Renewable Energy Production on Farm Land – Feed In Tariffs and return on investment.

With the new government’s squeeze on expenditure it seems likely that farm subsidy payments – whether the single farm payment or rural development programme for England – will be in the firing line.

Farms that are currently showing a small profit could be in a position where they see the funds available for reinvestment significantly dwindling.

We have looked at this problem with several of our clients and found the potential to significantly increase income in a number of ways, including wind farm development, and photo-voltaic panels.

Feed in Tariffs

The inception of Feed In Tariffs (FITs) in April of this year has drastically increased the viability of small to mid range electricity production using wind turbines or pv panels.  By making use of a south facing roof or a suitable location for a midrange wind turbine landowners can see a return of between 10 and 20 percent on their investment, equivalent to a payback of as little as 5 years.  In the best case scenario an investment of £500,000 could see an income of in excess of £150,000 per annum with the technology guaranteed for up to 12 years and the government assured payments guaranteed for up to 25 years.

While many are unsure of larger scale wind farm developments, the economics work best with a mid range turbines considerably smaller than a standard pylon which are considerably less visually intrusive and as such far less likely to upset the neighbours.

James Fulton of Berrys said “There are very few sites where there is no potential at all – it just comes down to what suits your lifestyle and what rate of return you are willing to accept.”

For a free no obligation confidential discussion regarding wind farms, turbines, solar, or other renewables please contact James Fulton at our Kettering office on 01536 532386.