Agriculture & Farming UK-wide

Install renewable energy on your farm

How to get planning permission and financial support for solar panels, wind turbines, and other renewable energy on agricultural land. Covers permitted development limits, agricultural land classification, and the Smart Export Guarantee.

Guide summary

Check if your farm needs planning permission before installing solar panels, wind turbines, or other renewable energy. Apply for a grid connection early and compare Smart Export Guarantee tariffs to get the best payment for electricity you export. You can claim capital allowances to reduce tax and get grants like the Boiler Upgrade Scheme for heat pumps and biomass.

  • Check planning permission rules for each technology – rooftop solar may be permitted development, ground-mounted needs full permission
  • Avoid Best and Most Versatile land (Grade 1-3a) for solar – Grade 3b-5 land is preferred
  • Apply to your Distribution Network Operator (DNO) for grid connection – allow 6-18 months for larger projects
  • Compare Smart Export Guarantee (SEG) tariffs – best fixed rates are 12-16.5p/kWh in 2026
  • Claim capital allowances: Annual Investment Allowance (100% up to £1 million) or 50% first-year allowance for companies
  • Apply for Boiler Upgrade Scheme: £7,500 for heat pumps, £5,000 for biomass boilers (until 31 March 2028)
  • Check local authority for reduced business rates or grants
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Grid Connection Agreement

All electricity generators connecting to the GB electricity network require a connection agreement with either NESO (National Energy …

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