Sectors · Farms & agriculture
Solar Panels and PPAs for Farms and Agriculture
Last updated 15 October 2026 · Figures indicative
Short answer: Farms suit solar where there is a steady daytime load — milking, cooling, grain drying, irrigation or on-farm cold stores — and large barn roofs or spare land. Roof-mounted systems are simplest; ground-mounted arrays need planning permission and a land agreement.
Why farms & agriculture suits solar
- Dairy cooling and milking create a consistent daily load.
- Grain drying and irrigation peak in sunny months.
- Large agricultural buildings offer unshaded roof space.
- Ground-mount can add capacity where land is available.
Typical system size and savings
A 300-cow dairy farm with a 100kWp system, using 250,000 kWh a year. Generation at 950 kWh/kWp, 70% used on site, grid at 26p/kWh and a PPA at 12p/kWh.
| Measure | Result |
|---|---|
| Annual generation | 95,000 kWh |
| Solar used on site | 66,500 kWh (27% of demand) |
| Year-1 PPA saving vs grid | £9,310 |
| Carbon avoided | ≈19 tCO₂e/yr |
Grid rate within 24–28p/kWh (August 2026); PPA rate within 10–14p/kWh; carbon factor 0.2 kgCO₂e/kWh. Exported power is normally the provider's.
Roof and site considerations
- Fibre-cement barn roofs may contain asbestos and may be fragile.
- Livestock buildings need corrosion-resistant mounting.
- Rural grid capacity is often limited; check with the DNO early.
- Ground-mount needs planning permission and suitable access.
Funding options for farms & agriculture
Farm businesses often buy roof systems and claim capital allowances. Larger ground-mounted schemes may use a PPA or land lease with a developer. Check how solar affects agricultural property relief and business rates. Compare routes in our commercial solar finance guide and the PPA vs buying comparison, or read our complete guide to solar PPAs.
Sector-specific risks
- Grid constraints: rural networks may limit export or require upgrades.
- Seasonality: demand can vary sharply through the year.
- Land use: ground-mount affects land agreements and possibly tax reliefs.
Related sectors
Solar for farms & agriculture: FAQs
Do farm solar panels need planning permission?
Roof-mounted systems on agricultural buildings often fall under permitted development, subject to conditions. Ground-mounted arrays usually need full planning permission.
Is a dairy farm a good fit for solar?
Often yes. Milk cooling and milking create a daily load that solar can supply, and dairy buildings usually have large roofs. A battery can help cover morning and evening milking.
Can a farm sell solar power to the grid?
Yes, through a Smart Export Guarantee tariff or an export PPA, though export prices are much lower than the cost of buying grid power. Using power on the farm is usually worth more.
What if the local grid is constrained?
The DNO may limit how much you can export. An export-limited (G100) design or a battery lets you install a larger system while staying within the limit.
Sources
- GOV.UK — Greenhouse gas reporting: conversion factors (DESNZ)
- legislation.gov.uk — The Non-Domestic Rating (Plant and Machinery) (Amendment) (England) Regulations 2022, SI 2022/405
- HMRC — Capital allowances: Annual Investment Allowance and first-year allowances
- Energy Networks Association — G98 and G99 connection requirements
- European Commission JRC — PVGIS photovoltaic yield tool
Price ranges for larger systems, running costs, batteries and PPA rates are indicative market ranges from UK installer, funder and market sources; no official series exists above 50kWp.
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