Renewable energy projects can be a great source of additional income and add real value to under-utilised land on your farm, or even turn waste products into revenue. We have over 20 years of experience in renewables and will consider any proven technology, even pre- planning permission.
Our loans are typically used for construction finance, saving you from having to sell equity, and opening up cheaper, long-term debt once the project is operational.
Get Started
Lending Criteria
£100,000 to £10,000,000
England, Scotland and Wales*
Sole traders, partnerships, limited companies, pension funds and tenant farmers with a right to buy
65%
Agricultural land and property plus the renewable energy assets
Purchase or construction of any established renewable energy technology with established off-take
None
Interest only, roll up and repayment options
Typical duration of 12 to 84 months
How Can We Help
Case Studies
Renewable finance: Making the most out of biomass energy
At UK Agricultural Finance, we can provide a range of loan options for renewable finance. One such case involved the installation of a large biomass plant. The borrowers ran a large family-owned poultry business. The borrowers could see the value of biomass on their farm, both for heat generation and power.
Poultry units require significant energy inputs compared to other livestock types as they need to be heated during the winter and sometimes cooled during the summer to maintain a fairly constant temperature.
In this case, the borrowers felt the best fit for their poultry business was a biomass unit. The biomass unit would also provide a feed-in tariff, which helped to offset the substantial cost of construction and installation.
At face value, they were an ideal candidate for high-street bank lending. In fact, their bank was keen to lend to them, but the bank was unable to guarantee funds in under nine months. This was far too long for the borrower, as that would have meant them losing their renewable energy tariff and equipment deposit.
In the end, we were able to take security against two farms totalling 440 acres, plus other fields of 75 acres, and two farm cottages. This provided us with a loan-to-value of 60%, which was within our 65% limit, on a loan of £3.5 million.
Renewable Project Financing
Our clients were beef hill farmers who had secured a feed-in tariff for a 600kW high-head run-of-river hydro power plant on their land in Scotland. They had offers of finance, provided they gave up a large portion of…
