Solar Panel Funding for Farmers, Growers and Land Managers

by Stephen Hendy, Operations Manager Solar & Storage | published 6 March 2024

At the National Farmers Union (NFU) Conference held in Birmingham, Prime Minister Rishi Sunak disclosed a comprehensive package of support initiatives aimed at bolstering the agricultural sector in the United Kingdom. Despite clarifying that there would be no additional financial resources allocated to the sector, Sunak revealed a significant increase in grant funding, a move designed to alleviate some of the economic pressures faced by farmers across the country.

The funding, as outlined by the Department for Environment, Food and Rural Affairs (Defra), is set to increase from £91 million to approximately £220 million. This augmentation is part of a broader strategy to achieve the government’s spending target of £2.4 billion for the current parliamentary period.

In his speech, Sunak emphasized the multifaceted nature of the support, which includes not only financial boosts but also measures aimed at reducing operational costs for farmers. Among these is the promotion of energy-saving initiatives such as the installation of rooftop solar panels, which are expected to play a dual role in reducing energy expenses and protecting arable land for future food production. The Prime Minister also highlighted the intention to enhance support for on-farm processing, packing, and retailing activities.

Addressing the assembled delegates, Sunak acknowledged the unprecedented challenges faced by the farming community, particularly in the context of global price surges for essential inputs like fuel and fertiliser. He outlined the government’s efforts to combat inflation, noting a significant reduction from 11.1% to 4%, and announced an average 10% increase in payments under existing farming schemes as a direct response to these challenges.

In an effort to bolster the sector’s sustainability, Sunak promised further enhancements to the government’s Sustainable Farming Incentive (SFI) schemes. This includes a doubling of management payments, which could result in an additional £1,000 for farmers participating in these programs. Moreover, the extension of the scheme scheduled for July is expected to simplify the application process, making it more accessible for those engaged in countryside stewardship efforts.

The Prime Minister also took the opportunity to outline plans for regulatory reform aimed at facilitating farm diversification. He announced modifications to the rules governing permitted development rights, with the objective of streamlining the process for farmers looking to expand their operations into areas such as farm shops, commercial spaces, and sports venues. This move is seen as a crucial step towards reducing the bureaucratic barriers that often hinder the agricultural sector’s ability to innovate and diversify its income sources.

Sunak’s announcements reflect a comprehensive approach to supporting British farming, acknowledging the sector’s critical role in the economy, employment, and food security. By increasing financial support, easing regulatory constraints, and promoting sustainable practices, the government aims to ensure that the agricultural sector remains robust and capable of meeting the challenges of a rapidly changing global landscape.

If you’re a farmer or landowner interested in solar panels, please get in touch with our Energy Team.