Is Agrivoltaics Farming Worth It?

More and more UK farmers are looking for ways to boost sustainability, reduce operational costs and diversify revenue streams. Agrivoltaic systems, where solar generation and traditional agriculture operate on the same land, offer a way to produce clean electricity while crops continue to grow and livestock graze. With farmers facing varying pressures and priorities, they may question: is agrivoltaics worth it?

This article explores the benefits of agrivoltaics systems for UK farmers, highlighting the financial, operational, and environmental advantages, as well as practical considerations for implementing a system successfully.

What is Agrivoltaics Farming?

Agrivoltaics farming refers to systems that balance solar power generation with agricultural productivity, using an elevated design. The panel layout, height and spacing are designed to provide dual-use spaces for planting and livestock grazing, while generating solar power.

Benefits of Agrivoltaics Farming

Cost Reductions & Long-Term ROI

Agrivoltaics offset the electricity used for farming operations, such as irrigation and processing, which reduces reliance on the grid, its volatile prices, and overall costs. Any excess electricity generated can also be exported to the grid, which can create a new income stream for farmers.

With schemes such as the Smart Export Guarantee (SEG), farmers can earn payments for exporting surplus electricity back to the grid and contribute to national decarbonisation goals. Other tax benefits are also available as solar panel installations qualify as plant and machinery, meaning farmers may be able to claim capital allowances such as AIA and, in some cases, FYA. Structures & Building Allowance may apply separately to qualifying agricultural buildings, but not to the solar equipment itself.

Finally, with panels typically operating for 25+ years, payback periods are often shorter for energy-intensive farms, circa 3-4 years. With IRR estimated at an attractive 30%,  upfront investment is more manageable and financially attractive.

Sustainability & Environmental Advantages

This renewable energy generation method helps farmers reduce carbon emissions due to less reliance on fossil-fuel-powered grid electricity. This directly lowers Scope 2 emissions, contributing to Net Zero goals, and means farmers will have improved ESG reporting and compliance with sustainability requirements.

Agrivoltaic systems also support favourable microclimates for crops and livestock, improving soil protection, protecting against heat stress and reducing water evaporation under shaded panels. These environmental benefits enhance a farm’s reputation with buyers and supply chains, supporting long-term commercial competitiveness.

Agricultural Considerations Before Investing

To maximise productivity, it’s important to understand which crops benefit most from, or tolerate, shading and which crop rotation schedules will need adjusting. Certain crops thrive, such as leafy greens, some cereals and shade-tolerant vegetables.

Elevated panels can allow grazing by sheep, goats or poultry underneath so farmers can combine energy generation with agricultural production without displacing animals. Remember, panel placement must allow access for irrigation, machinery and harvesting too.

Agrivoltaics present a compelling opportunity for UK farmers with large landholdings, by combining solar energy generation with agricultural production. Careful planning and expert installation are essential to fully reap the benefits – which is where Noble Green Energy come in.

We can help you maximise both financial returns and environmental impact, as we have for many previous clients, so get in touch with us today.