Farm Solar Panels & Grants in the UK
UK farmers can cut electricity costs by 40–60% with solar PV on farm buildings. The Improving Farm Productivity grant pays 25% of eligible rooftop solar costs, from £15,000 up to £100,000 per business, and the Annual Investment Allowance provides valuable tax relief, making farm solar one of the best capital investments in agriculture today.
Dairy parlours, grain dryers, poultry houses, and milking robots all run during daylight hours, exactly when solar panels generate the most electricity. With large shed roofs already available and rising agricultural electricity costs, farms are ideally suited to solar PV.
Published February 2026 · Last updated August 2026
Fact-checked by John Rooney, Solar Energy Editor. Editorial policy
Quick Answer
Farm solar panels in the UK cost £18,000–£100,000 depending on system size. The Improving Farm Productivity grant pays 25% of eligible rooftop solar costs, from £15,000 to £100,000 per business, when an application round is open (Round 2 has closed; a new round has not yet been announced). A typical 30 kWp dairy farm system costs around £25,000, saves £3,500–£5,500/year on electricity, and pays for itself in 5–7 years. The Annual Investment Allowance also allows full tax deduction in year one.
Why are farms ideal for solar panels?
Farms have three natural advantages for solar PV: high daytime electricity consumption, large unshaded roof areas on sheds and outbuildings, and rising agricultural electricity costs that make the payback faster every year.
High daytime usage
Milking parlours, bulk tanks, milk cooling, grain drying, ventilation fans, and water pumps all consume electricity during daylight hours, exactly when solar panels produce power.
Large shed roofs
Farm buildings typically have 200–1,000 m² of south-facing or east/west roof space. A single hay shed can accommodate a 50–100 kWp system without using any farmland.
Rising electricity costs
Agricultural electricity rates have increased significantly since 2021. A dairy farm spending £7,000–£13,000/year on electricity can offset 40–60% of that bill with solar PV.
What grants are available for farm solar panels in the UK?
The main grant for farm solar in England is the Improving Farm Productivity grant, administered by the Rural Payments Agency (RPA) under Defra. It pays 25% of the cost of eligible rooftop solar PV on farm buildings, with grants from £15,000 to £100,000 per applicant business. The £15,000 minimum means your project must cost at least £60,000 to qualify.
| Detail | Improving Farm Productivity: Solar PV |
|---|---|
| Grant rate | 25% of eligible costs |
| Grant amount | £15,000 minimum to £100,000 maximum (project cost of £60,000+) |
| Eligible installations | Rooftop solar on farm buildings and floating solar on irrigation reservoirs. Ground-mounted arrays, north-facing roofs, and heavily shaded roofs are excluded |
| Eligible items | Solar panels, inverter, mounting, wiring, battery storage |
| Who can apply | Farmers and horticulturalists in England (solar contractors cannot apply) |
| Status | Round 2 closed. A new round has not yet been announced; check the RPA website |
Does the FETF cover solar panels?
No. The Farming Equipment and Technology Fund (FETF) is a separate, smaller grant (£1,000–£25,000 per theme) covering productivity, slurry, and animal health and welfare equipment. Solar PV is not on its eligible item lists. The FETF 2026 round ran from 17 March to 12 May 2026 and is now closed. For solar, the Improving Farm Productivity grant is the relevant scheme.
AHDB guidance
The Agriculture and Horticulture Development Board (AHDB) provides guidance on farm energy efficiency, including solar PV. AHDB resources can help you assess suitability, review your energy usage, and plan your investment. Visit the AHDB website for farm energy advice.
Annual Investment Allowance
UK farmers can claim the Annual Investment Allowance (AIA) to deduct the full cost of solar PV from taxable profits in the year of purchase (up to £1,000,000). This significantly improves first-year cash flow and overall return on investment.
Check grant windows
Improving Farm Productivity grants open in competitive application rounds and close once the window ends. Round 2 is closed and no new round has been announced yet. Check the RPA website for new round dates and ensure your application is submitted before the deadline. Requirements may vary by round.
