A simple way of reducing high energy costs is by installing solar panels on your farm.
No one in the rural community needs to be told that the current economy is hard on farmers.
Costs are high, profits are uncertain and the future feels very unclear. Diversifying farm income is one way to make sure that your business can continue moving forward.
Leasing land for solar and storage is a sustainable way to secure long-term, index-linked income for your farm for decades to come, and you can still farm the land once the panels are in place.
Solar is becoming an increasingly popular option for farmers and landowners across both the ROI and NI – it’s weather-proof, comes with decades of guaranteed income and has the added benefit of having significant positive impacts for the land, the local community and the environment.
Every solar project generates green, renewable electricity for businesses, utilities and communities, and contributes towards meeting vital government targets aimed at combatting both the energy and climate crises.
Leasing your land for solar doesn’t mean abandoning traditional farming practices, either.
Solar farms
Solar farms are the perfect place to graze sheep, so you will find that by renting your land for solar you’re able to make the acres work twice as hard – income from the panels, and income from your flock.
Solar panels provide shade and shelter for sheep, while the secure fencing offers protection from predation and harassment. Research across the world, from America to Australia, suggests that solar grazing is a win for your sheep, and your bottom line.
The financial proposition of a solar lease is an attractive one – solar projects have lifespans of up to 40 years, and involve long-term leases.
The rental income offered is usually paid/ac, above standard agricultural lease rates, and is fixed and index-linked – providing a secure and diversified revenue stream for years to come, helping to keep farms in the family and manage estate planning.
Additionally, farm rental income is considered a favourable revenue stream by banks and lenders, which has allowed solar farm landowners to successfully secure further financing using the rental income.
This also allows landowners to address and improve future financial planning for their business, and to keep farms in the family long-term.
As well as financial benefits, a solar lease can be a bonus for land quality and local biodiversity.
Properly managed, solar farms can be havens for local wildlife, and there is even evidence to suggest that projects planted with pollinators in mind can have a positive impact on food production.
The disruption to the land from the solar panels is minimal, and land is returned to its original state or better when the lifespan of the project is up.
There is also research which infers that the quality of soil under solar panels improves during the duration of the project.
The positive impacts of solar projects don’t stop at the site boundaries. Solar projects developed in NI are subject to business rates, and projects in the ROI are subject to commercial rates, which are paid to the local authority.
This means that the local authority will benefit from hundreds of thousands of pounds or euros across the lifespan of each project, potentially even millions, in taxes related to the project.
The business/commercial rates paid by the owner of the solar farm on your land could go towards improvements to local services, such as schools and community assets, meaning that the project has benefits that go beyond sustainable energy.
Lightsource bp is a leader in UK and Irish solar – we develop, finance, build and operate utility-scale solar power and storage projects through smart and sustainable solutions.
The company has been active in NI since 2013, and to date, has developed around 60% of the operational large-scale solar in the country.
Lightsource bp entered the ROI in 2015, and developed a portfolio of around 300MW, building strong partnerships across the country.
Lightsource bp has a superb local track record, making it the ideal partner for any landowner looking to make the most of their land, secure long-term income and contribute to the fight against climate change.
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