Renewable Finance: Financing On-Farm Energy Storage Solutions

Across the UK, farmers and landowners have embraced renewable energy, from solar panels on outbuildings to wind turbines on high ground and anaerobic digesters powering local homes. But as energy prices fluctuate and the national grid creaks under pressure, one question is increasingly front of mind: how can farms capture more value from the power they already generate? The answer, for many, lies in battery energy storage systems (BESS). These systems represent the next logical step in the evolution of farm-based renewables. But while the technology is promising, the costs are significant and that’s where tailored finance solutions come into play.

Why Energy Storage Matters on Farms

For years, renewables have offered a route to reduced bills, greater sustainability, and an additional income stream through the sale of surplus power. Yet the challenge remains: the sun doesn’t always shine when you need electricity, and exporting to the grid often earns less than consuming the energy on-site.

Battery energy storage bridges this gap. These systems store excess power generated during peak production times and release it when energy demand is higher, or when export prices are more favourable.

In an agricultural setting, where energy needs can spike during milking, drying, refrigeration, or harvesting, the ability to store and deploy power flexibly can significantly improve efficiency and profitability.

What Is a Battery Energy Storage System (BESS)?

At its core, a BESS is a set of batteries, often lithium-ion, connected to your renewable energy source and the grid. When your solar panels or wind turbines generate more power than you use, the surplus is stored in the batteries. That stored energy can then be used during the night, during power outages, or when prices for grid electricity rise.

For farms, these systems are usually installed alongside existing solar PV or wind infrastructure, though they can also be funded as standalone projects if the farm has a viable grid connection or plans to lease land for commercial storage.

The Financial Benefits of Energy Storage for Farmers

Battery systems aren’t just about environmental credentials, they offer tangible financial advantages too. Here are four ways they can impact your bottom line:

1. Maximising Return on Renewable Investment

By storing surplus energy and using it when it’s most needed, you reduce waste and increase your use of self-generated power. This improves the return on your investment in solar or wind.

2. Reducing Grid Reliance

Battery storage improves energy resilience. During times of instability or blackouts, you can continue operating critical infrastructure, be it cold storage, water pumps, or milking equipment, without disruption.

3. Unlocking New Revenue Streams

Stored energy can be sold back to the grid when demand (and prices) are high. In addition, landowners may be approached to host commercial battery sites, offering new leasing opportunities that generate long-term income.

4. Future-Proofing the Farm

As rural electricity demand rises, especially with the transition to electric vehicles and modern processing equipment, battery storage ensures your farm is ready for tomorrow’s energy needs.

The Cost Challenge: Why Finance Is Crucial

Despite the benefits, the upfront cost of a farm-scale battery storage system can be significant — often upwards of £50,000 depending on capacity, integration, and site conditions. Grants and subsidies are limited, and traditional lenders may be hesitant to support what they see as emerging technology.

That’s where UK Agricultural Finance can help. Our agricultural energy finance solutions are designed to support rural innovation, including energy storage, renewables, and diversification projects. We understand the sector and its seasonal nature, offering:

  • Loans secured against land, property, or equipment

  • Flexible repayment terms aligned with agricultural cash flow

  • Support for standalone battery storage or as part of a broader renewable or diversification strategy

Whether you’re looking to add storage to an existing solar system, build resilience to your daily operations, or invest in your farm’s energy future, tailored finance can make it viable.

Is Energy Storage Right for Your Farm?

Battery storage isn’t for everyone — but it could be a game-changer if you:

  • Already generate renewable electricity via solar, wind, or AD

  • Experience high energy usage during evenings or peak tariff periods

  • Operate refrigeration, irrigation, grain drying, or processing facilities

  • Want to reduce exposure to rising electricity costs

  • Are exploring leasing land for grid-scale storage development

  • Need greater energy security for remote operations

Before making a commitment, it’s important to assess the suitability of your site, your existing infrastructure, and your future energy plans.

The Future of Farm Power

Energy is no longer just a cost — it’s a strategic asset. With the right storage in place, your farm can become more resilient, more profitable, and more sustainable.

Battery systems represent the future of on-farm energy — enabling you to control how and when you use power, make the most of every unit you generate, and stay ahead of future regulatory and market changes.

With trusted finance from UK Agricultural Finance, turning your fields into future-ready energy hubs is closer than you think.

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