Tax relief for farm solar in the UK
Beyond the Improving Farm Productivity grant, UK farmers benefit from significant tax relief on solar PV investments. The Annual Investment Allowance (AIA) and the Smart Export Guarantee (SEG) combine to improve the overall financial return.
Key tax benefits
- Annual Investment Allowance (AIA), deduct 100% of solar PV costs from taxable profits in the year of purchase, up to £1,000,000.
- Smart Export Guarantee (SEG), earn income from surplus electricity exported to the grid. Rates vary by supplier but typically 4–15p/kWh.
- VAT at 0%, since April 2022, solar panel installations on residential properties have 0% VAT. Commercial farm installations attract 20% VAT, which VAT-registered farmers can reclaim.
Speak to your farm accountant about the specific tax advantages for your situation. The combination of a 25% grant and AIA tax relief significantly reduces the effective cost of farm solar.
How much do farm solar panels cost in the UK?
Farm solar panel costs in the UK range from £18,000 to £100,000 before grants, depending on system size and farm type. With a 25% Improving Farm Productivity grant (projects of £60,000+), out-of-pocket cost drops by a quarter, and AIA tax relief reduces it further.
| Farm Type | Typical System | Gross Cost (est.) | 25% Grant (if eligible) | Net Cost (est.) | Annual Generation |
|---|---|---|---|---|---|
| Dairy | 30–60 kWp | £25,000–£50,000 | £6,250–£12,500 | £18,750–£37,500 | ~27,000–54,000 kWh |
| Tillage | 20–40 kWp | £16,000–£33,000 | £4,000–£8,250 | £12,000–£24,750 | ~18,000–36,000 kWh |
| Poultry / Pig | 50–100 kWp | £38,000–£75,000 | £9,500–£18,750 | £28,500–£56,250 | ~45,000–90,000 kWh |
| Beef / Mixed | 10–30 kWp | £9,000–£25,000 | £2,250–£6,250 | £6,750–£18,750 | ~9,000–27,000 kWh |
Costs are estimates based on UK market rates in 2026. Actual costs vary by installer, roof condition, and system complexity. VAT at 20% applies to commercial farm installations (reclaimable for VAT-registered farmers). Note the Improving Farm Productivity grant only applies to projects costing £60,000 or more, so smaller systems shown here would not meet the minimum grant threshold.
What is the ROI on farm solar panels in the UK?
Farm solar panels in the UK deliver a typical payback of 5–7 years after grant and tax relief, with annual savings of £3,500–£12,000 depending on farm size and electricity consumption. The system continues generating free electricity for 25–30 years after payback.
| Saving / Income Source | Typical Value |
|---|---|
| Electricity bill reduction | 40–60% of annual bill |
| Milk cooling offset | £1,200–£2,500/year (dairy) |
| Grain drying offset | £800–£2,000/year (tillage) |
| Export income (surplus) | 4–15p/kWh (Smart Export Guarantee) |
| Annual Investment Allowance | 100% tax deduction in year one |
| Payback period (after 25% grant) | 5–7 years |
| System lifespan | 25–30 years |
Annual Investment Allowance
Farm solar qualifies for the Annual Investment Allowance (AIA), allowing farmers to deduct 100% of the cost against taxable profits in year one, up to £1,000,000. This significantly improves first-year cash flow.
Export income
Surplus electricity generated on weekends or during low-usage periods earns 4–15p/kWh through the Smart Export Guarantee (SEG). See our export payments guide for full details. Self-consumption gives a better return than exporting, as you avoid buying at 25–35p/kWh.
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Get a Quote ↓What size solar system does my farm need?
The right system size depends on your farm type and electricity consumption. The goal is to match solar generation to your daytime usage pattern, maximising self-consumption rather than exporting surplus at a lower rate.
Dairy Farm, 30–60 kWp
High, consistent daytime load from milking machines, bulk tank cooling, water heating, and parlour lighting. Two milking sessions per day align well with solar generation.
Typical annual usage: 30,000–60,000 kWh. Solar can offset 40–55%.
