British farming is under pressure. Rising electricity bills, fluctuating production costs and increasingly unpredictable margins are forcing agricultural businesses to reconsider how they use their most valuable assets – their land and infrastructure.
For generations, the value of farmland has largely been measured by what it can produce. What if the same farmland used to grow our food could also generate the power needed to preserve it? Converting unused fields, barn rooftops and surplus land to energy assets that could deliver additional income without farmers having to become energy developers?
The opportunity lies in renewable energy diversification, where the benefits extend from powering everyday agricultural operations to creating long-term passive rental revenue.
Farm Opportunities
For operational farms, energy is a substantial business expense. Dairy refrigeration, grain drying, irrigation, ventilation and machinery all contribute to electricity demand. Installing rooftop solar panels on agricultural buildings or ground-mounted systems on suitable land could help offset these costs while reducing exposure to volatile energy prices.
Battery energy storage systems (BESS) offer another opportunity. By storing electricity for later use, farms can improve how they manage energy demand and potentially reduce peak-time costs. Where commercially viable, batteries may also support additional income through electricity trading or grid flexibility services.
Yet farm owners do not necessarily need to purchase this technology. Under third-party funded arrangements, EDF power solutions can finance, install, maintain and operate renewable infrastructure on a farm's premises. The landowner may receive rental payments, access to competitively priced electricity, or a combination of both, depending on the agreement.
Tesco: Unlocking the value of space
Tesco provides a powerful commercial example of how underutilised space can become an energy asset. In November 2019, EDF power solutions' Onsite Power team commissioned our very first project for Tesco at Aldershot Superstore. Fast forward 6 years we have achieved another milestone. We've successfully completed our latest multi-rooftop solar project for Tesco across four strategic UK locations: Norwich Harford Bridge Superstore, Sidcup Superstore, Sandhurst Extra, and Ystradgynlais Superstore.
This achievement represents a significant milestone in our ongoing relationship that has already helped decarbonise 18 Tesco stores throughout the UK. Most of these projects are developed under a power purchase agreement, with the developer – EDF power solutions' Onsite Power - providing the infrastructure. This model demonstrates an important distinction where the organisation using the electricity does not necessarily need to own or manage the generating equipment.
For British farmers, the significance is not simply that Tesco has installed solar panels. It is that the same principle could be applied to farm buildings, cold stores and agricultural operations.
Consider a vegetable producer supplying supermarkets. Solar panels on a packing facility could help power refrigeration and handling equipment during daylight hours, potentially reducing the cost of keeping produce fresh before distribution. Similarly, a dairy farm could use solar electricity to support milk chilling, while livestock businesses could power ventilation and environmental control systems.
From unused acres to long-term rental income
Land that is unsuitable for intensive cultivation, difficult to access or simply lying unused may still hold commercial value.
Solar farms can provide long-term rental income across larger parcels of suitable land. Battery Energy Storage Systems (BESS) may present opportunities on smaller sites, particularly where commercially viable grid connections exist. Wind turbines, energy substations and telecommunications infrastructure offer further possibilities. Leasing arrangements can unlock several revenue streams, including annual rental payments, inflation-linked increases, development option fees and, in some cases, revenue-sharing agreements.
Importantly, a farmer does not necessarily need to stop farming. Productive land can remain in agricultural use while selected areas are leased, and some solar developments may accommodate continued sheep grazing.
The farms best positioned for the future may be those that look beyond the productivity of their fields and start considering the commercial potential of every acre, rooftop and unused corner.
Diversifying farmland through renewable energy can strengthen financial resilience, with income opportunities ranging from lower energy costs to leasing, solar, and battery storage agreements. The next generation of farm profitability may depend not only on what the land grows, but on what the land can host.
Ready to unlock new revenue opportunities from your land? Speak to our experts to explore how renewable energy solutions could support your farm's long-term resilience.
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