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SOLAR FARMS ON AGRICULTURAL LAND
In an era marked by surging energy costs and a global push towards sustainability, rural landowners are increasingly considering renewable energy solutions to enhance their properties and finances.
The ideal farm would be using a high amount of electricity or there would be a suitable offtaker that is local to the installation, such as an industrial estate or factory etc – however it is still possible to sell electricity back to the Grid as well
While obtaining planning consent for ground-mounted solar farms on agricultural land can be challenging and can take time to get off the ground – rural properties usually have large barns that have suitable roofspace which can be a much easier option as planning is generally not required
Solar installations can be funded directly by the landowner and they then benefit from the export payments and reduced electricity costs or can be installed at no upfront cost to the landowner through schemes where the cost of panels is fully funded (usually by a pension company or investment group). In return the investment group will benefit from the payments from the electricity generated, while the farm enjoys buying energy at a lower rate of electricity than standard tariffs - the farmer could also receive a rent for the land
One of the main issues facing developments without a private wire to an offtaker is grid connection, and there are often long lead times to secure it (some projects can take years to come to fruition) – this can also be financially challenging if the point of grid connection is too far and can make or break the feasibility of the installation, which is why the evaluation of this is one of the first things we need to do
There are some things that you need to evaluate first that you can do yourself:
You then need to speak with us at TB Electrics who will be able to help you with the next steps – however this is where the commitment to some costs may need to be taken account of in order to evaluate the feasibility of the project (dependent on how you are funding the installation)
Energy Needs: Determine the energy demands of your farm / offtaker/ grid export and match them with the capacity of the solar farm you want to build.
Design Process – TB Electrics will design a system on your land to match the energy needs of the proposed solar farm and will liaise with the DNO on your behalf - we will also provide the information needed for the planning dept regarding the layout of the panel array - at TB Electrics we work with a local planning expert who will help with this.
This will also incorporate site visits – topology assessments and planning for electrical infrastructure such as inverters, transformers, and connections to the grid as well as the consideration of any battery storage systems that may be required – some of this work may be chargeable and costs will be incurred for surveys and grid connection requests
Finance Options
Financial Viability: TB Electrics work with experts to assess the economic feasibility of installing a solar farm. Consideration needs to be made of installation costs, ongoing maintenance, and potential revenue from selling excess energy back to the Grid or to an offtaker – all of these areas will determine which is the best way forward for your project – each one is bespoke and one size does not fit all
Financing Options: There are various funding methods available such as loans, leases, power purchase agreements (PPAs), or third-party ownership. Some options allow you to install solar with no upfront cost, allowing you to pay a lower rate for the energy produced instead or renting your land out – others mean that you will make the best ROI for yourself over a period of time – again this will be determined based on your project to find the best way forward for you
Return on Investment (ROI): We will calculate the potential savings from reduced energy costs and income from selling excess power back to the grid for you - this will vary on the finance options chosen and will be less if solar with no upfront cost is chosen
Metering and Electricity Agreements – The best options for this will have been determined at design stage based on whether you are the owner of the system or whether you have decided that solar with no upfront cost is best for you - we work with experts who will set up either the PPA (Power Purchase Agreements) with you or will arrange for the metering and the costs to the offtaker or Grid – dependent on the size of the system
Installation of the Solar System
Monitor and Maintain the System
Evaluate Performance & Benefits
Consider Expansion
By following these steps, you can take advantage of renewable energy to power your farm, potentially create a new revenue stream, and contribute to environmental sustainability.