Many UK poultry farmers are choosing to install solar panels to reduce energy consumption, and therefore electricity bills, and to generate income from surplus power sold back to the grid. Did you know that the annual solar panel ROI for commercial solar PV is around 25-35%?

To make solar installation even more financially compelling for poultry farmers, there are a number of tax incentives and benefits available. At Noble Green Energy, we specialise in commercial and agricultural solar solutions, so we can help farmers navigate essential considerations and maximise their return on investment.

Are Solar Panels Tax-Eligible Assets?

Yes! Solar panels, battery storage and associated infrastructure are usually classified as plant and machinery for tax purposes. This means that they are eligible for capital allowances and the cost of equipment can be written off against profits in the year the system is installed and ready for use.

It’s important to remember that the tax relief is only triggered when the solar panel system is fully installed and operational – not when the deposit is paid. Organising installation dates carefully can ensure allowances are claimed in the most financially beneficial tax year for maximum efficiency.

Make sure to consider:

Financial year-end planning (e.g. 31^st March)
Cashflow implications of large upfront payments
Coordination with other capital projects or benefits to optimise overall tax efficiency
Finance solutions to support your investment

Solar Power Tax Benefits for UK Poultry Farmers

Annual Investment Allowance (AIA)
First Year Allowance (FYA)
Structures & Buildings Allowance (SBA)

1. Annual Investment Allowance (AIA)

With AIA, agribusinesses can claim up to £1 million per year in capital allowances which, in most cases, allows the full cost of solar installations to be offset against profits in the same year. Without this, solar panels would typically fall under the “special rate pool” which allows only 6% of the asset’s value to be written off annually.

2. First Year Allowance (FYA)

Additional reliefs, such as the First Year Allowance, allow incorporated businesses to deduct up to 50% of new solar installations within the first year. Following this, the remainder is written down at 6% per year; however, there are limitations.

FYA cannot be combined with AIA for the same assets and “full expensing” allowances for other farm machinery do not apply directly to solar panels. Therefore, poultry farmers need to consider which relief provides the greatest benefit.

3. Structures & Buildings Allowance (SBA)

If farm buildings, such as poultry sheds, are newly constructed or significantly renovated, then an SBA may apply. Farmers can typically claim 3% per year on qualifying building expenditure if they paid for some or all of the costs towards the purchase, construction or renovation of the structure. This can help offset the cost of building work associated with solar panels e.g. roofing or strengthening work. SBA applies to the building, not the solar panels themselves.

Wider Financial & Sustainability Benefits of Solar Panels for Poultry Farms

Solar panel installations provide access to valuable tax incentives that can improve cashflow and reduce project payback periods. Beyond the financial benefits, solar helps poultry farmers reduce exposure to volatile energy markets and strengthen ESG performance, including progress towards Scope 1, 2 and 3 carbon-reduction goals.

At Noble Green Energy, we understand that the initial investment of solar panels can be overwhelming, but we’re here to help farmers navigate the financial aspects, as well as technical factors, of commercial solar PV. Our expert project management services cover profitability and environmental responsibility, so you know your site is in the right hands. Contact us today to discuss your requirements.

Disclaimer: Finance details we may provide is for your information only and intended for businesses, it is not advice or recommendation to engage with a finance provider. We make no representations or warranties as to status or suitability of any finance provider, the products or services, or information provided, any reliance you chose to place on the information is done so at your own risk (and we will not be liable for any losses or damages in relation to the same). Noble Green Energy is not FCA authorised and regulated under the UK’s Financial Services & Markets Act 2000 as it is not a lender, nor does it carry on regulated activities related to credit broking.

Published

November 28, 2025