Do I need planning permission to build a solar farm on agricultural land?

You’ll generally need planning permission to develop a commercial ground-mounted solar farm on agricultural land. However, some smaller installations may qualify for permitted development rights, depending on their size, location, and other circumstances. Different rules can apply to panels installed on existing agricultural buildings. In England, certain non-domestic rooftop solar installations are covered by permitted development rights, subject to conditions. Planning regulations vary across the UK, so check the requirements with your local planning authority before starting work. You’ll also need to consider grid connection, landscape impact, and the agricultural quality of the land.

Does farm insurance cover damage to solar panels from storms or hail?

Farm insurance may cover storm or hail damage to solar panels, but this depends on your policy. Some insurers include renewable energy installations within wider agricultural insurance arrangements. Others may require specialist cover or a policy extension. Check that your solar panels are specifically included in your cover and that the relevant risks are insured. You’ll also need to understand any exclusions, excesses, and conditions relating to installation and maintenance.

What maintenance do farm renewables require?

Maintenance requirements vary between technologies. Solar PV systems generally require periodic inspections, checks of electrical connections, and cleaning where necessary. Wind turbines require more extensive servicing, including inspections of moving parts and mechanical components. Biomass boilers need regular cleaning, ash removal, and servicing, while fuel storage conditions must be monitored. Anaerobic digestion plants typically require continuous operational monitoring, routine servicing, and specialist inspections of gas-handling equipment. Whatever system you install, follow the manufacturer’s maintenance recommendations and keep records of inspections, servicing, and repairs. These records can help demonstrate that you’ve maintained the equipment appropriately if you need to make an insurance claim.

Understanding the opportunities, risks, and insurance for renewable energy on farms

Why UK farms are turning to renewable energy

Farming is energy intensive. Depending on your operation, you might need substantial amounts of electricity for refrigeration, milking equipment, grain drying, ventilation, or other machinery.

Producing your own energy not only reduces your dependence on the grid, but it can also make your operating costs more predictable. Renewable energy installations can also create opportunities to sell electricity or earn rental income from land.

In recent years, government policy has pushed for investment in renewable energy to help achieve net zero greenhouse gas emissions by 2050. This, in turn, has increased the focus on cleaner energy production, including in agriculture.

Financial assistance has also been available for renewable energy projects. For example, England’s Improving Farm Productivity grant previously offered funding towards solar photovoltaic (PV) installations, although that application round has closed.

You can check current funding opportunities for England online. Information about agricultural grants and support is also available for Scotland, Wales and Northern Ireland.

However, remember that investing in renewable energy is just one way to develop your business beyond traditional agricultural activities. You might also want to explore other farm diversification ideas at the same time.

Four main types of renewable energy used on farms

The most appropriate renewable energy system for your farm will depend on your location, energy needs, available space, and budget. Below are the four main options to consider. 

Solar PV systems (roof and ground-mounted)

Solar photovoltaic (PV) panels convert sunlight into electricity you can use on your farm or export to the grid.

Agricultural buildings can provide suitable locations for solar panels. Large barns, livestock sheds, and storage buildings may have extensive roof areas in relatively unshaded areas. If you’re considering roof-mounted panels, you’ll need to establish whether the building can support their weight. The roof’s condition, construction and remaining lifespan are also important.

Alternatively, ground-mounted panels can be installed on suitable land, including areas with limited agricultural productivity.

Solar PV systems require relatively little maintenance and can generate electricity over the long term. However, their output varies with daylight hours and weather conditions. You’ll generally produce more electricity during summer, which may not coincide with when you have the highest electricity demand, although surplus energy can be exported to the grid.

Wind turbines

Wind turbines convert wind energy into electricity, making them well suited to farms in exposed rural locations.

Depending on your requirements, you could install a single small or medium-sized turbine to supply electricity for your agricultural operations and export any surplus.

Unlike solar panels, wind turbines can generate electricity at night and may produce more power during the windier winter months.

However, financial returns depend heavily on the weather. A professional assessment will help establish whether your site is suitable and how much electricity a turbine could realistically generate.

You’ll also need to consider planning restrictions, construction access, and ongoing servicing costs.

Biomass boilers

Biomass boilers generate heat by burning organic materials such as wood chips, wood pellets, or suitable energy crops, including miscanthus.

They can provide heating and hot water for farmhouses, offices, workshops, and livestock buildings.

Biomass may be particularly attractive if your farm has substantial heating requirements or access to a reliable supply of suitable fuel. Unlike solar or wind installations, biomass boilers need regular fuel deliveries, ash removal, cleaning, and servicing.

You’ll also need enough space to store fuel and keep it in a suitable condition for your boiler. Fuel quality is important. Excessively wet wood can reduce combustion efficiency and make it difficult for the boiler to maintain its operating temperature.

