Commercial Solar Panels for Farms & Agricultural Buildings

Commercial solar for farms and agricultural buildings

Agriculture is well positioned for commercial solar. Farms have available land and large barn roofs, energy costs are a significant overhead, and dedicated grant funding (REAP) is available. Solar on farms delivers some of the shortest payback periods of any sector.

Energy consumption on farms

Farm electricity consumption varies by type. Dairy farms are among the highest consumers due to milking parlour equipment, bulk tank cooling, water heating and ventilation. A 200-head dairy farm may consume 80,000–150,000 kWh per year. Poultry farms with ventilation and lighting systems, arable farms with grain dryers, and horticultural operations with heated polytunnels also have high consumption.

REAP and rural grants

The Rural England Prosperity Fund (REPF) provides capital grants for rural businesses, typically covering 25–50% of project costs. Grant values range from £5,000 to £50,000. Applications are made through your local authority. Your installer can help with the application process and provide the technical specifications needed.

Agricultural businesses also benefit from the AIA (Annual Investment Allowance) and can claim capital allowances on solar equipment. Combining REAP with AIA can reduce the effective cost of a solar system by 50–65%.

Ground mounted and barn roof systems

Farms have the option of both roof-mounted and ground-mounted solar. Modern steel-framed agricultural buildings are generally well suited to roof-mounted panels. Older buildings with asbestos roofs may require ground-mounted systems on adjacent land.

Ground-mounted systems on agricultural land may qualify for permitted development if under certain thresholds, reducing planning costs and timescales. Agrivoltaic arrangements (sheep grazing under panels) maintain the agricultural use of the land.

Financial returns for farms

A 50 kWp system on a dairy farm costs approximately £48,000. With a 25% REAP grant (£12,000) and AIA tax relief, the net cost can drop to £27,000. At 72% self-consumption, annual savings are approximately £11,000. Payback: 2.0–2.5 years. 25-year saving: £240,000+.