UK farmers are turning their attention to renewable energy investments as the sector looks to diversify its income streams, reduce carbon emissions and enhance the sustainability of its operations, according to new research commissioned by Investec Wealth and Investment UK.

The research identified that seven in 10 UK farmers are investing in renewable energy production, and nine in 10 farms are being approached by third parties who wish to purchase carbon credits to offset greenhouse gas emissions.

According to Investec, renewable energy initiatives present an attractive opportunity for farmers to play a key role in the green energy revolution. Using resources such as wind, solar, biomass, and hydropower, farmers can use their land to generate clean energy while also mitigating their environmental impact.

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In terms of the types of projects focused on, the study found 68% of respondents said they have invested in biomass energy. This is followed by wind energy (51%), solar energy (39%), hydropower (23%), and batter energy storage systems (14%). Only 2% of farmers interviewed said they were not currently involved in any renewable energy.

The research saw 90% of farmers interviewed claiming to have been approached by third party organisations wishing to purchase carbon credits to offset their own emissions. Almost half (45%) said they had been contacted on multiple occasions with such requests showing the UK Government’s carbon reduction goals have created a buoyant market for carbon credits.

Scott Jones, divisional director – southern offices at Investec Wealth and Investment UK said: “Our survey shows how renewable energy production aligns well with the ethos of many farmers who are prioritising environmental stewardship and sustainable land management.

“By integrating renewable energy projects into their operations, farmers can demonstrate their own commitment to reducing carbon emissions, protecting natural resources and preserving the rural landscape for future generations.

“Such projects also offer farmers a way to future-proof their operations against the impacts of climate change and volatile energy markets.

“Moreover, such investment in renewable energy gives famers an opportunity to create other income streams, including the sale of carbon credits to third parties, which can be less susceptible to market fluctuations and regulatory changes, thereby enhancing the resilience and long-term viability of their businesses.”