UK Farmers Reap Financial Advantages of Renewable Energy

As the United Kingdom’s National Farmers Union (NFU) Farm Energy Service celebrates its first anniversary, record levels of interest are being reported in renewable energy as a source of income among growers struggling to make ends meet.

Although England has invested hugely in wind and hydropower, among farmers, 52 percent of inquiries related to deployment of solar generation—perhaps because of the topology and location of their agricultural properties. Another 30 percent of renewable queries related to wind turbines, which can offer rates of return as high as 25 percent in blustery areas.

RenewableUK—a London-based organization that “acts as a catalyst for policy change to support the deployment of wind, wave and tidal energy”—suggests that most wind farm installations for 2012 were up to 80 kilowatts (kW), earning farmers between £12,000  and £50,000 (US$18,000 and  US$75,000) a year.

Specifically, over the past 12 months, of the 1,550 referrals received by the NFU Farm Energy Service, those in the renewable energy segment broke down to:

·         Solar–391,

·         Wind –227,

·         Anaerobic digestion (AD)– 20,

·         Hydro–11,

·         Air/ground source heat pumps– 23,

·         Biomass– 65, and

·         Planning enquiries and non-technology specific discussions made up the remainder.

In a year that saw crop yields reduced and productivity down to 1980s levels, renewable energy provided some much-needed support for British farms.

Dr Jonathan Scurlock, NFU chief adviser for Renewable Energy and Climate Change, commented: “[This past year,] 2012, was … difficult … for the farming community, with bad weather hitting incomes hard. Investing in renewable energy provides farmers and growers with additional earnings at a time when farm budgets have [been] very stretched.”

According to lending figures from the financial firms, NatWest and RBS, 40 percent of farmers interested in renewable energy are in the Midlands, followed by Scotland, the North East and the South West.

 Maria McCaffery, CEO of RenewableUK, said: “Farmers are experts at harnessing the Earth’s natural resources, so it’s no surprise that they are leading the way on wind energy. The UK has the most powerful wind resource in Europe and this has provided a vital source of income for farmers, helping to preserve rural communities in Britain.”