GSC Grays has welcomed news of the opening of the latest Farm Productivity Grant, but said that it will likely exclude farmers looking to install small scale solar systems to meet lower energy use.
The grant, from the Department for Environment, Food and Rural Affairs (Defra), is open to farmers for the use of robotic and automated equipment together with a focus on solar energy through £15 million of funding.
Regional director at GSC Grays, John Wallis, welcomed the opening of the grant, but said that the minimum grant being £15,000 for solar equipment will likely prevent farmers looking to install small scale systems from getting the support.
“This is very welcome news which we have been waiting to hear. GSC Grays has been working with farmers over the last 18 months through our Farming Business Advice Service (FBAS) which is funded by Defra, to review their energy use and install P.V systems,” he said.
“This grant will make that even more attractive, and some farms, where the returns were marginal without the grant, will now want to proceed.”
“The grant can also cover some additional eligible costs such as updating an electricity supply which could help farmers who are looking to install three phase as part of a solar project.
“However, the minimum grant is quite high – £15k – which means total project costs have to be a minimum of £60k. As a result, this will likely exclude farmers looking to install small scale systems to meet lower energy use.”
For robotic and automated equipment, the minimum grant available is £25,000 and the maximum grant available is £500,000. The grant will now cover up to 50% of the cost.
For solar equipment, the minimum grant available is £15,000 and the maximum grant available is £100,000. The grant will cover up to 25% of the cost.
It is possible to apply for automated and robotic equipment and also solar equipment, however, the maximum grant amount still cannot exceed £500,000 in total for both applications together.
“In recent months, our average installation of farms we have worked with has been around £20k – £30k and therefore, would be ineligible for this grant,” Wallis said.
“It should be noted that the grant doesn’t include ground mounted solar which will prohibit farmers without sufficient rooftop space.”
Farm Productivity Grant
This is the second time Defra has offered this grant, and full applications can be submitted up until June 30, 2025.
The initial online checker stage will remain open until March 21. After this date, the Rural Payments Agency (RPA) will decide who to invite to the full application stage.
Wallis said the grant will be welcomed by farmers who are looking to reduce fossil fuel use, improve energy resilience and reduce electric bills.
To move towards the ambitious target of net zero, equipment relying on electric or renewable energy will be prioritised with biofuels viewed as renewable and will be treated preferably.
The grants are subject to minimum levels meaning farmers will need to contribute the balance which will have to be costed and reviewed as part of their overall business plan to assess the viability.
