Investing in Solar Power for Your Farm: Is It Worth the Cost?

For many farms, rising and unpredictable electricity costs have made solar power increasingly worth considering.

Generating electricity on-site could reduce reliance on the grid, lower operating costs and create value over many years.

But that does not automatically make every solar project a good investment.

Those benefits depend heavily on the individual farm, how and when it uses electricity and the way the solar system is designed.

Before making a significant investment, farmers need more than headline savings figures or rough projections. They need to understand whether the numbers genuinely work for their business.

What Should You Consider When Assessing Solar Power for Your Farm?

Many solar conversations begin with the roof. 

How much space is available?

How many panels will fit?

How much energy will they generate?

These are sensible questions, but they aren’t necessarily the most important ones.

The better question is this:

What value could that electricity create for your business?

Because solar isn’t really about panels. Panels are simply the mechanism. The commercial value comes from the electricity they generate and how that electricity interacts with your farm’s operations.

For one farm, that value may come almost entirely from reducing purchased electricity. For another, export income may form part of the picture. For a third, the biggest benefit may be protection from future energy price rises and greater certainty over operating costs.

This is why experienced investors start with the numbers rather than the technology. They want to understand the asset before they decide whether to buy it.

How Can Solar Make Better Use of Your Farm Buildings?

Traditionally, farm businesses have assessed assets based on what they contribute to the operation.

Land generates crops, livestock generates income and buildings support production.

Solar introduces an interesting question – could certain buildings become productive assets in their own right?

This was one of the ways a potato farming business in Norfolk approached its solar project.

Rather than simply viewing solar as a renewable energy initiative, the system was assessed as a commercial investment. Available roof space across agricultural buildings was evaluated based on its ability to generate electricity, offset purchased power and create long-term value for the business.

The resulting 331kWp installation is expected to generate almost 294,000kWh of electricity each year and deliver estimated annual savings of more than £66,000.

What’s interesting isn’t the size of the system. It’s the thought process.

The project wasn’t driven by a desire to install solar panels. It was driven by a desire to understand what return a previously underutilised asset could generate.

That’s an important distinction because it changes the discussion from technology to business performance.

How Can Farms Fund a Solar Power Investment?

For many years, one of the biggest barriers to solar was the upfront investment required. That’s no longer necessarily the case.

Today, farms have several routes into solar, each with different advantages depending on the circumstances of the business.

Buying a system outright often delivers the strongest long-term return because the farm owns the asset from day one and benefits fully from the electricity it generates. Other businesses prefer asset finance, allowing them to spread the cost while preserving capital for land, machinery or operational investments.

Power Purchase Agreements (PPAs) offer another route. Under a PPA, a third party funds and owns the solar installation while the farm purchases the electricity generated at an agreed rate, often below prevailing grid prices.

The challenge is that the right answer depends entirely on the numbers.

A funding route that makes perfect sense for one farm may be completely wrong for another. That’s why any serious evaluation should compare multiple funding options rather than assuming a single approach.

The objective isn’t simply to fund the project but to identify the structure that delivers the strongest outcome for the business.

What Role Can Exported Electricity Play in Your Solar Investment?

When farmers first look at solar, they often focus on the electricity they will use themselves.

That’s understandable. Every unit of electricity generated and used on-site is a unit that doesn’t need to be purchased from the grid. But that’s only part of the story.

Depending on how a farm uses electricity, there may be periods when the solar system generates more power than the site needs. That surplus electricity can potentially be exported.

For some projects, export income plays only a minor role. For others, it can make a meaningful contribution to the overall financial case.

The key point is that export income should never be treated as a generic assumption.

Its value depends on factors such as:

• How much electricity is generated
• How much is used on-site
• Export tariffs
• Seasonal demand patterns

• Future growth plans

This is one of the reasons why generic ROI calculators can be misleading. Two farms with similar roofs may have very different export opportunities. Without understanding the actual energy profile of the business, it’s impossible to know what role exports are likely to play.

How Valuable Is Solar-Generated Electricity to Your Farm?

Many solar proposals focus heavily on annual savings.

A more useful question is often:

What does your electricity actually cost?

Most farms currently purchase electricity from the grid at rates that have increased significantly over recent years. The problem is that those costs remain largely outside your control.

Solar changes the equation because it allows a portion of your electricity to be generated on-site. The discussion then shifts away from buying energy and towards producing it. That’s an important mindset change.

Instead of asking how much electricity costs today, you begin asking what it could cost over the lifetime of a solar asset.

This is one of the reasons many agricultural businesses are increasingly interested in solar. Not simply because it reduces costs now, but because it offers a degree of long-term certainty in an area of the business that has become increasingly unpredictable.

Is Payback Period Enough to Judge a Solar Investment?

Ask most people how they assess an investment and they’ll mention payback period.

