According to research carried out by Barclays, some 70,000 farmers in the UK are expecting to invest in renewable energy schemes, with many hoping to generate returns in the region of £25,000 per annum. The research, based on a survey of 300 UK dairy farmers carried out during August, was published to coincide with the launch of a £100 million fund to enable renewable schemes to go forward.

Shirley Mathieson of Saffery Champness comments: “The loan fund can be accessed for solar, hydro and wind projects throughout the UK and for many landowners and farmers an investment in generating renewable energy now makes good business sense.

“The majority of those investing in renewables expect a pay-back period of 10 years or less, after which they will have many years of lower energy costs, generation tariff and income through selling energy back to the grid. Renewable energy production offers landowners and farmers an opportunity to expand their businesses and add to their traditional role of producing food and managing the countryside”.

However, Saffery Champness has already expressed concern over some commercial schemes following the Department of Energy and Climate Change (DECC) announcing that cuts of between 40 to 70 per cent to FiTs for PV installations above 50 KW from August. This has led to a number of large scale solar projects being cancelled as the rate of return has become unattractive to investors.

“Furthermore, we are still awaiting an announcement on the Government consultation on Feed in Tariff rates, due later this month, and further investment may depend on the outcome”, says Shirley Mathieson.

“Planning also remains an obstacle to many renewable schemes and this coupled with the time and cost involved can be a real obstacle to development”, says Shirley Mathieson, who concludes: “A professional appraisal of the financial viability of any renewable scheme is essential at the outset”.