Smart renewable energy investments for farms

Across the UK, farmers are facing a pivotal moment. Food production, conservation and decarbonisation in the race to Net Zero are no longer separate challenges, they are distinctly intertwined. But with increasing costs at every turn, severe weather straining crop production and the upheaval to inheritance tax laws, it’s harder than ever for farmers to find that balance.  

With onsite renewables such as wind turbines and solar panels gaining popularity, many farms are now turning to Power Purchase Agreements – long-term contracts that let them sell the clean energy they generate at a fixed price – to provide much-needed financial security. But, as with any innovation, renewables are also under scrutiny, often seen as taking away from the land, rather than a vehicle for rejuvenation. 

To provide some of the answers, we spoke to Kate Ryder, Head of Origination at Good Energy, about the positives and considerations of renewables for farms.   

Finding the land use balance 

The National Farmers Union (NFU) has set a goal for agriculture to reach net zero by 2040, with the focus placed on improving three key areas: improving productive efficiency of farmland, utilising new land management practices that capture and reduce carbon, and incorporating renewable energy usage and production. But for many farmers interested in renewable generation, progress is often hindered by grid connection, planning processes, and cost. 

Kate says:

“If I was looking to build a solar or wind farm, the biggest challenges I’d look at first are grid connection, planning and community sentiment. Where is the site physically, and can you access it easily? Does it get enough sun throughout the day? What’s around it environmentally? Those are the starting points.” 

Farmers might also consider utilising on-roof solar to reduce their own electricity costs, especially for those with high energy usage such as refrigerated grain stores, dairy farmers and livestock housing. The efficiency in solar technology has increased exponentially in recent years, with many farmers seeing ROI in as little as 3-4 years.  

“Solar panels once made sense only in the sunniest southern counties. Now, the technology has come on so quickly that you can build solar farms almost anywhere in the UK and still achieve strong yields. You can get a good assessment online for your site, predicting wind yield and solar radiation, which is a great first step”. 

The big grid question 

It’s not been long since news stories of 10 year wait times for grid connections made their way through rural communities. Although grid connections are still a major consideration for farmers looking for onsite solar, there’s been a substantial shift in reducing the wait times.  

“Previously, farmers were queuing for connections as far out as 2035 – but now, only viable projects are allowed to proceed. This means projects have to show that they have the financing, are on the path to obtaining planning permission, and meet other critical criteria. As a result, the grid connection timeline has dramatically shortened, with many sites now able to connect in as little as two years, which is much more viable.” 

Contacting your local Distribution Network Operator (DNO) is the first step in sourcing potential grid connections, and you can find your local operator here.

Planning and environmental impact 

Ultimately, farmers know what will work for their land best. Renewables should be used as an enhancement to their farming operations, rather than a detriment to the landscape and wildlife that surrounds them. However, given the right planning and consideration, both solar and wind farms have the potential to boost wildlife, as well as keep land safeguarded for food production.

“There’s now significant research showing that solar and wind farms can work beautifully alongside the natural environment when managed well” says Kate. “Sheep often graze beneath solar panels and use them for shade, while wildflowers can thrive in those areas too. In many cases, planning rules often require you to replace any hedgerows or natural features that are affected, so renewables can actually enhance biodiversity. 

“Doing that due diligence early really helps when you reach the planning committee stage, because you can demonstrate how your project benefits the environment. Even if you don’t need a full Environmental Impact Assessment, you’ll need an expert to assess the area and give you a professional view.”  

Power that works for you 

Once a solar or windpower site is set up, the next stage is to source a buyer. At Good Energy, we’ve developed our Power Purchase Agreements through years of working collaboratively with our generators, ensuring all the energy we source can be matched as closely as possible to consumption, 24 hours a day. 

“Many of the farmers we work with prefer 12-24 month fixed-price contracts,” says Kate. “They want the security of knowing what they’ll be paid for their power, but without locking themselves in for years at a time. The short-term structure means they can reassess each year and make sure they’re still getting the best deal.” 

“Unlike many energy companies, because we can half-hourly match generation and consumption, our energy is genuinely traceable, so you can see where it’s come from and where it’s going.” 

Hourly Matching provides traceable, tangible proof of the impact your generation is making, and helps strengthen the credibility of your own farm sustainability goals.  

“On top of PPAs, we offer Hourly Matching Credits to eligible generators, and we’re one of the most experienced UK energy companies at managing them. It means that where we’re able to match your generation to when our customers are actually using electricity, you get an additional top-up payment for it.” 

“Solar generation is very predictable, peaking in the middle of the day, and that aligns really well with some business energy use. Hourly Matching Credit is currently making many projects more commercially viable by adding that extra layer of income.” 

Find out about Hourly Matching Credit

The future of farming 

Ultimately, no one knows their land, local wildlife and market better than farmers themselves. The journey to balancing food, nature and energy can’t be done alone, and should be built on partnerships between those that are considerate of the challenges farmers face.  

We’re proud to be working closely with farmers to help find that balance between environmental conservation, and commercial stability. If you’re considering how solar or wind could fit into your farm’s future, our PPA team can help you explore the options.