Mike Davis speaks about the pros and cons of renewables

Q. What does your role entail as a NFUS renewables coordinator?

A. “I just basically try and assist people with any issues around renewable energy and I keep an eye on the situation as to what is happening with renewables businesses.

I also try and influence industry and regulatory organisations to make it possible for farmers to invest in relatively modest renewable projects.”

Q. What would you say is the most common avenue taken for renewable energy when it comes to smaller farm businesses?

A. “It depends on the specifics of the location and type of business but if you are in the soft fruit industry where the demand is seasonal, solar panels make a lot of sense to install.

But on the other hand if you need a lot of energy in the winter then it might be an idea to invest in smaller scale wind energy as a way of negating rising electricity prices.

The only thing at the moment is that wind turbines on the smaller scale aren’t as economic compared to solar PV systems which we are seeing become significantly cheaper to install and run.”

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Solar panels are lower in price and easier to install on a smaller scale according to Mike Davis

Q. What are your thoughts on the difference between business owned renewables vs renting land out for renewable energy production?

A. “Put simply the most you will make from renewables is the electricity you save when you don’t have to buy it from the grid.

That will always make a huge difference compared to land that you rent out because you will only get income from the rent. It’s about what suits your business but the most value you can get when it comes to rural and farming businesses is when you can maximise use of what you are producing.”

Q. What would be your advice for anyone looking to take that first step into investing in renewable projects?

A. “The first thing to do is to get yourself a trusted advisor who will basically figure out the reality of the situation. Don’t go to the first salesman or company that approaches you, it’s a much better idea to get independent advice. You should always ask the questions is it worth my while? Is it economically viable? What is the situation with grid connection?

I would say grid connection is the biggest thing to nail down because if there’s no realistic prospect of grid connection you will have to potentially start looking into more complex off-grid schemes. These could have a place within farm businesses but it’s a step up from just having renewables on-farm to being able to run the whole business on these off-grid island systems.

There is more complexity and cost associated with them and you would have to also think about having more concrete back-up options such as generators just in case you have any issues.

The most important thing to do when thinking about renewables is to find that trusted advisor, ask your neighbours who have had similar projects done and find out who they would recommend to use or for NFUS members contact your area manager.

If you were wanting to do it entirely yourself you would want to prioritise enquiring about grid connection as your first step.”

Q. What are the most common forms of renewable energy that you see in the North East?

A. “In the North East of Scotland at the moment it’s wind turbines. We don’t have a great hydro resource as there is not the rainfall. Solar is making inroads and becoming more widely utilised.

What we do have is a good wind resource and when there was support for wind turbines through the FIT and ROCs schemes (Feed in Tariff and Renewables Obligation Certificate), it was financially viable to install turbines of all scales as part of your business. Now without that support and because the cost of installing wind turbines is so high, unless you are using much of the power yourself or you have a back-to-back deal with a neighbour where you are getting the full price of the electricity, the economics of it don’t stack up awfully well.

It isn’t impossible to do and if you are one of the major utility companies putting up 20 turbines on a hill running at 60MW then it makes sense but currently with the price of materials putting up just a single turbine isn’t as economically worthwhile at that smaller scale.

Compared to solar that is cheaper and can be installed on the roof of sheds and steadings it is a no brainer. The way I see things going is more solar panels being incorporated as part of smaller agricultural businesses.”

Q. What is your take on having panels in fields over installing them on buildings?

A. “In planning terms it is much simpler to mount panels on existing sheds, but roof orientation needs to be correct and engineering considerations regarding the increased roof load associated with the panels must be looked into.

Roof mounted solar is generally cheaper to install. Ground mounted solar is usually more productive as orientation and inclination can be optimised. It certainly is the case that you can graze sheep in ground mounted solar installations but I think one of the best ways is to establish wildflowers or wild bird strips in between the panels.

You don’t have to deal with potential issues of the animals damaging the panels and it benefits the environment as well as meeting the greening requirements of the SAF. You would be utilising an area that might not be productive otherwise and you wouldn’t be losing out on income for your farming business.”

Q. What would you say is the biggest conflict smaller agricultural businesses are facing when it comes to installing renewables?

A. “They can’t get a connection to the grid. Unfortunately a lot of the connections have been taken up by battery storage schemes, large wind projects and large scale solar. Once the connection becomes available the big guys go in and book that capacity by paying big money for it. More modest businesses have to start looking at more off-grid options instead which really doesn’t work for everybody.

A lot of people are desperate to invest in renewables but just can’t because of the current grid situation. I think what can also put people off is the potential complexity of the planning process, hence speaking to an advisor can be really beneficial to guide you through that process.”

Q. Where do you see the future of renewable investment for small farm businesses going forward?

A. “When it comes to small scale projects, schemes and government investment should really be seen all through the UK not just Scotland. It could make a real difference, for example 200 kilowatts of solar PV takes up less than an acre of land and virtually every farmer has space in less productive areas that could house that.

It doesn’t impact food production, it instead could work with that and help you invest in the rest of the business to improve productivity.

The thing to always remember is the best price you can ever get for your electricity is the electricity you don’t buy from the grid. Its a plain and simple way to save pennies and benefit your business.”