Introduction
The integration of solar panels on homes and unused agricultural land presents a significant investment and asset management opportunity. This guide explores the financial, environmental, and practical considerations of adopting solar energy in these contexts. While also comparing the UK’s approach with that of the USA and UAE.
Financial Benefits
Increased Revenue from Solar Farms
Transitioning agricultural land to solar farms can be highly profitable. Payments from contractors for solar farms often exceed the revenue from farmland rental, leading to significantly higher landowner income. For instance, using the USA as an example in Craven County, NC, companies are willing to pay up to $800-$1000 per acre per year for twenty years, compared to the farmland value of $2,500-$4,000 per acre. In the UK land owners are routinely offered £1000 per Acre on long term lease agreement. – The only hurdle to overcome being obtaining the planning consent for larger areas.
Increased Revenue from Solar Farms
Transitioning agricultural land to solar farms can be highly profitable. Payments from contractors for solar farms often exceed the revenue from farmland rental, leading to significantly higher landowner income. For instance, in the USA, companies are willing to pay up to $800-$1000 per acre per year for twenty years, compared to the farmland value of $2,500-$4,000 per acre.
In the UK, solar farms currently cover 0.1% of land, and the government’s target of 70GW of electricity generated by solar by 2035 is estimated to require 0.5% of UK land.
Financial Incentives and Tax Benefits
There are numerous financial incentives available for solar adoption. In the UK, grants for solar PV equipment are available through the Improving Farm Productivity Grant, which funds systems mounted on farm buildings or floating in reservoirs, but not ground-mounted ones. In the USA, the Federal Investment Tax Credit (ITC) for solar has been raised from 22% to 30%, and programs like the Rural Energy for America Program (REAP) offer grants covering up to 50% of project costs. The UAE government has also been making significant investments in renewable energy, aiming to increase the share of clean energy in the total energy mix to 50% by 2050.

Environmental and Sustainability Benefits
Enhancing Farm Sustainability
Solar energy can significantly enhance farm sustainability by reducing water use and mitigating light and heat stress on crops. Agrivoltaics, that is, the co-location of agriculture and solar, can reduce water transpiration from plants and soil evaporation, thereby conserving water. This dual-use approach also helps in reducing the adverse effects of market shocks or crop shortages.
Low Environmental Impact
Solar panels, when installed and maintained properly, present almost no risk of soil or water contamination. This makes them an environmentally friendly alternative to traditional farming practices.
Practical Considerations
Land Use and Planning in the UK
The decision to convert agricultural land to solar farms should involve careful examination of immediate and long-term risks and benefits. In the UK, local planning authorities are responsible for renewable and low carbon energy development of 50 megawatts or less installed capacity, while larger projects are considered by the Secretary of State for Energy under the Planning Act 2008.
The UK government has plans to decarbonize Britain’s electricity grid by 2030 and has already lifted the de facto ban on onshore wind development in England.
Protecting Best and Most Versatile (BMV) Land
The UK government has issued a statement that ‘Best and Most Versatile (BMV)’ land should be protected to strengthen food security, so large-scale solar projects should avoid this where possible. BMV land is classed as Grade 1, Grade 2, and Grade 3a under Agricultural Land Classification, and solar projects should be developed on lower quality agricultural land, brownfield land, contaminated land, and rooftops.
Job Creation and Economic Impact
The establishment of solar farms can lead to job creation during the construction phase and potentially for ongoing maintenance. This can have a positive economic impact on local communities.

Case Studies and Future Prospects
Successful Integrations
There are numerous case studies showcasing the successful integration of solar energy in farming. For example, the Cleve Hill Solar Park in Kent, which is expected to deliver capacity to generate 373MW of power, moved closer to becoming operational recently after a planning inspector overturned a decision by a local authority that served to stall progress on development.
Innovations in Solar Technology
Future prospects for solar technology in agriculture include innovations that make solar energy more efficient and accessible. Continued public funding and incentives are crucial to encourage the adoption of solar resources and ensure financial viability for farm operators.
Comparison with the USA and UAE
USA
In the USA, the planning and consenting process for solar farms and wind turbines may differ from the UK, with varying regulations and decision-making authorities at the federal and state levels. The USA offers significant financial incentives, such as the Federal Investment Tax Credit (ITC) and grants through the Rural Energy for America Program (REAP).
UAE
The UAE has been actively promoting renewable energy projects, including solar farms and wind turbines, through initiatives and incentives to attract investment and streamline the permitting process. The UAE aims to increase the share of clean energy in the total energy mix to 50% by 2050.
Conclusion
Investing in solar panels for homes and surplus unused agricultural land offers substantial financial, environmental, and practical benefits. With the right planning and consideration of available incentives, solar energy can be a profitable and sustainable asset management opportunity.
By leveraging the financial incentives, understanding the environmental benefits, and addressing practical considerations, landowners and farmers in the UK can make informed decisions about integrating solar energy into their operations.
The comparison with the USA and UAE highlights the different approaches and incentives available, providing a broader perspective on the global adoption of solar energy.
