With energy costs continuing to fluctuate and sustainability requirements tightening, farms across the South East and East Anglia are increasingly turning to solar PV as a long term cost control strategy.
However, the previous Improving Farm Productivity Grant, administered by the Rural Payments Agency, closed to new applications in 2025. This means farmers now need to look at a broader mix of funding routes and financial strategies to support solar investment.
The opportunity is still strong – but the funding landscape has shifted.
Solar Remains a Strong Investment for Agriculture
Modern farming is energy intensive, from refrigeration and grain drying to water pumping and livestock systems. Installing solar allows farms to generate electricity on site, reducing exposure to volatile grid prices.
For most agricultural businesses, this delivers lower operating costs and greater energy independence, resulting in predictable overheads and improved long term margins. Even without direct capital grants, solar continues to offer strong ROI – especially when paired with smart financing.
What Funding Options Are Available Now?
While large capital grants for solar have reduced, several active support mechanisms remain available.
Capital Allowances and Tax Relief
Commercial solar installations may qualify for tax relief under schemes such as Annual Investment Allowance (AIA) or for full expensing. This enables businesses to offset installation costs against taxable profits, improving overall project returns.
Asset Finance and Power Purchase Agreements (PPAs)
With fewer grants available, many farms are turning to structured finance. Asset finance spreads the cost of installation over affordable monthly payments across 5-15 years. Power Purchase Agreements (PPAs) require little to no upfront cost, allowing you to pay a reduced amount for the electricity generated. These models are particularly attractive for large energy users with consistent demand.
Regional and Local Authority Funding
Some local councils and regional bodies periodically release Net Zero or rural development funding. Availability varies, but opportunities do arise. Due to the limited nature of these grants and funding options, the schemes are usually competitive, time limited and focused on carbon reduction and efficiency.
Sustainable Farming Incentive (SFI)
The Sustainable Farming Incentive forms part of the UK’s wider Environmental Land Management (ELM) programme. While it does not directly fund solar installations, it plays an important role in strengthening the financial position of farms considering capital investment.
SFI provides ongoing payments to farmers implementing sustainable land management practices, including soil health improvement, integrated pest management, nutrient planning and hedgerow and habitat management.
These payments can improve overall farm cash flow, creating predictable, stable income streams that support financing for capital projects such as solar.
What Can Solar Projects Include?
Most commercial farm installations today incorporate:
- Roof mounted solar PV systems
- Inverters and monitoring systems
- Battery storage
- Grid connection infrastructure
- Electrical upgrades where required
Ground mounted systems are still viable commercially, but funding (where available) is more commonly directed toward rooftop installations.
Key Considerations Before Installing Solar
- Roof suitability: orientation, structural integrity and available roof space
- Energy usage profile: daytime demand is ideal for solar
- Grid capacity: export limitations can impact system design
- Planning constraints: especially for listed or protected buildings
A well designed system should align with how your farm actually uses energy – not just maximise panel count.
Long Term Benefits for Farms and Rural Estates
- Reduced energy spend – generate electricity on site and reduce reliance on the grid
- Improved financial resilience – protect your business from long term energy price volatility
- Additional income potential – export surplus energy through Smart Export Guarantee agreements
- Stronger environmental credentials – support supply chain requirements and sustainability targets
- Future proof infrastructure – easily integrate EV charging, automation and battery storage
How Silvercrest Energy Group Can Help
Silvercrest Energy Group works with farms, estates and commercial landlords across the South East and East Anglia to deliver practical, financially viable solar solutions.
We provide:
- Site assessments and yield forecasting
- Guidance on available funding and financial models
- System design tailored to agricultural operations
- Full installation and grid connection
- End to end project delivery
Our focus is simple: deliver systems that reduce costs and perform commercially over the long term.
Take the Next Step
Although the funding landscape has evolved, combining SFI income, tax efficiencies, and structured finance still creates a strong case for solar investment.
If you’re planning a project, early assessment is key to securing the best outcome.
Contact Silvercrest Energy Group to explore your options and move forward with a system designed around your farm or estate.
