Table of Contents:
Written by: Briain Kelly, Editor
Cost of solar panels for farms
The average cost of solar panels for a farm is around €50,000 for a 25 kWp system (~55 solar panels). This cost also includes solar battery storage of roughly 25 – 30 kWh.
This is the price before any SEAI or TAMS grants, and before the farmer reclaims VAT.
However, the price of agricultural solar panels will vary significantly between farms of different sizes and purposes.
Tip: The cost after government grants is the most important figure to bear in mind, as this will determine the payback period and return on investment.
What affects the cost?
Factors which affect the cost of commercial solar panels for farms include:
- System Size: The number of solar panels and inverters being installed.
- Multiple Buildings: If solar panels are installed on many different buildings instead of just one.
- Battery Storage: If you include battery storage and a disconnect switch for power outages.
- Groundworks: Any additional electrical and groundwork needed for ground-mounted solar panels.
- Technical Specifications: The strength and quality of the solar panels used.
- Grants: If you receive either the Non-Domestic Microgen or TAMS 3 grant.
Solar energy saves farmers thousands in electricity costs
How much can you save with farm solar PV?
Solar panels can reduce a farm’s electricity bills by more than 70% a year, saving thousands of euro in energy costs.
Example: A farm with a 25 kWp solar PV system could generate roughly 22,500 kWh of electricity in a year in Ireland. This could reduce your electricity bills by more than €7,000 each year.
This is a significant saving, and one that will only increase in value, as the cost of electricity for farms has risen by 68.5% since 2020 according to the CSO.
With a return on investment of 25% – 50%, solar panels on a farm can pay for themselves in as little as 2 – 4 years.
Grants for farm solar panels
There are two main sources of farm grants for solar panels. These are the Solar Capital Investment Scheme under the TAMS 3 programme and the SEAI’s Non-Domestic Microgen Grant.
These grants are awarded by different bodies and have different rules, maximum grant limits and eligibility criteria.
Farms are eligible for both grant schemes, but you can only apply for one or the other for a single holding.
TAMS 3
The TAMS 3 Solar Capital Investment Scheme can award up to 60% of the cost of solar panels for farms, up to an investment ceiling of €90,000.
- Farm size: The farm holding must be at least 5ha in size.
- Solar power output: Solar power output must not exceed the farm’s electricity usage.
- Electricity usage: Solar electricity must be primarily for self-consumption.
Non-Domestic Microgen
The Non-Domestic Microgen Grant is the SEAI’s main solar grant for buildings other than homes, up to a maximum of €162,600.
- Grant value: The grant is awarded based on the system size in kWp.
- Property age: The property must have been built and occupied before 2021 to qualify.
- Electricity usage: Solar electricity must be primarily for self-consumption.
Key Tip: Choosing the right grant
For most farmers, the TAMS Grant will be a better option since it can cover up to 60% of the cost of a solar PV system. However, for very large solar systems, the Non-Domestic Microgen Grant has a higher maximum grant value.
Is my farm suitable for solar panels?
Yes, almost all Irish farms are well suited to installing solar panels due to their large roofed buildings and large areas of land with little shading.
Farmhouses naturally put solar panels at the best angle for receiving sunlight. They can typically generate 900 – 930 kWh of electricity annually per kWp.
Farm sheds typically have sloped metal roofs with large, unobstructed surface areas. Solar panels for farm sheds can generate 840 – 870 kWh a year per kWp.
Milking parlours are often the ideal location for solar panels on dairy farms due to their large unobstructed roof area for solar panels.
Barns often offer a large roof area and a steeper pitch than other farm outbuildings. The greater angle improves solar PV output.
Farmland is typically free of shading, and solar panels can be placed at the optimal angle and direction. Ground-mounted solar panels may generate 900 – 930 kWh annually per kWp.
How much space do solar panels need?
The amount of space needed by solar panels depends on whether they are roof mounted or ground-mounted.
Ground-mounted: A ground-mounted solar PV system covers approximately 0.1ha for every 50 kWp of capacity.
Roof-mounted: A 50 kWp solar PV system, comprising 110 – 130 panels, requires roughly 250 – 300m² of roof space.
Key Tip: A farm on a single phase electricity supply will only be able to install roughly 25 kWp worth of solar panels.
Can farmers sell solar power back to the grid?
