Across the UK, more than a third of farmers are thought to be considering investing in renewable energy schemes to help ease the affect of falling commodity prices.
With a potential return on investment of over 10%, the latest research by Barclays confirms installing renewable energy is seen as a win-win across all areas for farmers.
Interest in adopting renewable energy has grown strongly since the Government introduced new subsidies – known as feed-in tariffs (FITs) – in April last year.
Under the FiT system, customers are paid for every kilowatt hour of electricity their system produces as well as being paid for electricity sold back to the Grid.
David Hunt, a Director with Eco Environments said, “It provides them [farmers] with a strong and ongoing income…it allows them to make the best use of their land; it fits with the farming culture of business diversification; and, it allows them to generate their own electricity and become increasingly self-sustainable.”
The average barn roof could generate as much as £5,000 worth of annual income, with larger field-based projects of 50kWp potentially reaching over £15,000.
Edwin Hughes, a North Wales farmer, is one of many in the UK installing solar panels on their farm buildings.
Using Eco Environments to install a 19.62kWp solar PV system – consisting of 90 Hyundai SF218 panels – Mr Hughes’ system will now produce around 15,692kWh of electricity a year.
Thanks to his total annual income/saving of £6,590 – a 22.69% return on investment – Mr Hughes will have paid off the entire system in seven years.
With guaranteed cash back for the next 25 years on every unit of electricity generated by a solar panel it proves an attractive investment for both business and the environment.
