Last Updated on September, 2024
Thanks to a new solar grant initiative launched by the UK government, farmers and landowners now have the chance to incorporate clean energy solutions.
These solar grants are a part of Defra’s effort to boost energy resilience and promote electrification in the agriculture sector. They aim to encourage the installation of solar panels on the roofs of farm buildings and irrigation reservoirs.
This article will discuss everything you need to know about these new solar grants, such as what they cover, the fund systems, eligible applicants who can apply for this farm productivity grant, and the application process for a grant funding agreement.
Quick Summary
- Solar grants are now available for farmers and landowners to incorporate clean energy solutions and improve energy resilience in the agriculture sector.
- The grants cover 25% of initial equipment costs for solar PV panels, battery storage systems, inverters, utility metres, and more.
- The goals and benefits of these grants include boosting agricultural productivity, promoting renewable energy, and helping the UK reach its net zero emissions goal. Eligible applicants include farmers, landowners, horticulturists, and growers, and the application process involves a two-stage process with a minimum grant of £15,000 and a maximum grant of £100,000.
Overview of New Solar Farm Grants
The UK government, represented by the Department for Environment, Food & Rural Affairs (Defra), is launching this solar grant in hopes of uplifting farm and horticulture productivity, while advertising renewable energy generation to help fight climate change using renewable energy from solar panels in order to achieve net zero emissions.
What the Improving Farm Productivity Grant Covers?
The Improving Farm Productivity grant offers to cover 25% of initial equipment costs, including:
- Solar photovoltaic (PV) panels.
- Battery storage systems.
- Inverters.
- Utility metres.
- Connections to the national grid.
- Power diverters.
- Installation costs and commissioning of eligible items.
- Alterations to the farm’s electricity supply to integrate the new solar equipment, such as additional wiring from the main distribution board.
- Enhancements to the electrical supply (up to 10% of the project’s total eligible costs).
- Installation of charging stations.
It is essential to note that solar PV panels must be installed on the rooftops of farm buildings or irrigation reservoirs. Ground-mounted systems do not qualify for grant funding.
What is the Grant Funding and Budget?
A significant farming investment fund of £45 million has been set aside to support these farm productivity grants.
- Farmers and landowners who participate can receive solar grants covering up to 25% of the expenses for installing solar PV equipment.
- The minimum grant of £15,000 is allocated, while the maximum grant allowed is £100,000 for solar installations.
- The funding is intended for solar systems installed on farm building rooftops or floating in reservoirs. Ground-mounted systems are not eligible for financial support.
- For robotic equipment, the minimum grant available is £25,000, and the maximum grant available is £500,000, and will cover up to 40% of the cost of the eligible items.
- While you can apply for both a solar grant and robotic and automated equipment, your total amount for both grants cannot exceed £500,000.
The Goals and Benefits
The primary objective of these solar grants is to boost agricultural productivity by incorporating renewable energy generation into farm power using solar PV panels.
By embracing these advancements, tenant farmers can help the UK reach its net zero emissions goal, while also benefiting from lower equipment costs associated with solar installations. This will result in higher economic returns and aid crop farming.
What are the Eligibility Requirements?
The new solar PV system grants are designed to improve farm productivity by utilising renewable energy from sunlight. The criteria below outline the eligible participants and qualifying projects for this farming innovation programme.
Qualifying Participants
- Farmers: Individuals actively involved in agricultural work.
- Landowners: Those who own land used for farming, horticulture, forestry, or other agricultural uses.
- Horticulturists and Foresters: Experts in the cultivation of gardens, orchards, or forests.
- Growers: Individuals or businesses engaged in the commercial cultivation of crops, plants, or trees.
Qualifying Projects
- Solar equipment: Project costs are covered for solar panels and related devices.
- Rooftop Solar: Solar installations on the roofs of existing buildings and facilities.
- Automation Equipment: Technology designed to enhance efficiency, including automatic or robotic systems.
To be eligible, the system must primarily provide power for the farm, with the option to export excess solar energy back to the national grid. Battery storage must be utilised to store solar energy.
The grant is open to all types of farms, including horticultural ones. Tenants may apply depending on the tenancy duration and landlord agreements. The grant can also be used to add battery storage to an existing PV system.
However, projects that have already commenced are not eligible. Solar thermal systems for hot water are excluded, though funding for heat stores is available.
What is the Application Process?
To receive this farming transformation fund, you have to go through a two-stage application process.
Prospective applicants must first ascertain their eligibility by submitting an expression of interest through the online checker before proceeding to a comprehensive application for final approval.
Stage One: Visit the online checker, which will allow you to enter basic information to determine your potential eligibility for funding.
Stage Two: After completing stage one, applicants will be invited to access the online application portal. Here, you must complete and submit a detailed application, which may require guidance from a special advisor. The Rural Payments Agency will then review the submitted applications to make a final decision.
Grant Funding Details
Successful applicants can secure financial assistance through solar panel grants that cover a portion of the cost of the solar equipment. This scheme is designed to support the adoption of renewable energy and enhance farm productivity.
Key Details
- Overall Grant: Provides up to 25% financial support for the cost of eligible solar photovoltaic (PV) equipment.
- Maximum Support: Beneficiaries can receive capital grants up to £100,000, offering substantial capital assistance.
- Minimum Support: Applicants must apply for at least £15,000 in funding to ensure the grant is used for significant investments.
- Eligible Expenses: The grant can be used for various items such as solar PV panels, battery storage, and inverters. However, note that it does not cover rent expenses.
Grant allocation is highly competitive, and funding priorities align with the goal of enhancing farm energy efficiency. Applications are evaluated based on these criteria to determine which proposals are most eligible for funding.
Once approved, payments are made to recipients based on the costs they have incurred. This ensures that the financial assistance directly benefits those who have invested in eligible equipment.
It is essential to note that grant recipients must be ready to cover the remaining 75% of the equipment expenses. This can be done using personal funds or other financial options, ensuring that the full investment required for the project is met.
Implementation and Usage
When adopting solar energy solutions, farmers and landowners need to carefully plan each step to ensure the successful installation and optimal performance of their solar PV systems.
The subsections below outline the key stages involved in implementing and maintaining these systems, from initial setup to long-term sustainability.
Installation and Commissioning
Crafting a working, efficient system design tailored to the farm’s unique needs is crucial.
This process involves choosing appropriate solar panels and inverters, and setting them up in an area with maximum sun exposure, ensuring compatibility with grid capacity, and integrating battery storage if necessary.
Professional contractors should handle the construction phase to ensure the process has minimal environmental and animal health impacts. Commissioning includes thorough testing to verify that the installation adheres to all operational specifications.
Optimising Benefits
- Implementing power diverters and smart inverters allows for the efficient use of surplus energy by directing it to battery storage or specific applications such as irrigation systems. This maximises the benefits of solar power.
- Additionally, collaborating with a renewable energy team can drive continuous innovation.
Maintenance and Sustainability
- Using high-quality, durable equipment is key to ensuring the long-term sustainability and reliability of the solar power system.
- Conducting regular maintenance checks prevents the system from deteriorating, addresses any issues with the system and resolves them, ensures consistent energy production, and maintains safety standards.
FAQs
Conclusion
As the agricultural sector faces growing pressure to lower carbon emissions and reduce energy costs, this sustainable farming incentive is crucial in assisting farm businesses to adopt renewable energy and more eco-friendly practices.
By providing financial support that covers a significant portion of the installation costs for solar photovoltaic (PV) systems, these new solar grants make this technology more affordable and available to farmers and landowners.