Farmers can sell any excess electricity generated by their solar PV system back to the grid thanks to the Clean Export Guarantee. Farmers will be paid a price per unit of exported power set by their electricity provider, with prices ranging from 15.2c – 25c per unit of electricity.
| Energy Supplier | Feed-in Tariff | Payment Schedule |
|---|---|---|
| Bord Gáis | 18.5c | Quarterly credit |
| Electric Ireland | 19.5c | Credit as per billing cycle |
| Energia | 18.5c | Credit as per billing cycle |
| SSE Airtricity | 19.5c | Quarterly credit |
| Pinergy | 25c | Monthly credit |
| Flogas | 18.5c | Bi-monthly credit |
| Community Power | 20c | Quarterly credit |
| Yuno Energy | 15.89c (Inc VAT) | Twice yearly credit |
| Prepay Power | 15.89c (Inc VAT) | Twice yearly credit |
| Bord Gáis |
|---|
| Feed-in Tariff: 18.5c Payment Schedule: Quarterly credit |
| Electric Ireland |
|---|
| Feed-in Tariff: 19.5c Payment Schedule: Credit as per billing cycle |
| Energia |
|---|
| Feed-in Tariff: 18.5c Payment Schedule: Credit as per billing cycle |
| SSE Airtricity |
|---|
| Feed-in Tariff: 19.5c Payment Schedule: Quarterly credit |
| Pinergy |
|---|
| Feed-in Tariff: 25c Payment Schedule: Monthly credit |
| Flogas |
|---|
| Feed-in Tariff: 18.5c Payment Schedule: Bi-monthly credit |
| Community Power |
|---|
| Feed-in Tariff: 20c Payment Schedule: Quarterly credit |
| Yuno Energy |
|---|
| Feed-in Tariff: 15.89c (Inc VAT) Payment Schedule: Twice yearly credit |
| Prepay Power |
|---|
| Feed-in Tariff: 15.89c (Inc VAT) Payment Schedule: Twice yearly credit |
How much you can earn from selling electricity back to the grid from farm solar depends on those prices, as well as how much is exported versus used on the farm.
Planning permission for solar panels on farms
Farms may be required to get planning permission for solar panels depending on where the farm is, the size of the solar PV system, and where the panels are being installed.
Solar panels on a farm are typically considered exempt from planning permission if they meet the following criteria:
| Solar panel type | Criteria |
|---|---|
| Rooftop solar panels |
|
| Ground-mounted panels |
|
| Wall-mounted panels |
|
Choosing an installer
Getting solar panels for your farm is a major financial investment, even with the help of grants. When choosing an installer you should consider the following factors:
- Material used: Solar panels will be producing electricity for 30+ years. Choose high-quality panels with good warranties.
- Customer satisfaction: An installer with a strong review history and many happy customers is a good indicator.
- Aftercare support: Check whether your installer offers ongoing support for any issues that arise after installation.
FAQs
Dairy farming, horticulture, and specialist pig and poultry farms use the most electricity in agriculture. Dairy requires extensive pumping and refrigeration for milk. Horticulture often needs automated irrigation and greenhouse climate controls. Pigs and poultry need indoor heating, lighting, and automated feeding systems.
Farmers can install solar panels specifically to export power on their own. This is less complicated if the system is no more than 1MW in capacity. Beyond that the regulations get more complicated.
Large energy companies will also commonly lease farmland with the intention of using it for a larger scale solar farm.
Solar panels on a farm in Ireland should produce between 850 kWh and 950 kWh each year per kWp of installed capacity.
It depends. For one farm holding you can only apply for one grant, either from the TAMS programme or the SEAI. However, if you have multiple separate farm holdings you can get a grant for each of them.
Solar battery storage is very worthwhile for farms since they have much larger solar PV systems than households. Farms may also use a great deal of electricity one day, and far less the next depending on the activities of the day. This can result in a great deal of excess solar energy.
Yes, farmers can claim tax relief on 100% of the cost of installing solar panels through the Accelerated Capital Allowance in the year in which they were purchased.
Yes, farms typically pay VAT on solar panels. The reduced rate of VAT should apply as long as the price of the goods and materials doesn’t exceed two-thirds of the total installation price.
Flat rate farmers can also reclaim the VAT they pay for solar panels, as long as they are primarily meant for supporting the farm.
A 0% VAT rate applies when having solar panels installed on a private dwelling on a farm, e.g. the farmhouse.
Farmers can typically get a 25% – 50% return on investment from solar panels, nearly double the 14% average for households. This is due to the better economy of scale on large solar PV for farms, and the greater proportion of the cost which can be covered by grants.
Solar energy saves farmers thousands in electricity costs
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