With rising energy costs and growing environmental pressure, UK farmers need practical solutions to cut expenses and meet sustainability goals. The government’s Improving Farm Productivity Grant, administered by the Rural Payments Agency (RPA), offers a direct route for farmers to install solar photovoltaic (PV) systems and improve their bottom line.
Solar Panel Installations: A Cost-Effective Energy Solution
Farming operations require significant energy, whether for powering cold storage, irrigation, or general equipment. Solar panels can directly reduce energy bills by generating electricity on-site, making farms less reliant on costly grid power. This grant covers 25% of eligible solar project costs, making it an attractive opportunity for farmers.
Eligible costs covered by the grant include:
- Solar PV panels
- Inverters
- Solar batteries
- Utility meters
- Electrical grid connections
- Power diverters
- Installation and commissioning
- Electrical supply upgrades (if required for the project)
Solar Panel Grant Amounts and Eligibility Criteria
Farmers applying for solar PV grants can receive between £15,000 and £100,000, provided the project meets the minimum total cost of £60,000. The grant is designed to encourage significant investment in solar energy, ensuring that only projects with a meaningful impact on farm productivity and sustainability are eligible.
For those intending to apply for both a solar PV grant and a Farm Productivity grant (covering items such as robotics, automation, or advanced ventilation systems), two separate applications must be submitted. Combined, the total maximum grant across all applications is £500,000 per business.
Funding Restrictions
While the grant offers substantial support, farmers must cover 75% of the project costs from their own resources. Acceptable funding sources include:
- Loans or overdrafts
- Income from the Basic Payment Scheme (BPS)
- Countryside Stewardship payments
However, public funding from other sources cannot be used to cover the remaining costs. Additionally, the grant cannot be used for:
- Ground-mounted solar arrays
- Replacement of existing solar PV panels
- Routine maintenance or repairs
- Legal fees, planning permission, or other regulatory compliance costs
- Standard agricultural equipment such as tractors, seed drills, or sprayers
Key Restrictions and Conditions
- The grant only applies to rooftop solar installations on farm buildings or irrigation reservoirs.
- Projects using fossil fuel-powered equipment will not be prioritised unless a renewable energy alternative is unavailable.
- Contractors providing agricultural services are ineligible to apply for solar PV grants.
Long-Term Benefits for Farmers
Investing in solar panels through the Improving Farm Productivity Grant provides numerous advantages:
- Reduced energy costs: On-site electricity generation lowers dependency on grid power, offering long-term savings.
- Increased productivity: With reduced operating expenses, farms can allocate resources to other critical areas.
- Sustainability: Meeting environmental targets becomes easier, as solar panels help reduce greenhouse gas emissions.
- Revenue generation: Excess electricity can be sold back to the grid, creating an additional income stream.
- Future expansion readiness: Solar installations can be integrated with future technologies, such as electric vehicle (EV) charging points or additional automation systems, without significant modifications.
Ready to Apply? Here’s How We Can Help.
We specialise in solar panel installations tailored to the unique needs of agricultural businesses. Our team has extensive experience in helping farmers navigate the grant application process and implement high-quality solar energy systems.
From the initial consultation to system design, installation, and final commissioning, we handle every aspect of the project to ensure success.
Don’t miss this opportunity to cut energy costs, increase productivity, and secure a sustainable future for your farm. Contact us today to get started.
