Solar For Farms
Agricultural Solar Panels
Mypower has a proven track record of providing energy solutions in the agricultural sector which deliver real benefits and savings.
Solar panels for farm buildings
High and volatile electricity costs are adding to the escalating overheads faced by UK farmers which affect profitability. Farm buildings can provide large, uncomplicated roof spaces which are ideal for installing solar PV, helping farmers to reduce their energy bills significantly. Mypower specialise in installing high quality, high yielding solar panels for agricultural buildings.
Agricultural solar system - High energy users
At current installation costs, solar PV is typically seeing an ROI of 20% and over - considerably more than any UK bank is offering! Average payback length is 3-6 years and your solar investment can be cashflow positive in as little as two years. With low interest rates, solar is therefore viewed as a low risk investment, particularly for long-term businesses such as those in the agricultural sector.
Grant Funding
Since the closure of the Feed-in-Tariff (FiT) subsidy in March 2019, the commercial case for solar PV has continued to improve driven by technology cost reduction and efficiency improvements coupled with significant rises in energy costs. In 2024 the typical payback period is 3-6 years before any potential capital allowance benefit is considered.
To make the case even stronger, in late January 2024 DEFRA released Round 2 of it's 'Improving Farm Productivity grant' supporting the farming and horticultural community in England to improve productivity and efficiency and reduce greenhouse gas (GHG) emissions. Solar PV is specifically identified as a technology that will be supported by the significant 25% grant for eligible businesses and projects. An online eligibility checker needed to have been completed in March 2024, for projects to be considered for funding. If you have an approved project and are considering solar PV, please contact us.
Another line of funding made available in 2024 focused on the poultry market in England. The 'Laying Hen Housing for Health and Welfare grant' seeks to support farmers with investments in their facilities to improve the conditions for their birds. As a part of this, for certain projects, upto 25% funding is available for solar PV. The initial eligibility checker is scheduled to close on the 18th of September 2024. Please contact us if you wish to include solar PV within any application.
You will hopefully see on this website and in our case studies that irrespective of whether your farm or agricultural businesss is eligible for grant funding or not, the commercial returns are impressive. An investment in solar PV will provide your business with low cost, locally generated, clean electricity for many years to come.
If you would like to find out more about how solar PV could benefit your business, or need input to the solar PV element of your applications, please contact us.
The future of an agriculture solar system
Benefits include:
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Reduced costs from energy suppliers
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Panels remain profitable
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Added value to your business/farm
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Reduced carbon footprint
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Can be bought at a fixed cost of 5p per unit including projected operating & maintenance costs
Electrification will improve the benefits further
The uptake of electric vehicles and investments in technologies such as robotic milking systems will increase the onsite consumption of solar generated electricity, improving the commercial benefits associated with localised solar PV generation even further. This is before you even start to look at the savings you'll make by moving from petrol and diesel to electric.
Solar is an excellent low risk technology
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It is a well-established, tried and tested technology in the UK
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Average yields are very predictable
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Panels and inverters have long, robust warranties
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Maintenance is minimal - there are no moving parts
Ben Harrison of Mypower with Adam Henson and Duncan Andrews of Cotswold Farm Park
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, it's possible to claim back from HMRC 40% of the cost of the solar installation in the next tax return. 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 4-6p per unit.
Solar energy - clean, green and 1/4 of the price of grid supplied.
Impact of fitting solar panels on farms in 2024
In 2012, farmer Andrew Bullock had 198 solar panels on his farm fitted and was pleased with the results: “We are both saving and making money. Anyone who has significant daytime energy use will make solar pay”, he commented.
The table below compares Andrew’s 2012 solar installation with how the figures would look for a roof mounted 50kWp installation in 2024.
50 kWp solar PV installation
Despite the subsidy no longer being available, the reduction in panel costs and the continued rise in grid supplied electricity means that the 2024 system provides a better return than under the high subsidy rate provided in 2012.
This is also based on using just 60% of the solar electricity onsite, a key lever when considering the commercial returns.
Frequently Asked Questions
Can you put solar panels on agricultural land?
Yes
Yes, however, for a large-scale ground mounted solar PV system there are lots of considerations. These include the requirement for full planning permission and also how you get the power from the panel location into your supply or into the grid. In many cases farm buildings provide a great platform for solar PV, typically with less onerous planning requirements and more easily accessible electrical infrastructure.
Agriculture Solar Panel Price
Varies
There are lots of factors that influence the cost of installing large-scale ground mounted solar PV systems, including the costs to connect the system to the grid, if you are not connecting directly into a supply already in place.
The systems that Mypower installs are connected into customer’s supply point. This provides greater commercial benefit as the solar electricity generated at the equivalent unit rate of 4-6 pence per kWh displaces grid supplied electricity at typical daytime grid rate 25-30 pence per kWh (in 2023). The cost of a solar PV system is typically recovered within the first 4-6 years of operation, sometimes less depending on the price of the grid supplied electricity it is replacing. There is also further commercial opportunity via tax benefits under the capital allowances scheme.
Are solar panel farms profitable?
Yes
Yes, solar PV is one of the lowest cost ways of generating clean electricity. The energy source (the sun) is free, so once the system has paid for itself and the minimal ongoing maintenance costs are accounted for, solar PV can be highly profitable.
Marshfield Farm Ice Cream
Westbury Farms
Purbeck Ice Cream
Lye Cross Farm
Daylesford Organic Farm Shop
Kernock Park Plants Ltd
P. J. Yates Ltd
Lower Clopton Farm Shop
Potato Farm
Sheppy's Cider and Farm Shop
Have we captured your interest?
Mypower is highly experienced in supplying solar panels for agricultural buildings.
If you would like more information, 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.