Renewable energy cuts are “not all doom and gloom” and farmers should engage with the private sector to help fund future investment in green sources, according to the NFU.
The news comes as the Conservative government slashed subsidies for key renewable energy sources – including wind and solar – by 87 per cent, leading to crisis in the sector and at least three major solar panel companies to go bankrupt.
Jonathan Scurlock, chief renewable energy and climate change adviser for the NFU, said “clean energy is in the firing line” but farmers and growers still need to invest in renewables, and should explore other funding options.
“The options are growing, as the sector evolves, for instance, farmers not in a position to borrow money may be able to opt into a competitively-priced power purchase agreement, where they can expect to pay around seven or eight pence per unit, offering long-term savings,” he said.
“Opportunities in solar will be more competitively priced next year, and even though the margins are tightening for installers and developers, there are still attractive deals.”
Scurlock, who said the current government is flexing their muscles with this energy policy reset, claimed the renewable energy sector is maturing, and will be able to survive without government incentives.
And he urged the agri-industry to engage with “pro-business advocates that champion the green economy”. “The private sector should lead the transition to a low-carbon economy,” he added.
David Jacobmeyer, director of agricultural energy conference Energy Now Expo, said there’s an increase in ‘private wire agreements’, where farmers can sell the power they generate to local power users.
“Storage is another area that’s developing massively,” he said. “Historically there have been two options in terms of energy use; using it, and or selling it to the grid. Storage is the third option, with exciting ideas in development, such as having your own mini-grid on site, to store and use energy when needed.”
Jacobmeyer added: “Oil prices, as well as other heating and power bills will keep rising, farmers are working to tighter margins, and there’s a case for installing renewable energy initiatives not only for keeping down energy costs, and generating extra income, but also for numerous on site uses as well.”
Scurlock said that while the large-scale wind industry has negotiated some leeway with the government, smaller businesses looking to invest in wind will struggle without subsidies.
“The ending of ‘new subsidies’ for onshore wind means that the sector will have to move into subsidy free territory, and there is tougher planning guidance for all new wind turbine applications, where it needs to be subject to certain assessments,” he said.
“The real issue lies with farmers who want planning in England to install their own turbines, although the large scale wind industry has negotiated some leeway with the government.”
“Given the recent headlines on renewable energy subsidy cuts by the Conservative government a lot of UK farmers are unsurprisingly unsettled. But it’s not all doom and gloom.
“The renewable energy industry is now mature, and much more able to become self-sufficient.”
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