Poultry / Pig Farm, 50–100 kWp
Very high electricity demand from ventilation fans, climate control, lighting, and feed systems running 16–20 hours per day. Excellent self-consumption rates.
Typical annual usage: 60,000–150,000 kWh. Solar can offset 30–45%.
Tillage Farm, 20–40 kWp
Seasonal peak during grain drying (August–October), moderate base load from workshops and water pumps. Battery storage can help bridge seasonal mismatch.
Typical annual usage: 15,000–40,000 kWh. Solar can offset 35–50%.
Beef / Mixed Farm, 10–30 kWp
Lower electricity consumption than dairy or poultry. Main loads are water pumps, lighting, fencing, and workshop equipment. Smaller systems still deliver strong payback.
Typical annual usage: 8,000–25,000 kWh. Solar can offset 40–60%.
Rule of thumb: 1 kWp requires approximately 4–5 m² of roof space and generates ~900 kWh/year in the UK. Ask your installer for a site-specific energy assessment.
Do farm solar panels need planning permission?
Roof-mounted solar panels on farm buildings generally fall under permitted development rights in England and do not require planning permission. Ground-mounted solar on agricultural land may qualify for permitted development up to certain size limits. Rules vary slightly across England, Scotland, Wales, and Northern Ireland.
| Installation Type | Planning Required? | Notes |
|---|---|---|
| Roof-mounted (farm building) | Generally permitted development | Must not protrude more than 200mm from the roof slope; must not extend above the ridgeline |
| Ground-mounted (farmland) | Permitted development up to limits | Agricultural permitted development rights allow ground-mounted arrays subject to size and prior notification, check with your local planning authority |
| Listed buildings / conservation areas | Yes, always required | Listed farmhouses or buildings in conservation areas |
For larger commercial-scale systems, your installer handles the planning application. See our planning permission guide for full details.
Farm solar installation checklist
Here’s what to expect before, during, and after your farm solar installation.
Before installation
- Roof survey, structural assessment of shed roof
- Electrical survey, fuse board and meter location
- DNO grid connection application
- Grant application submitted (if a round is open)
- Clear access to shed roof and farm yard for scaffolding
During installation
- Mounting rails fixed to shed roof purlins (drilling noise)
- Panels, inverter, and wiring installed (2–5 days)
- Inverter usually mounted inside the shed or near the fuse board
- Minimal disruption to farm operations
- Livestock can remain in adjacent areas
After installation
- Smart meter installation (if not already fitted)
- Register for Smart Export Guarantee (SEG)
- Monitoring app setup, track generation vs usage
- MCS certificate issued for your installation
- Shift heavy usage (washing, drying) to sunny hours
How to get farm solar installed in the UK
The process involves assessing your energy usage, applying for available grants, choosing an MCS-certified installer, and connecting to the grid through your DNO. The full process takes 2–4 months from initial consultation to generating electricity.
Assess your energy usage
Review your electricity bills to understand your annual consumption and daytime usage patterns. AHDB provides farm energy assessment guidance, or your installer can carry out a site survey.
Apply for the Improving Farm Productivity grant (if a round is open)
Check the RPA website for the next Improving Farm Productivity round. Applications start with an online eligibility checker, then a full application with farm details, your Rural Payments reference number, and proposed system specification.
Get quotes from MCS-certified installers
Get 2–3 quotes from MCS-certified solar installers experienced with agricultural installations. Check the MCS Installer Database at mcscertified.com to find certified installers in your area.
DNO connection and installation
Your installer applies to your local DNO (Distribution Network Operator) for grid connection approval. Installation takes 2–5 days for a typical farm system. The inverter connects to your existing fuse board.
Register for SEG and start saving
After installation, register with an energy supplier for the Smart Export Guarantee (SEG) to earn income from surplus electricity. Set up your monitoring app and start benefiting from free solar power.
MCS certification is essential
Ensure your installer is MCS-certified. MCS certification is required for the Smart Export Guarantee, most grant schemes, and provides consumer protection. Check installer credentials at mcscertified.com.
Farm Solar Panels FAQ
What grants are available for farm solar in the UK?
