A Scottish dairy farm is cutting energy costs and future-proofing its business against rising electricity prices after investing in solar panels.

With Scottish energy prices rising by 6% in January and farm businesses facing sharp increases in operational costs, many are looking for ways to mitigate the impact. The MacTaggart family of Rascarrel Farm, Castle Douglas, have done just that, investing in solar panels to protect their dairy unit from price hikes.

With financial support of the Clean Growth Financing Initiative (CGFI) from Bank of Scotland, part of Lloyds Banking Group, which funds ‘green’ investments through zero-percent set-up fees or discounted lending, the family has reduced their reliance on grid electricity.

The solar panels, installed on their cubicle sheds, now generate 25% of the farm’s total electricity needs, significantly lowering their bills.

“Coming towards the end of a fixed electricity contract, we knew we had to act,” explains Matthew MacTaggart, who farms at Rascarrel with his mother, Fiona, and siblings Ewan, Tom, and Rebecca. “With energy costs doubling after installing robotic milkers, solar was a no-brainer. It’s cut our costs and made us less dependent on external energy sources.”

While Scottish Power does not currently allow them to export excess energy back to the grid, Matthew sees further potential to expand their solar setup in the future, particularly for their on-farm holiday lodges. The current system produces 32 kilowatts per hour, with a six-year return on investment based on the panels running at 90% efficiency.

The MacTaggarts worked with Lewis Carruthers, their relationship manager at Bank of Scotland, to integrate renewables into their financial plans.

“Lewis has been fantastic, and the support from Bank of Scotland has been crucial,” Matthew continues. “Without the Clean Growth Financing Initiative, making sustainable investments would have been more challenging.”

Lewis, who has supported the business since 2021, takes a holistic approach to planning investments, helping farms identify their strengths and where they can build long-term resilience.

“Find people that have done similar things,” Lewis says. “Cost it out and look at your return on investment to make sure it’s worthwhile. It’s also got to be right for your business – you’ve got to have an interest in what you're doing.”