Solar Panels for Farms — Cut Energy Costs and Earn with Your Roof Space

Why Farms Are Ideal for Solar

Agricultural buildings are among the best candidates for solar panel installation in the entire country. Large south-facing barn roofs, minimal shading from surrounding structures, high daytime electricity consumption from milking parlours, grain dryers, refrigeration, irrigation pumps and workshop machinery — farms tick every box that makes solar a compelling investment. Yet despite these advantages, agricultural solar remains one of the most under-served markets in the North East and Yorkshire. Very few solar installers have the experience, equipment or willingness to work on farm buildings, which means there is almost zero competition for the attention of farmers looking to install.

ALPS Electrical has made agricultural solar a core part of our business. We understand the unique requirements of farm installations — from working around livestock and harvest schedules to navigating the specific grant funding and planning considerations that apply to agricultural buildings. We install systems from 20kW on single barns through to 200kW+ multi-building arrays across the holding.

The Financial Case for Agricultural Solar

Farming is an energy-intensive business. Electricity bills for a typical mixed farm in the North East range from £8,000 to £25,000 per year, and for dairy farms with milking parlours and refrigeration, costs can be significantly higher. Solar panels directly offset these costs by generating free electricity from roof space that is otherwise doing nothing.

Return on Investment

A 50kW solar system installed on a farm building typically costs between £35,000 and £45,000 before grant funding and tax relief. With 70-80% self-consumption (which is realistic for most working farms given daytime energy demands), annual savings of £10,000-£14,000 are achievable at current electricity rates. This delivers a simple payback period of 3-4 years — and often less once grant funding and Capital Allowances are factored in.

After payback, the system generates free electricity for the remaining 25+ years of its operational life. Over a 30-year lifespan, a 50kW farm solar system can deliver total savings in excess of £300,000, making it one of the highest-returning investments available to any agricultural business today.

Export Income

Any electricity your farm does not use can be exported to the grid via the Smart Export Guarantee (SEG). While export rates (currently 4-15p per kWh depending on supplier and tariff) are lower than the value of self-consumed electricity, they provide a useful additional income stream during weekends, holidays and quieter periods when farm energy demand is lower.

Government Grants for Farm Solar

Several government grant schemes are available that can significantly reduce the upfront cost of a farm solar installation. Navigating these funding streams can be complex, but we work with farm clients to identify and apply for all available support.

Farming Equipment and Technology Fund (FETF)

The FETF provides grants of 25% of the cost of specified items, with a minimum grant of £1,000 and a maximum of £25,000 per item. Solar panels and associated equipment are eligible under the energy efficiency and environmental improvement categories. The grant is competitive and application windows open periodically, so timing your installation to align with an open window can reduce your costs substantially. We monitor FETF windows and alert our farm clients when applications open.

Rural England Prosperity Fund

Delivered through local councils, the Rural England Prosperity Fund supports capital projects that benefit rural businesses and communities. Solar installations on agricultural buildings have been funded through this scheme in several North East and Yorkshire local authority areas. Eligibility varies by council, and we can help you determine whether your local authority is participating and whether your project qualifies.

Countryside Stewardship and Other Schemes

While the main Countryside Stewardship scheme does not directly fund solar panels, there is growing alignment between environmental stewardship objectives and renewable energy investment. The transition from the Basic Payment Scheme to Environmental Land Management schemes (ELMS) is creating new opportunities for farmers to be rewarded for environmental improvements, including energy efficiency measures. We keep up to date with these developments and advise our farm clients on emerging funding opportunities.

Capital Allowances for Farm Solar

For farm businesses operating as limited companies, full expensing allows you to deduct 100% of the cost of a solar installation from your taxable profits in the year of purchase. At 25% corporation tax, a £40,000 solar system effectively costs £30,000 after tax relief. For sole traders and partnerships, the Annual Investment Allowance (AIA) provides the same first-year deduction up to the £1 million annual limit.

When you combine a 25% FETF grant with full expensing tax relief, the effective cost of a farm solar installation can be reduced by 40-45% compared to the headline price. This dramatically accelerates the payback period and makes the investment case virtually unanswerable.

Planning Considerations for Farm Solar

Most farm solar installations fall under agricultural Permitted Development rights, which means planning permission is not required provided certain conditions are met. The panels must be installed on an existing agricultural building, must not protrude more than 200mm from the roof surface, and the building must not be listed or in certain designated areas.

For farms in National Parks (such as the North York Moors), Areas of Outstanding Natural Beauty, or conservation areas, additional planning considerations apply and prior approval from the local planning authority may be needed. We have experience working within these designations and can advise on the likely planning position during the initial survey. Where a planning application is required, we can recommend experienced planning consultants who specialise in agricultural renewable energy projects.

Ground-Mounted Arrays

Where roof space is limited or unsuitable, ground-mounted solar arrays on agricultural land are an alternative. However, ground-mounted systems above 9 square metres require planning permission and may affect Basic Payment Scheme eligibility on the land used. The planning process for ground-mounted farm solar is more involved but is generally well-supported by local planning authorities given the agricultural and environmental benefits.

Battery Storage for Farms

Adding battery storage to a farm solar system allows you to store surplus generation during the middle of the day and use it during early morning and evening milking, grain drying runs, or other high-demand periods outside peak solar hours. This increases your self-consumption rate from a typical 70-80% to 90% or above, maximising the value of every unit your panels generate.

We install battery systems from FOX ESS, GivEnergy and Solis for agricultural applications, with capacities from 10kWh for smaller holdings up to 100kWh+ for large dairy and arable operations. Battery storage also provides a degree of resilience against power cuts, which can be particularly valuable in rural areas where grid reliability may be lower than in urban settings.

Three-Phase Battery Systems

Most farms operate on a three-phase electricity supply, and we install three-phase inverter and battery systems to balance generation and storage across all three phases. This ensures optimal performance and avoids the export-on-one-phase-import-on-another issue that can reduce savings on poorly designed systems. Our three-phase design experience is one of the reasons we are trusted by farmers across the region.

G99 Grid Connection Applications

All farm solar systems above 3.68kW per phase require a G99 application to Northern Powergrid before installation can proceed. In rural areas, the local grid infrastructure is sometimes more constrained than in urban settings, which can affect the size of system that can be connected without network reinforcement. We carry out a preliminary grid assessment as part of our survey to identify any potential constraints early and submit the G99 application promptly to avoid delays. The G99 process typically takes 8-12 weeks, and we manage it entirely on your behalf.

Why Choose ALPS Electrical for Your Farm Solar

We are MCS certified, NAPIT registered and TrustMark endorsed, which means your installation qualifies for all available grants and export tariffs. We carry comprehensive public liability insurance and have experience working safely around livestock, machinery and active farm operations. Our team understands that farm schedules are dictated by seasons, weather and animals, and we plan installations around your operational requirements rather than expecting you to work around ours.

We serve farms across the whole of North Yorkshire, County Durham, Teesside, Northumberland and into West and South Yorkshire. Whether you run a 50-acre smallholding or a 2,000-acre arable operation, we can design a solar and battery storage system that delivers genuine, measurable savings from year one.

Get a Free Farm Solar Survey

Call us on 01642 790 489 or fill in the form on this page to arrange a free, no-obligation survey. We will assess your buildings, review your electricity consumption, identify applicable grant funding and provide a detailed proposal showing exactly what your system will cost, what it will save and how quickly it will pay for itself. There is no obligation and no pressure — just honest, expert advice from a team that understands farming and renewable energy.