Farms are in a very good position to make use of solar energy. There is usually lots of roof space on a farm, for example on barns as well as the main house. That’s why many farmers have already made use of solar installations to handle much of their energy needs. It is also why Barclays have set up a fund of £100m specifically for farmers to install solar panels for farms.

What makes solar energy such a good way to deal with a farm’s energy needs is the feed in tariff. This has made it a much better financial opportunity, as now it should only take 10 years to pay off the initial installation costs. After that time, you can actually make money from a solar installation. Farmers’ interest in generating clean energy has soared following the government’s introduction of the Feed-in tariff (FIT). However, the new survey reveals that the way the Feed-in Tariff works and the incentives offered from it are in fact poorly understood. The tariff, introduced in April 2010, means that farmer’s are paid for all renewable or low carbon electricity generated and consumed, as well as that exported.

The way the feed in tariff works is that for every unit of electricity produced with your solar panels, measured in kilowatt hours, you are paid a certain amount. Exactly how much will depend on the type of solar installation, as well as how much power it produces. For the highest rates it has to be less than 50kW. With farmers’ profit margins from food sales under constant pressure from their buyers – the powerful supermarkets – producing renewable energy is likely to become a highly valuable source of income for farmers. As the evidence shows, not only is there profit to be made directly from the energy production, but consumers are more likely to buy from environmentally friendly farms.

Using Farmland

Of course it is not only roof space that can be used for solar panels, they can also be ground-mounted. This means that if you want to use a portion of your farmland for solar panels then that is a possibility as well. If that is done though then it means that the farmland will be tied up with this for around 25 years at least. That may or may not be the most profitable use for it. There have been cases where farmland has been used for solar energy instead of crops or the grazing of animals. This is usually done when the intention is to power other homes though.

To be able to make the decision as to whether this is your best option or not, you will need specific advice from Skyshades. We will be able to survey your property and recommend your best option in terms of using solar panels. Although of course the farmer is going to have the best idea of the opportunity costs of using the land for solar power production rather than actual farming. The best way to finance a solar installation is through savings of course. However, given the large costs its likely that you are going to need a loan. As stated, Barclays has a fund set up specifically for this purpose. It’s also sometimes possible to have the costs added on to your mortgage, which is often the best option as this will have the lowest interest rates.

“With 75 per cent of our land in agriculture, farmers are well placed to capture renewable natural energy, while maintaining their traditional role in food production,” says Paul Cottington, environment adviser at the NFU. Site and orientation are critical, as well as roof pitch and strength, shading from trees or buildings, and the electricity network. Due south is ideal, with a 30 degree pitch, but it can vary around that Skyshades technology means that solar panels farming are very flexible. Old roofs could be replaced with an integrated solar roof, as the panels may last 50 years. Most small installations will not require planning permission, but in-field arrays may do. Take advice from your local planning authority, and consult with neighbours and local stakeholders to ensure you have their support before you start.