The Improving Farm Productivity grant pays 25% of the cost of rooftop solar PV on farm buildings, from £15,000 to £100,000 per business (minimum project cost £60,000). Round 2 has closed and a new round has not yet been announced; check the RPA website. The FETF does not cover solar panels. You can also benefit from the Annual Investment Allowance for tax relief on the full cost.
Can I put solar panels on my farmhouse as well as the shed?
Yes, but they are treated as separate installations. The farmhouse may qualify for the domestic 0% VAT rate on solar, while the farm buildings are a commercial installation. Both can benefit from the Smart Export Guarantee.
Do I need planning permission for solar on farmland?
Roof-mounted panels on farm buildings generally fall under permitted development. Ground-mounted solar arrays on farmland may qualify for agricultural permitted development rights subject to size limits and prior notification, check with your local planning authority.
Can I reclaim VAT on farm solar panels?
Yes, if you are VAT-registered for farming. Commercial solar panel installations carry 20% VAT, which VAT-registered farmers can reclaim through their normal VAT returns. This effectively reduces the cost by 20% on the non-grant portion.
How long do farm solar panels last?
Solar panels have a typical lifespan of 25–30 years with performance warranties guaranteeing at least 80% output at 25 years. Inverters may need replacing once (after 10–15 years, costing £1,200–£2,500). Panels require minimal maintenance, occasional cleaning if dust or bird droppings accumulate.
Will solar panels power my farm at night?
No, solar panels only generate electricity during daylight. However, adding a battery storage system allows you to store daytime surplus for evening milking or overnight use. Without a battery, you draw from the grid at night as normal.
What happens to surplus electricity my farm doesn't use?
Surplus is exported to the grid and earns 4–15p/kWh through the Smart Export Guarantee (SEG). You need a smart meter to measure exports, your installer can arrange this with your DNO. However, using your own solar electricity is more valuable than exporting it.
What is the Smart Export Guarantee?
The Smart Export Guarantee (SEG) is an Ofgem-backed scheme that requires licensed energy suppliers to offer a tariff for exported solar electricity. Rates vary by supplier, typically 4–15p/kWh. Your installation must be MCS-certified to qualify.
Other Commercial Sectors
Solar works differently across commercial sectors. If farm solar is not the right fit, these related guides may help:
Commercial Solar Overview
General UK business solar: costs, AIA tax relief, ROI.
Hotels & Resorts
30–100 kW systems, 5–7 year payback.
Manufacturing & Industrial
100 kW–1 MW+ with highest self-consumption ratios.
Pubs & Hospitality
10–40 kW systems for restaurants, cafés, pubs.
Medical Centres
GP surgeries, clinics, private practices.
Related Guides
Largest Solar Farms UK
Top 10 UK solar farms ranked by capacity. Cleve Hill leads at 373 MW.
Commercial Solar
Solar panels for UK businesses: costs, capital allowances, and ROI.
Solar Panel Grants
Warm Homes grants up to £15,000, 0% VAT, Smart Export Guarantee, and business capital allowances.
Planning Permission
Permitted development, listed buildings, and when you need to apply.
Export Payments
Earn 3–15p/kWh with the Smart Export Guarantee.
Solar Panel Payback
Payback periods by system size, ROI calculations, and how to maximise returns.
Sources
- Defra / RPA, Improving Farm Productivity grant: applicant guidance
- Defra / RPA, Farming Equipment and Technology Fund (FETF) 2026
- Ofgem, Smart Export Guarantee (SEG)
- AHDB, Farm Energy & Efficiency Guidance
- MCS, Find a Certified Installer
Last updated: August 2026
John Rooney is the founder of Solar Info and has been covering the UK solar energy market since 2023. He researches every battery and inverter brand against manufacturer datasheets, MCS and Ofgem data, and feedback from the MCS-certified installers in our directory before publishing.
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Curious which farms have already gone solar? Explore our interactive UK solar farms map showing every mapped solar farm and large agricultural installation across the country, or see how the biggest sites compare in our ranked guide to the largest solar farms in the UK.