs. After you have made a return on your investment, you are effectively generating free electricity for your farm. Investing in solar panels stabilises your energy costs against grid uncertainty, while also reducing your overall environmental impact.
How can solar panels being eligible for capital allowances help ROI?
Instead of having to wait for a return on energy savings, capital allowances can see more immediate returns in the cost back from tax bills (usually in the first year after solar panel installation). Solar panels and associated equipment (inverters, batteries, mounting systems) are generally classified as Plant and Machinery for tax purposes. This allows you to deduct the cost of this plant and machinery from taxable profits before calculating corporation tax. This is a highly efficient way to offset the cost of your investment whilst also generating your own electricity and getting a tax deduction as well off your tax bill.
Capital allowance/tax exemptions for solar panels for farms explained.
Solar panels and equipment are classified as trading assets and are therefore eligible for the annual investment allowance (AIA). This applies to all farms and agricultural businesses, which means that you can claim up to £1m per year. With rising machinery costs and other plant equipment, it’s essential to manage AIA relief, but it’s important to bear in mind that solar equipment is part of the allowance, and you should consider this as a significant benefit of investing in solar for your farm. We can help you plan your investment in your yearly forecasting, as well as how to implement AIA and other available methods to fund your solar panels. This ensures that we create a plan tailored to your specific needs and requirements.
FYA (50% first year allowance) can be used if the £1m AIA allowance has already been used. The other 50% can be written as a special 6% rate in subsequent years. This offer is available until March 31, 2026. In the past, it was less common for farming and agricultural businesses to utilise their AIA allowance consistently. However, with the cost of machinery and plant as mentioned, it is now more likely to meet and exceed your AIA allowance each year. Depending on the overall size of your operations and the plant/machinery that you need.
Do solar panels require maintenance after installation?
Solar panels require little to no maintenance once installed correctly. They do require cleaning if they become dirty with debris or dirt. Your inverter will require replacement, typically once every 10 years. Solar batteries also require regular inspection and a professional maintenance schedule to keep them running efficiently.
Do solar batteries require maintenance after they are installed?
Solar panels do require regular (professional) maintenance after they have been installed, and it’s recommended to arrange for this at least once a year. Checks will be carried out on any corrosion within the battery and the charge levels of the battery itself. The battery will also be cleaned if required and inspected for other signs of physical damage. Wiring is also checked to ensure that it is connected correctly and for signs of damage. The frequency can vary, and we will advise you on this after we have installed your new or replacement system.
How long will my solar panels last?
Solar panels on farms have a lifespan of over 25 years after installation. Many systems have been known to last for decades longer, and the longevity of your solar panels will depend on their condition over time, as well as regular inspections and cleaning. At the end of their life, the panels are safely dismantled and recycled where possible and then replaced. Inverters typically require replacement every 10 to 15 years.
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