Solar Panels for Farms: A Practical Guide for North East Farmers
Farming is an energy-intensive business. From grain driers and milking parlours to cold storage and irrigation pumps, electricity costs represent a significant and growing overhead for agricultural businesses across the North East. Solar panels for farms offer a proven way to reduce these costs while making productive use of large roof areas that are ideal for solar generation.
At ALPS Electrical, we have installed solar systems on dairy farms, poultry units, arable operations and mixed farms across Teesside, North Yorkshire and County Durham. This guide covers the practical and financial considerations based on our direct experience.
Why Farms Are Ideal for Solar
Agricultural buildings are often perfectly suited to solar panel installation for several reasons. Large, unshaded roof areas on barns, sheds and livestock buildings provide ample space for significant solar arrays. Many farm buildings have south or near-south-facing roofs. Energy consumption on farms is often highest during daylight hours (milking, grain processing, lighting for poultry units), which aligns perfectly with solar generation peaks.
Typical farm solar installations range from 30kW to 200kW+, generating tens of thousands of kWh per year. A 50kW system on a barn roof can generate approximately 45,000 kWh annually, saving £11,000+ per year at commercial electricity rates.
Financial Benefits and Capital Allowances
The financial case for farm solar is compelling. Commercial electricity prices are typically 25-30p per kWh, meaning every unit of solar electricity you use yourself saves significantly more than residential rates. Key financial benefits include:
- Annual Investment Allowance: The full cost of the solar installation can be deducted from your taxable profits in the year of purchase. For a £60,000 system, this could reduce your tax bill by £12,000+ (at 20% corporation tax).
- Reduced electricity bills: Savings of £10,000-£30,000+ per year depending on system size and electricity consumption.
- SEG income: Export surplus electricity to the grid and earn 4-15p per kWh.
- Payback period: Typically 4-7 years for farm installations, which is faster than residential due to higher self-consumption during working hours and Capital Allowance tax relief.
Dairy Farms
Dairy operations have high and consistent electricity demand throughout the day, primarily from milking equipment, milk cooling tanks, water heating and lighting. Solar generation aligns well with the twice-daily milking cycle. We have installed systems on dairy farms across North Yorkshire that are saving farmers thousands of pounds every year.
Poultry Units
Poultry units require consistent lighting and ventilation, creating a steady electricity demand that solar can offset effectively. The large, flat-roofed poultry buildings common in the North East are ideal mounting surfaces for large solar arrays. A 100kW system on a poultry unit roof can generate enough electricity to cover 60-80% of the unit's annual consumption.
Arable Farms
Arable farms have seasonal peaks in electricity demand, particularly around harvest time when grain driers are running. While the seasonal nature of demand means self-consumption rates can be lower outside harvest season, battery storage and export tariff income help maintain strong returns year-round.
Planning Permission for Farm Solar
Agricultural buildings benefit from permitted development rights that allow solar panel installation on existing farm buildings without full planning permission in most cases. Ground-mounted solar arrays on agricultural land may require planning permission, and there are specific rules around the size and positioning of arrays. We advise on all planning considerations during the survey.
Battery Storage for Farms
Adding battery storage to a farm solar installation can further improve the financial return by storing daytime generation for use during evening milking sessions, overnight cold storage operation, or early morning activities. Commercial battery systems from GivEnergy and Fox ESS offer capacities of 50-200 kWh suitable for agricultural applications. The combination of solar and battery storage allows farms to achieve self-consumption rates above 80%, maximising the value of every unit generated.
Farms with time-of-use electricity tariffs can also use battery storage for tariff arbitrage, charging overnight at cheap rates and discharging during expensive peak periods. This strategy works year-round regardless of solar generation levels.
The ALPS Electrical Approach for Farm Installations
Our commercial solar team handles farm installations from initial survey through to commissioning and ongoing support. We conduct a detailed site survey including energy usage analysis, prepare all G99 applications to Northern Powergrid, manage installation with minimal disruption to farm operations, and provide comprehensive aftercare including monitoring and maintenance.
We understand that farming operations cannot stop for an installation. Our team works around your schedule, coordinating with milking times, harvest periods and livestock movements to ensure your business continues uninterrupted. Contact us for a free farm solar survey and find out how much your farm could save.