Financing Options for Solar Panels to Your Farm
The agricultural sector is becoming increasingly reliant on solar panels and renewable energy solutions as they look to cut down their outgoings on energy and find reliable sources of energy for set prices.
Solar panels offer a sustainable and cost-effective power source as they utilise clean, renewable energy that is free. This helps farms reduce their reliance on third-party energy sources from the National Grid, decreasing the dependence on fossil fuels and vulnerability to price fluctuations.
However, the initial costs of commercial solar panel installations can be pricey, which can often put agricultural business owners and farmers off considering them. But, there are several financing options available to help.
At Prostar Energy, we keep a close eye on government grants, incentives and alternative financing options available for each industry sector, especially agricultural and farming, because they can benefit from these solutions. In this blog, we run through the financing options available for your farm or agricultural businesses to install solar panels.
Government Grants and Incentives
The government is under pressure to invest in more renewable solutions for businesses, and the farm and agricultural sector is no exception.
The shape this takes is constantly changing, so it is always worth doing a quick Google for “solar power grants for farmers” or the like.
As of August 2024, the following grants are available for farmers and agricultural businesses looking to turn to solar panels for their energy.
Improving Farm Productivity Grant
For those looking to improve productivity on their farm or reduce environmental impact, the Improving Farm Productivity Grant is available to you.
This means that you can apply for this grant if you are looking to install:
- Solar PV panels
- Solar Batteries
- Inverters
- Utility Meters
- Electrical Grid Connections
- Power Diverters
If applying for solar PV equipment, there are a couple of limitations to be aware of:
- The minimum grant you can apply for is £15,000 (25% of £60,000).
- The maximum grant is £100,000 per applicant business.
- You will need to pay the remaining costs of the project.
- You can’t use other grant money in conjunction with this grant.
Applications have two stages:
- An online checker
- Completion of a full application
Agricultural Loans
Applying for a loan is always an option to fund the installation of a solar panel system. Banks and financial institutions, specifically ones that cater to the agricultural sector, are likely to provide a loan for part or all of the amount of a solar panel installation.
While these will come with repayment plans and interest, they can sometimes be worth it. The money being saved on energy bills and the potential extra income generated by the system through the Smart Export Guarantee can contribute towards repaying the loan.
Power Purchase Agreements
Power Purchase Agreements (PPAs) are a final financing solution for farmers and agricultural businesses.
This solution is where a company, such as Prostar Energy, rents the land or roof space from you to install a solar panel solution. You and the company then enter an agreement where you purchase the energy generated by the system at a fixed rate, meaning you benefit from cheaper energy without having to pay the upfront costs of the installation.
If entering such an agreement with us, we will own and maintain the system for you, so you don’t need to add solar panel maintenance to your list of jobs or worries.
A PPA provides the usual benefits of solar panel installation:
- Energy stability
- Energy independence
- Protection from price fluctuation
Get Expert Guidance From Us
Navigating the different finance options for solar panels can be difficult and stressful, especially when running a farm. But don’t worry, as we are here to help.
Our team keep up-to-date on the latest initiatives and grants available for farms and agricultural businesses looking to install solar panels. This means we are on hand to help you figure out which ones you are eligible for and how to apply.
We can also explain the benefits of each funding option, helping you narrow down the most suitable solutions for you and your business.
If wanting to explore a PPA, we can create a customised agreement and system for you and your farm. Over the years, we have worked with many farmers and agricultural businesses, providing knowledge and understanding of your unique challenges and energy needs. So, you can be confident that you will benefit from an agreement with us.
Additionally, no matter what financing option you choose, we offer end-to-end support and service, from initial consultations to financing option advice and to design of systems and installation through to maintenance and upkeep.
The journey to benefiting from solar power doesn’t need to be stressful, and we aim to provide a hassle-free, easy-to-follow process without jargon so you know what is happening at all times.
Contact us today for our specialist guidance and knowledge on solar panel financing options for farms and agricultural businesses. Call us on 0331 6302225 or complete our online contact form to request a callback from our friendly team.
