Financing Options for Solar Panels
We offer a range of flexible financing solutions to help make solar power accessible for farms of all sizes.
Making Solar Accessible for UK Farmers
We understand that the initial investment in solar technology can be significant. That's why we've developed a range of financing options to help farmers of all sizes access the benefits of solar power without financial strain.
Flexible Financing Solutions
Maximize Your Return on Investment
Purchasing your solar system outright provides the highest return on investment and complete ownership of the system from day one.
Benefits of Outright Purchase:
- Highest long-term financial returns
- Full control over your energy system
- Potential eligibility for grants and tax incentives
- Excellent ROI with typical payback periods of 7-10 years
- Increases property value immediately
Fast Facts:
- Payback Period:
Typically 7-10 years for farm installations
- System Lifespan:
25+ years with minimal maintenance
- Return on Investment:
10-16% per year after payback period
Zero Upfront Cost Solution
With a Power Purchase Agreement, we install and maintain the solar system on your farm buildings at no upfront cost. You simply purchase the generated electricity at a reduced rate compared to grid prices.
Benefits of PPA:
- No capital expenditure required
- Immediate electricity cost savings
- All maintenance and repairs handled by us
- Protection from electricity price increases
- Option to purchase the system at fair market value after the agreement term
Fast Facts:
- Term Length:
Typically 10-25 years
- Cost Savings:
Typical 15-30% reduction in electricity costs
- Upfront Cost:
£0 - No capital expenditure required
Specialized Farm Financing
Our agricultural solar loans are specifically designed for farmers, with favorable terms and repayment structures that align with seasonal farm income patterns.
Benefits of Agricultural Solar Loans:
- Tailored to agricultural business cycles
- Flexible repayment terms aligned with farm income
- Lower interest rates than standard commercial loans
- Full ownership of the system from installation
- Option to make larger payments during profitable periods
Fast Facts:
- Loan Terms:
5-15 years available
- Typical Interest Rates:
4.5% - 7.5% (subject to status)
- Cash Flow Positive:
Often from year 1
Fixed Monthly Payments
With an operating lease, you make fixed monthly payments over a set term, typically 5-7 years, after which you can purchase the system at its fair market value, renew the lease, or have the system removed.
Benefits of an Operating Lease:
- Low initial investment (typically just a deposit)
- Fixed, predictable monthly payments
- Potential tax benefits (lease payments may be tax-deductible)
- No long-term commitment if your needs change
- Maintenance typically included in the lease
Fast Facts:
- Lease Term:
Typically 5-7 years
- Initial Investment:
Typically 1-3 months' payments
- End of Term Options:
Purchase, renew, or return
Government Grants & Incentives
Various grants and incentives are available to UK farmers investing in renewable energy. We can help you navigate these opportunities to maximize your financial benefits.
Available Incentives
-
Rural Development Programme
Grants for renewable energy projects on farms, including solar installations.
-
Enhanced Capital Allowances (ECA)
Tax incentives for businesses investing in energy-efficient technologies.
-
Smart Export Guarantee (SEG)
Payments for surplus electricity exported back to the grid.
-
VAT Reduction
Reduced VAT rates (5%) available for certain energy-saving materials.
Our Grant Support Services
Navigating the world of renewable energy grants and incentives can be complex. Our team offers comprehensive support to help you access all available funding opportunities.
- Assessment of eligibility for all current grants and incentives
- Assistance with application preparation and submission
- Expert advice on maximizing financial benefits
- Ongoing support throughout the grant lifecycle
Oakfield Dairy Farm
See how we helped a dairy farm in Yorkshire reduce their energy costs by 65% with a tailored financing solution.
The Challenge
Oakfield Dairy Farm was facing rising electricity costs for their milking parlour, refrigeration, and lighting systems. They wanted to invest in solar but were concerned about the upfront costs.
The Solution
We designed a 75kW roof-mounted solar system for their main barn and implemented an agricultural solar loan with seasonal repayment terms aligned with their milk production income.
The Results
- 65% reduction in annual electricity costs
- Loan structured with lower winter payments
- System will be paid off within 7 years
- Additional income from Smart Export Guarantee
"The tailored financing solution made solar power a no-brainer for our farm. We're now saving significantly on energy costs, and the seasonal payment structure works perfectly with our business cycle."
65%
Energy Cost Reduction
75kW
System Size
7 yrs
Payback Period
Find the Right Financing Option for Your Farm
Contact our team today to discuss which financing solution best suits your agricultural business needs.
Discuss Financing OptionsFrequently Asked Questions
Find answers to common questions about financing solar panel installations for farm buildings.
How do I know which financing option is best for my farm?
The best financing option depends on your specific circumstances, including your farm's cash flow, tax situation, and long-term plans. Our financial advisors can help you evaluate the options and choose the one that best aligns with your business goals.
What happens if I sell my farm before the financing term ends?
For most financing options, you can either transfer the agreement to the new owner (which can add value to your property) or settle the remaining balance early. With a PPA, the agreement can typically be transferred to the new owner or bought out. We'll help you navigate these options if you decide to sell.
Are there any government grants available for solar installations on farms?
Yes, several grants and incentives are available for UK farmers investing in renewable energy. These include the Rural Development Programme, Enhanced Capital Allowances, and the Smart Export Guarantee. Our team can help you identify and apply for all eligible funding opportunities.
How do seasonal repayment plans work?
Our agricultural solar loans can be structured with seasonal repayment plans that align with your farm's income cycles. For example, dairy or arable farms might have higher payments during peak production months and lower payments during quieter periods. This helps manage cash flow more effectively.
What maintenance costs should I budget for with a solar system?
Solar panels require minimal maintenance. If you choose an outright purchase, we recommend budgeting for annual inspections and cleaning, which typically cost £200-£300 per year for farm-sized systems. With PPAs and some lease options, maintenance is usually included in your agreement.
Discuss Your Financing Options
Our financial experts are ready to help you explore the financing options that best suit your farm's needs. Contact us today for a personalized consultation.
Our Financial Consultation Includes:
- Detailed assessment of your energy needs and potential savings
- Comparison of all available financing options
- Review of tax implications and benefits
- Personalized cash flow projections