Solar Panels for Agricultural Buildings
Mypower has a proven track record of providing energy solutions in the agricultural sector which deliver real benefits and savings.
Rising costs of electricity are adding to the escalating overheads faced by UK farmers and affect profitability. Farm buildings can provide large, uncomplicated roof space which is ideal for a PV installation which can help farmers significantly reduced their energy bills. Mypower specialise in solar panels for agricultural buildings, installing quality high-yielding solar panels.
High Energy Users
Refrigeration warehouses, grain stores, dairy units and chicken housing all require a lot of energy to operate. They also provide excellent opportunities for agricultural solar panels to help reduce electricity costs. Matching the daytime generation from the panels to the electricity demand within the building is the most efficient way to use solar energy as it means that the business needs to import less energy from the grid which costs up to three times as much as solar. At current installation costs solar PV is seeing an ROI of 15% and over - considerably more than any UK bank is offering! Average payback length is 5-6 years and your solar investment can be cashflow positive in as little as 2 years. With low interest rates solar is therefore viewed as a low risk investment particularly for a long term businesses such those in the agricultural sector.
No Feed-in Tariff, No Problem
The FiT subsidy closed at the end of March 2019, however, with the significant reduction in panel costs, increasing in individual panel output, and consistently rising grid supplied electricity prices, it is now better than ever to invest in solar PV.
For example, a recent Mypower installed 108kW solar PV system Daylesford Organic Farm in Gloucestershire will provide an Return On Investment of 17.5% and produce subsidy free electricity at around 4.85p per unit, including projected operations and maintenance costs. Compare this to a typical grid supplied rate of 15p per unit, a rate that is likely to rise for the foreseeable future.
What’s the future of solar panels for agricultural buildings?
- Reduces costs from energy suppliers
- Remains profitable
- Adds value to your business/farm
- Reduces carbon footprint
- Can be bought at a fixed cost of 5p per unit including projected operations and maintenance costs.
Solar is an excellent low risk technology as:
- Well established tried and tested technology in the UK
- Average yields are very predictable
- Panels and inverters have long robust warranties
- Maintenance is minimal - no moving parts
Solar energy - Clean, green and 1/3 of the price of grid supplied.
Impact of fitting solar now in 2020…
In 2012 Farmer Andrew Bullock had 198 panels and has no regrets about having installed solar on his farm. “We are both saving and making money. Anyone who has significant daytime energy use will make solar pay”, Mr Bullock.
Take a look at the table below, we compare Andrew Bullock’s 2012 solar installation to how it would look if he installed the same system in 2020.
Despite the subsidy no longer being available, the reduction in panel costs and the continued rise in grid supplied electricity, the 2020 system provides a better return than under the high subsidy rate provided in 2012. This is also based on only using 50% of the solar electricity on site.
Electric Vehicles improve the benefits further
The rapid uptake of electric vehicles will increase the onsite consumption of solar generated electricity, improving the 2020 metrics even further. This is before you even start to look at the savings you'll make by moving from petrol and diesel to electric!
Tax benefits with solar
Solar panels are classed as plant and machinery which means they are eligible for capital allowances. So the capital cost can be written off against profits in the first year.
If we take a farming partnership paying 40% tax as an example, its possible to claim back from HMRC 40% of the cost of the solar installation in the next tax returns. This means a £35,000 investment effectively costs the business just £21,000 making the first year return on investment significantly higher at around 23% and the cost of producing each unit of electricity considerably lower at around 3-4p/unit.
Interested or would like more information?
Mypower is highly experienced in supplying agricultural building solar panels. If you would like more informational along with the facts and the figures on how you can benefit from solar please get in touch on 01242 620894 or visit our contact page.
"Investigating the right supplier takes time which can be hard to find and having decided to commit our business to Mypower, the whole job was taken off our hands. Mypower managed the project completely and efficiently, so that we could get on with our business. It was all very fuss free and well managed. The panels are hardly visible on the new building and don’t spoil the look of any of the older buildings, a very important factor for Sheppy’s