It’s easy to understand. Invest money today and recover it in a given number of years. The problem is that payback only tells part of the story. Imagine two projects with identical payback periods.

One continues generating substantial value for decades. The other performs less effectively over time. The payback figure alone won’t tell you the difference. This is why many financial models look beyond payback and examine the lifetime cost of generating electricity.

The term often used is Levelised Cost of Energy, or LCOE.

Despite the technical name, the principle is straightforward. Instead of focusing solely on when you recover your investment, LCOE looks at what each unit of electricity costs to generate over the lifetime of the system. That can provide a much more useful basis for comparison because it focuses on long-term value rather than a single milestone.

Payback still matters. But it shouldn’t be the only metric driving the decision.

Why Can Solar Return Projections Be Misleading?

Because many of them are built around averages. And farms rarely behave like average businesses.

This is where many investment decisions start to go wrong.

An arable farm running grain drying equipment has a very different consumption profile from a dairy farm. A poultry operation behaves differently again.

Seasonal demand can vary significantly, export assumptions can vary significantly and battery performance can vary significantly.

Yet many proposals are still built using broad assumptions rather than detailed analysis. The result is often a projection that looks attractive but doesn’t necessarily reflect reality.

This doesn’t mean the proposal is deliberately misleading. It simply means that important variables haven’t been properly considered.

Good decisions require good information.

Before investing significant capital, you need confidence that the figures are based on how your farm actually operates, not how an average business operates.

That’s precisely why we produced our guide, Does Your Solar ROI Sound Too Good To Be True?

It explains some of the most common assumptions used in commercial solar modelling and how to assess whether the numbers genuinely stack up.

How Can You Tell If Solar Is a Good Investment for Your Farm?

Ultimately, that’s the question every farm business is trying to answer. Unfortunately, there isn’t a shortcut.

Online calculators can provide broad guidance. Generic proposals can provide rough estimates. Neither can tell you what solar is likely to achieve for your business.

The only reliable way to answer that question is through a Solar Feasibility Analysis. A Solar Feasibility Analysis examines your actual energy data, operating patterns, tariffs, export opportunities, funding routes and long-term objectives.

Rather than relying on assumptions, it uses real information to build a financial picture of the opportunity in front of you. For some farms, that analysis reveals a compelling investment case. For others, it highlights areas that need further consideration.

Either way, it provides something every good investment decision relies on: Confidence in the numbers.

Frequently Asked Questions

Can solar power generate income for farms?

Yes. Depending on the system design and export arrangements, some farms generate income by exporting surplus electricity back to the grid in addition to reducing purchased electricity.

Is exported electricity worth anything?

It can be. The value depends on export tariffs, generation levels and how much electricity is used on-site versus exported.

What is a good payback period for farm solar?

There is no universal answer. Payback depends on energy consumption, funding arrangements, electricity prices and system design. It should be considered alongside wider financial metrics rather than in isolation.

Is payback the best way to compare solar investments?

Not necessarily. Metrics such as Levelised Cost of Energy often provide a broader understanding of long-term value.

What is a Solar Feasibility Analysis?

A Solar Feasibility Analysis uses actual energy data to assess potential savings, export opportunities, funding routes and return on investment before a project proceeds.

Can a Solar Feasibility Analysis compare different funding options?

Yes. A robust Solar Feasibility Analysis should assess multiple funding scenarios to identify the option that best aligns with the objectives of the business.

Request a Solar Feasibility Analysis

Every farm is different. Different energy usage patterns. Different operating models. Different priorities.

That’s why generic assumptions are rarely enough to support a major investment decision.

A Solar Feasibility Analysis uses your actual energy data to model potential savings, export opportunities, funding routes and long-term return on investment.

It provides the accurate information needed to evaluate solar power properly and move forward with confidence.

Request your Solar Feasibility Analysis today.

Power Different – Solar Energy Built For Business

Power Different designs and delivers engineered commercial solar and battery storage systems for businesses that need reliable performance and clear financial outcomes.

We don’t do rough estimates or off-the-shelf designs. Every system is built around your actual energy data, giving you accurate costs, savings and return on investment before you commit.

Our engineering-led approach means higher quality, better performance and systems built to last because in solar, the detail is what makes the difference between a strong return and an expensive mistake.

From feasibility through to installation and ongoing support, we manage the entire process, whether you are looking for commercial rooftop solar, ground-mounted solar, battery energy storage solutions or an upgrade to your existing solar.

Start with the numbers

Our no-obligation Solar Feasibility Analysis gives you a clear, evidence-based view of whether solar stacks up for your business.

Request your Solar Feasibility Analysis or contact our team today.

Not ready for a Solar Feasibility Analysis yet? Download our free guide: Does Your Solar ROI Sound Too Good To Be True?

Learn how to spot unrealistic savings claims, understand what drives solar ROI on farms and discover the questions every agricultural business should ask before investing.