Farmers in the UK will be able to access a new £100 million fund to support the costs of installing renewable energy systems.
Barclays bank drew on NFU expertise before launching the initiative, which will provide loans for solar panels, wind turbines and hydro-electricity projects on farmland.
The bank, which will include projected feed-in-tariffs when assessing each loan, surveyed 300 farmers and found that a third expected to invest in the sector, the majority of them within the next year.
The new fund will support the government’s recent commitment for the UK to generate 15 per cent of its energy from renewable sources by 2020.
NFU Deputy President Meurig Raymond said: “The opportunities for farmers to produce renewable energy thereby helping to decarbonise the economy and contribute to the UK’s long-term energy security are there for all to see.
“Given the significant up-front costs of renewables technologies, commercial lending is essential to unlocking these opportunities, so it’s great to see Barclays committing to make additional funding to the sector.”
"For farmers investing makes sense - it's good for the environment, but for the majority it's about good business,” said Travers Clarke-Walker at Barclays.
“Over the years farmers have struggled with low commodity prices and increasing costs. Renewable energy production offers farmers a further opportunity to develop their businesses and add to their traditionally vital roles of producing food and managing the countryside.
"What farmers see is a win-win – lower costs and increased income, and the majority expect the investment to pay for itself in less than 10 years. Meaning they are looking forward to many further years of lower energy costs and a potentially new income as they sell energy back to the grid.”
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