With the supports available for farmers and a payback between two to three years, investing into solar PV is an “absolute no-brainer”.
That’s according to the managing director at Local Power Ltd. and chair of the Micro Renewable Energy Federation (MREF), Pat Smith, who was speaking on the AgriFocus podcast by Agriland.
Rooftop solar PV to generate energy for self consumption and indeed export to the grid with the supports that are now in place is “definitely a consideration for every farmer”, Smith said.
Supports available include the Solar Capital Investment Scheme (SCIS) under the Targeted Agricultural Modernisation Scheme (TAMS). Farmers can receive grant aid at a 60% rate with a ceiling of €90,000.
The fact that there is a 60% TAMS grant available and that a farmer can get the VAT back makes the payback on solar PV very, very quick – between two to three years, Smith told AgriFocus.
Commenting that every farmer should be encouraged to contribute to the decarbonisation of Irish agriculture, the managing director at Local Power Ltd. and MREF chair said:
“Putting solar PV on a farmer’s roof not alone saves him money in the context of reducing his energy bill, but it is also reducing carbon emissions on the farm and the farmer should get credit for that.”
Smith believes that the farming community is “particularly well placed” to invest in solar PV as farmers have roof space and costs for on-farm energy use which they can displace with their own renewable energy.
Solar PV investment
“In the case of solar PV, the investment you make, even if you borrow the money, the saving can make the repayments so there is no net impact on the cashflow,” Smith said.
Speaking to AgriFocus, he said: “I don’t think I have ever seen an investment that a farmer can make where you get as good a return as you will with solar PV, considering the 60% TAMS grant that is available to everybody.”
He encouraged farmers who have an interest in solar PV to move now and agree a grid connection, particularly if they plan on setting up a larger system.
“If a farmer invests in solar PV and gets a TAMS grant, there is absolutely no reason that he cannot export to the grid and get a payment for that energy exported to the grid,” he said.
However, Smith said that the grid will eventually fill up unless there is “huge investment” to ensure the pipe is big enough to deal with the amount of renewable energy.
“I would like to think that every farm, home and business in the country will eventually have solar PV generating renewable power, helping the country decarbonise and reducing their energy bills.
“I see no reason why that wouldn’t be the case going forward,” the managing director at Local Power Ltd. and MREF chair told AgriFocus.
You can listen to the full interview with Pat Smith on the AgriFocus podcast by clicking here.