Farming is an energy-intensive industry, with processes like irrigation, refrigeration, lighting, and machinery requiring a continuous supply of power. As energy costs continue to rise, many farmers are increasingly turning to renewable energy solutions, particularly solar power paired with battery storage, to help manage their energy needs more efficiently and reduce long-term costs.

But how does it work? What financial support is available? And is it worth the investment? This guide answers these questions and more, helping UK farmers understand the benefits of installing solar panels and battery storage on agricultural land.

 

Why Farmers Should Consider Solar Panels

The UK has an ideal climate for solar energy. Even on cloudy days, solar panels generate electricity, reducing dependence on the grid. For farmers, this means:

 

• Lower energy bills – Generate your own power instead of paying ever-increasing electricity costs.

• Energy security – Avoid power outages and fluctuations in electricity prices.

• Additional income streams – Sell surplus energy back to the grid through Smart Export Guarantee (SEG) schemes.

• Sustainability – Reduce carbon footprint and meet environmental targets.

How Much Money Can 1 Acre of Solar Panels Make in the UK?

The revenue from an acre of solar panels depends on several factors, including location, system size, and energy usage. On average:

• A 1-acre solar farm can generate between 350,000 to 450,000 kWh per year.

• If fully exported, this could earn approximately £40,000–£50,000 annually through energy sales and government incentives.

• If used to power farm operations, it could offset tens of thousands of pounds in electricity costs over the system’s lifespan.

   

Battery Storage: Maximising Solar Efficiency

Battery storage ensures that the energy generated during the day is available when needed—especially during early morning and late-night milking sessions.

Key benefits include:

 

• Store excess energy – Use solar power even when the sun isn’t shining.

• Reduce reliance on the grid – Minimise expensive peak-time energy use.

• Enhance resilience – Keep critical operations running during power cuts.

How Much Battery Storage Do You Need?

This depends on your farm’s energy profile. A typical farm could require between 50-200 kWh of battery capacity, but this varies based on energy demand and solar generation.

 

Physical Size of Battery Storage

Battery storage units vary in size depending on capacity. A standard 50 kWh battery can be housed in a compact unit roughly the size of a large fridge (1m x 0.6m x 1.8m), while a 200 kWh system may require a shipping container-sized enclosure.

For larger installations, you may need a dedicated storage room or an outdoor weatherproof enclosure. Proper planning ensures batteries are positioned in a well-ventilated, dry area with minimal exposure to extreme temperatures.

 

Fire Risks and Safety Considerations

Lithium-ion batteries, while highly efficient, require strict safety measures:

• Temperature regulation – Batteries should be kept in climate-controlled environments to prevent overheating.

• Ventilation – Proper airflow is necessary to avoid the buildup of heat and gases.

• Fire suppression systems – Large-scale battery installations may need fire suppression systems, such as inert gas or water mist suppression.

• Compliance with regulations – Installations must adhere to UK fire and electrical safety standards, including recommendations from the National Fire Chiefs Council (NFCC).

   

Solar Grants for Farmers in the UK

Government funding makes investing in solar power more affordable. Several grant schemes support renewable energy installations:

1. Improving Farm Productivity Grant (IFPG)

 

• Provides funding for solar PV and battery storage.

• Grants range from £15,000 to £100,000.

• Requires a minimum project cost of £60,000.

• Covers solar panels, battery storage, and installation costs

2. Rural England Prosperity Fund (REPF)

 

• Aimed at rural businesses investing in renewable energy.

• Supports energy efficiency improvements and solar power.

• Funding levels vary by local authority.

3. Smart Export Guarantee (SEG)

 

• Payments for surplus solar energy exported to the grid.

• Tariffs vary by supplier, but rates can be 5-15p per kWh.

• No upfront funding, but generates long-term income.

4. Countryside Stewardship Scheme

 

• Grants for farmers implementing sustainable practices.

• While not directly funding solar, it supports environmental improvements that align with renewable energy projects.

What’s the Return on Investment?

The initial cost of a solar PV system with battery storage can range from £30,000 to £150,000, depending on system size and battery capacity. However, with grants and tax incentives, payback periods are typically 5-7 years.

Example ROI Calculation:

System Size	Estimated Cost	Annual Savings	Grant Contribution	Payback Period
50 kW	£50,000	£8,000-£10,000	£15,000	4-6 years
100 kW	£80,000	£15,000-£18,000	£30,000	5-7 years
200 kW	£150,000	£30,000-£35,000	£50,000	6-8 years

Additional Benefits:

• Tax relief – Solar panels qualify for capital allowances, reducing taxable profits.

• Land diversification – Unused land can generate revenue from solar farms and battery storage.

• Long-term savings – Electricity costs are locked in at a fraction of grid prices.

 

VEST's Funded Battery Option

We recognise that funding a battery upfront can be challenging, especially when businesses are already being pulled in so many different directions. We have therefore introduced a funded battery option offers a game-changing solution for businesses and farmers looking to adopt energy storage without the burden of upfront costs. With this zero-capex model, VEST enables customers to install state-of-the-art battery storage systems without any initial investment. Instead of paying for the equipment upfront, the cost is spread over time, typically through energy savings or a performance-based payment structure.

This approach makes it easier for businesses to enhance their energy efficiency, store excess solar energy, and reduce dependence on the grid, all while minimizing financial strain. VEST’s funded battery option is particularly beneficial for farmers seeking to integrate renewable energy solutions, as it allows you to upgrade their energy infrastructure without a large capital outlay, paving the way for a more sustainable and cost-effective future.

 

Is Solar & Storage Right for Your Farm?

Before investing, consider:

1. Roof or Land Availability – Do you have suitable barn roofs or unused land?

2. Energy Usage – What are your peak energy demands?

3. Funding Eligibility – Can you access grants to reduce costs?

4. Installation Partner – Choose an experienced solar provider for optimal efficiency.

 

Take the Next Step

Solar energy alone is not enough anymore. Solar energy and battery storage, however, is a game-changer for farmers. With government support, financial savings, and long-term sustainability benefits, now is the time to explore your options.

Start saving on energy and securing your farm’s future— get in touch today. Contact us today.