Is renewable energy generation on Irish farms and across rural Ireland a worthy ambition or just idle pub talk through green tinted glasses – full of hope and lacking substance? Under the Climate Action Plan, 80% of Ireland’s electricity should be generated from renewable sources by the end of the decade – up from the current level of 43%. However, already it is clear we are failing to meet the intermediate targets or deliver the necessary infrastructure to make this happen.
This week an exclusive solar report commissioned by the Irish Farmers Journal, carried out by Watt Footprint and led by Stephen Robb, reinforces the benefits of on-farm solar generation. We commissioned this report in line with our editorial strategy to inform key debates with the facts and give farmers a solid platform on which they can build coherent policy demands.
The savings and payback time bring the benefits into clear focus. Financially, solar generation on farm is a real runner for small farming enterprises across Ireland. This is not just because of the spiralling electricity costs on farm. Of course rising costs of energy make the payback better, but, leaving that aside, the assumed costs and other assumptions in our
">case studies are very real.
Bottom line
The bottom line is any farm (dairy, pig, sheep, cattle or tillage) considering an investment in a tractor or a new shed must also now consider solar as an alternative investment. You couldn’t have said this a year ago.
Of course, each solar investment must be assessed and stress-tested professionally. However, our report shows a relatively short payback window depending on usage, rates and the scale. It is crystal clear that solar can make a real financial return to the business but also make a very worthwhile contribution to the environmental challenges facing the industry and the country.
The report suggests under certain conditions a farmer can get the capital investment repaid within three to seven years. Some farms, like dairy and pig farms, will use a lot of the energy created in day-to-day activity. But, other enterprises like cattle and sheep farms will be dependent on exporting what energy they capture to make a return.
Ministers and legislators are very quick to point out the challenge agriculture has on emissions. The Climate Action Plan for farming – to cut emissions by up to 30% – is widely considered to be one of the country’s biggest challenges. However, there never seems to be the same focus on the upside that farmers and rural Ireland can deliver on energy generation. Currently, it remains unclear if farmers will receive the environmental credit for putting up solar panels.
Leaving aside where the attribution of the carbon savings might lie (energy v agriculture) we cannot ignore the short payback time that catapults solar investment high up the list for a good return on investment. Financing and tax benefits for some sectors such as dairy should make this investment very straightforward and aim to further future-proof the sector.
Next step
The next step must be to empower and resource the key Government agencies – such as An Bord Pleanála, Eirgrid, the Commission for Regulation of Utilities and indeed the State advisory body, Teagasc – to the benefits and opportunities that exist on Irish farms. We must clear the roadblocks, fill the knowledge gap, liaise with other key Departments to make this investment mission by farmers real.
The reality right now is the first port of call for many farmers interested in this investment is a commercial company selling a product rather than being able to contact an independent adviser.
Two weeks ago we highlighted the bottleneck that exists in grid connections for renewable energy projects like this under the Microgeneration Support Scheme. Currently, the ESB only has a grid connection process for smaller investments, smaller than any of the case studies Stephen Robb reports on. The quicker the review of the autumn pilot scheme can be fast-tracked, the quicker a new policy can be in place.
Less negative talk and more positive action must be the order of the day immediately.
Is renewable energy generation on Irish farms and across rural Ireland a worthy ambition or just idle pub talk through green tinted glasses – full of hope and lacking substance? Under the Climate Action Plan, 80% of Ireland’s electricity should be generated from renewable sources by the end of the decade – up from the current level of 43%. However, already it is clear we are failing to meet the intermediate targets or deliver the necessary infrastructure to make this happen.
This week an exclusive solar report commissioned by the Irish Farmers Journal, carried out by Watt Footprint and led by Stephen Robb, reinforces the benefits of on-farm solar generation. We commissioned this report in line with our editorial strategy to inform key debates with the facts and give farmers a solid platform on which they can build coherent policy demands.
The savings and payback time bring the benefits into clear focus. Financially, solar generation on farm is a real runner for small farming enterprises across Ireland. This is not just because of the spiralling electricity costs on farm. Of course rising costs of energy make the payback better, but, leaving that aside, the assumed costs and other assumptions in our case studies are very real.
Bottom line
The bottom line is any farm (dairy, pig, sheep, cattle or tillage) considering an investment in a tractor or a new shed must also now consider solar as an alternative investment. You couldn’t have said this a year ago.
Of course, each solar investment must be assessed and stress-tested professionally. However, our report shows a relatively short payback window depending on usage, rates and the scale. It is crystal clear that solar can make a real financial return to the business but also make a very worthwhile contribution to the environmental challenges facing the industry and the country.
The report suggests under certain conditions a farmer can get the capital investment repaid within three to seven years. Some farms, like dairy and pig farms, will use a lot of the energy created in day-to-day activity. But, other enterprises like cattle and sheep farms will be dependent on exporting what energy they capture to make a return.
Ministers and legislators are very quick to point out the challenge agriculture has on emissions. The Climate Action Plan for farming – to cut emissions by up to 30% – is widely considered to be one of the country’s biggest challenges. However, there never seems to be the same focus on the upside that farmers and rural Ireland can deliver on energy generation. Currently, it remains unclear if farmers will receive the environmental credit for putting up solar panels.
Leaving aside where the attribution of the carbon savings might lie (energy v agriculture) we cannot ignore the short payback time that catapults solar investment high up the list for a good return on investment. Financing and tax benefits for some sectors such as dairy should make this investment very straightforward and aim to further future-proof the sector.
Next step
The next step must be to empower and resource the key Government agencies – such as An Bord Pleanála, Eirgrid, the Commission for Regulation of Utilities and indeed the State advisory body, Teagasc – to the benefits and opportunities that exist on Irish farms. We must clear the roadblocks, fill the knowledge gap, liaise with other key Departments to make this investment mission by farmers real.
The reality right now is the first port of call for many farmers interested in this investment is a commercial company selling a product rather than being able to contact an independent adviser.
Two weeks ago we highlighted the bottleneck that exists in grid connections for renewable energy projects like this under the Microgeneration Support Scheme. Currently, the ESB only has a grid connection process for smaller investments, smaller than any of the case studies Stephen Robb reports on. The quicker the review of the autumn pilot scheme can be fast-tracked, the quicker a new policy can be in place.
Less negative talk and more positive action must be the order of the day immediately.
SHARING OPTIONS