Anaerobic digestion (AD plants)

Anaerobic digestion uses microorganisms to break down organic materials in an oxygen-free environment. On farms, these materials can include slurry, manure, crops, and certain food wastes. AD plants can be particularly attractive to livestock farms that produce substantial quantities of organic waste.

The process produces biogas, which can be used to generate electricity and heat. Some installations also upgrade biogas into grid-suitable biomethane to feed into the national grid.

Anaerobic digestion produces another useful material called digestate. This contains plant nutrients and can be used as a fertiliser or soil conditioner, provided it meets the relevant regulatory requirements.

However, AD plants are complex installations requiring specialist equipment, ongoing monitoring, and careful management of the materials being processed.

What are the financial benefits to farmers?

Renewable energy can improve your farm’s finances in several ways, although returns depend on installation costs, operating expenses, and the amount of energy you produce.

Lower electricity bills

For many farms, the biggest financial benefit is using the energy they’ve generated rather than drawing from the grid.

For example, if your farm uses substantial amounts of electricity during daylight hours, solar panels could provide a useful proportion of that demand.

You may also benefit from installing battery storage, which lets you store surplus electricity for later use. However, batteries add to your initial investment, so you’ll need to decide whether the additional savings justify the cost, including compared with the income you’d receive for exporting.

Income from exporting electricity

If you generate more electricity than you need, you may be able to sell the surplus.

In the UK, the Smart Export Guarantee (SEG) requires participating electricity suppliers to offer payments to eligible small-scale generators.

Qualifying technologies include solar PV, wind turbines, and anaerobic digestion. Installations must meet the scheme’s technical and eligibility requirements and generally cannot exceed 5MW of installed capacity. Export rates vary between suppliers, so it’s worth comparing tariffs.

The Smart Export Guarantee (SEG) operates in England, Scotland, and Wales. Northern Ireland has separate electricity market arrangements under the Single Electricity Market, shared with the Republic of Ireland.

Larger renewable energy projects may need to negotiate commercial electricity sales agreements.

Diversification income

Renewable energy can turn suitable land or buildings into additional sources of income.

You might choose to own and operate an installation yourself and receive revenue from electricity sales. Alternatively, a renewable energy developer may be interested in leasing part of your land for a solar farm or wind turbine.

A lease could provide regular payments without requiring you to finance or operate the equipment. However, long-term agreements restrict how you use your land for the contract term. Always seek appropriate legal and financial advice before entering into a contract, particularly if it affects agricultural tenancies or existing borrowing arrangements.

Greater protection against energy price increases

Producing your own electricity can reduce your exposure to energy price changes. This may be particularly valuable if your business has substantial electricity requirements or relies on equipment that must operate continuously.

However, renewable generation won’t necessarily eliminate your electricity bills. You may still need grid electricity when your installation isn’t producing enough power.

When calculating the potential savings, remember to account for maintenance costs, financing, insurance, and any electricity you’ll still need to purchase.

Savings from using agricultural waste

Anaerobic digestion offers an additional financial benefit if you produce substantial quantities of slurry or manure. Instead of relying entirely on purchased fuels, you can use these materials to help generate energy.

The digestate produced may also reduce your need for manufactured fertilisers.

However, you must weigh the savings against the costs of processing, storing, and transporting materials, along with the plant’s operating expenses.

Fire safety and hazards of farm renewables

Farms already face significant fire and machinery risks, particularly where buildings contain hay, straw, dust, fuel, or stored crops.

Renewable energy equipment can increase these risks or introduce hazards requiring additional precautions.

Solar panel electrical faults

Solar PV installations contain electrical cables, connections and components that can become damaged or deteriorate.

One potential hazard is a direct current (DC) arc fault. This occurs when electricity jumps across a gap in a damaged or poorly connected circuit, generating intense heat. An arc fault can start a fire if combustible materials are nearby.

Poor installation, defective connections, and damaged cables can increase the likelihood of electrical faults.

You can reduce these risks by using competent installers, arranging appropriate electrical inspections, and following the manufacturer’s maintenance recommendations.

Electrical components should also be kept clear of combustible materials, with suitable arrangements for emergency isolation.

Battery Energy Storage Systems (BESS)

Battery Energy Storage Systems store electricity for later use. They’re increasingly installed alongside solar panels and wind turbines to make better use of the power generated. Many systems use lithium-ion batteries, which require particular attention to fire safety.

If a battery becomes damaged, overheats, or develops an internal fault, it can experience thermal runaway. This is a process in which rising temperatures trigger further chemical reactions, potentially causing a serious fire. Battery fires can be difficult to extinguish and may release hazardous gases.

Consequently, the location and design of a battery installation are especially important. You’ll need to consider appropriate separation from occupied buildings and combustible materials, ventilation, fire detection, and emergency access.

The installation should also incorporate suitable battery management and protective controls.

