Solar panels, wind turbines, anaerobic digestion, and biomass heating can generate income and reduce energy costs. However, planning requirements vary dramatically by technology and scale.
The generous Feed-in Tariff and Renewable Heat Incentive schemes have closed, but modern projects can still be financially viable through self-consumption savings and export payments.
Planning permission for solar
Agricultural land classification
The government's National Planning Policy Framework discourages solar development on Best and Most Versatile (BMV) agricultural land. In practice:
- Grade 1-3a land - solar applications face greater scrutiny - national policy discourages, but does not prohibit, development on BMV land, and Natural England is consulted
- Grade 3b-5 land - solar applications have better prospects, though local policies vary
- Grade unknown - you may need an Agricultural Land Classification survey (£2,000-£5,000) to prove your land qualifies
Consider sheep grazing beneath panels (agrivoltaics) to maintain agricultural use and strengthen planning arguments.
Financial support
Building a business case
Modern renewable projects must stack up financially without generous subsidies. Base your business case on:
- Self-consumption savings - value of displacing grid electricity at 20-30p/kWh
- Export payments - SEG rates vary widely by supplier - the best fixed tariffs pay around 12-16.5p/kWh in 2026 (shop around)
- Tax reliefs - claim capital allowances on solar through the Annual Investment Allowance (100% up to £1 million) or, for companies, the 50% first-year allowance for special rate assets
- Long-term security - protection from rising energy prices over 20+ year system life
Avoid business cases relying on assumed electricity price increases or future subsidy schemes that may never materialise.
Grid connection
For installations above 3.68kW per phase (the 16-amp G98 limit), you'll need to apply to your Distribution Network Operator (DNO) for grid connection approval before installing. This can be a significant cost and delay factor:
- Application - submit G99 application to your DNO
- Timescales - allow 6-18 months for connection approval on larger schemes
- Costs - connection charges vary by location and capacity
- Constraints - some areas have grid constraints limiting new connections
Legal basis
Primary legislation and key regulations