Before purchasing a BESS installation, discuss the proposed design and location with your insurer, as additional safety measures may be required.

Biomass combustion and fuel storage

Biomass installations present risks associated with combustion, hot surfaces, fuel handling, and combustible dust.

Stored biomass can also overheat under certain conditions. Boilers therefore need appropriate protection to prevent heat or flames travelling back into the fuel supply.

Another significant concern is carbon monoxide. The Health and Safety Executive warns that wood pellets can release carbon monoxide while in storage. Dangerous concentrations may accumulate in enclosed spaces, even when the boiler isn’t operating. Entering an inadequately ventilated pellet store can therefore be life-threatening.

You should ensure fuel storage areas have suitable ventilation, warning signs, and access restrictions. Nobody should enter an enclosed pellet store without appropriate training, procedures, and precautions.

Boilers and fuel-handling equipment should also be installed and maintained by competent professionals.

Anaerobic digestion hazards

AD plants present particular risks because they produce and handle flammable biogas. Gas leaks, ignition sources, and failures in processing equipment can lead to fires or explosions.

Biogas may also contain hydrogen sulphide, which is highly toxic.

Safe operation requires appropriate gas detection, pressure controls, ventilation, emergency shutdown arrangements, and regular inspections. Employees and contractors must also understand the hazards and receive suitable training.

Professional risk management services can help you assess potential hazards, review fire precautions, and establish appropriate safety procedures.

Insurance implications when protecting your green energy investment

Renewable energy installations can represent a substantial capital investment. Depending on their size and complexity, projects may cost tens or hundreds of thousands of pounds, with some commercial installations costing considerably more.

Although farm insurance protects renewable energy equipment, you shouldn’t assume your existing policy automatically covers it.

Declaring renewable energy installations

Before installing renewable equipment, contact your insurance broker or insurer to explain what you’re proposing. You’ll need to provide details of the technology, its location, value, and intended use. Your insurer may also request technical specifications, installation details, and information about the surrounding buildings or land and impose strict requirements to be incorporated into your build.

Once cover has been agreed, the installation should be specifically included in your policy documentation, with appropriate sums insured.

Failing to disclose a significant change to your business could affect your insurance protection, particularly if it’s relevant to a subsequent claim.

Involving your insurer before installation

Early discussions are especially important if you’re planning to install a renewable energy system.

Insurers may have specific requirements concerning equipment design, location, and safety systems. For example, they might require a minimum separation distance between a biomass boiler and combustible materials, or particular fire protection arrangements for battery storage.

If you approach your insurer only after completing the installation, you may discover that expensive modifications are needed before they can provide cover. In some cases, insurance may be difficult to obtain at all.

Involving your broker or insurer during the planning stage helps you identify these requirements before you begin your build.

Property damage and machinery breakdown

You’ll need appropriate insurance for the renewable energy equipment itself. Depending on the policy, property damage cover may protect against events such as fire, flood, storm damage, or theft.

However, standard property damage insurance doesn’t necessarily include internal mechanical or electrical breakdown. For example, a turbine gearbox failure or damage to machinery within an anaerobic digestion plant may require specialist machinery breakdown cover.

It’s important to understand which events are insured, whether exclusions apply, and how the equipment would be valued following a loss.

Business interruption insurance

Damage to renewable energy equipment can have financial consequences beyond repair costs. For example, if a fire destroys your solar installation, you may need to buy more electricity from the grid until it’s repaired. If you export electricity, you’ll also lose the income it would have generated.

Similarly, a serious breakdown at an AD plant could interrupt energy production and other activities that depend on the installation. Business interruption insurance can help protect against financial losses following an insured event, subject to the cover selected and policy terms.

When reviewing your requirements, consider whether the policy covers lost export income, increased electricity purchasing costs, and an appropriate period for repairs or replacement.

Public liability insurance

Renewable energy installations can create risks for people outside your business. For example, a wind turbine could cause injury or property damage if a component becomes detached. Ground-mounted solar installations may also present hazards if they’re accessible to members of the public.

These considerations are particularly important if your installation is near public footpaths, rights of way, or neighbouring properties.

Public liability insurance can provide protection against your legal liability for accidental injury to third parties or damage to their property. Your insurer will need to understand the nature and location of your renewable energy activities to arrange appropriate cover.

FAQs

Protect your farm’s renewable energy investment

Renewable energy can help you reduce operating costs, generate additional income, and use your land more effectively. However, it’s important to understand the potential risks and arrange suitable insurance protection.

Alan Boswell Group’s agricultural insurance specialists can help you assess your requirements, understand insurers’ expectations, and arrange appropriate farm insurance for your business. Get in touch today to discuss your renewable energy plans.

Speak to us: 01603 967967

Understanding the opportunities, risks, and insurance for renewable energy on farms

In this article

In this article

Why UK farms are turning to renewable energy

Four main types of renewable energy used on farms