Farming sustainability loans: solar PV, biomass & anaerobic digestion (AD)

Summary: UK Business Loans connects UK farms seeking sustainability finance (solar PV, biomass boilers, anaerobic digestion/AD, battery storage and related works) with specialist lenders and brokers who understand agricultural revenue models, feedstock risk and grid connections. We offer a fast, free eligibility check and match you to the right finance partners for projects from around £10,000 up to multi‑million pound schemes. Start with a short enquiry and receive no‑obligation quotes tailored to your project — Get a Free Eligibility Check.

Quick list: how we help

• Match your farm project to lenders/brokers experienced in renewables and agriculture.
• Speed up initial quotes — many partners respond within hours or days.
• No obligation, free service — you choose whether to proceed.
• We introduce you to partners who can structure asset finance, project finance or leasing offers.

Why sustainability projects for farms need specialist finance

Large on‑farm sustainability projects are capital intensive and combine installation risk with operational variables. Solar PV, biomass and AD differ from standard business lending because lenders assess both capital expenditure (CAPEX) and long‑term revenue streams — for example electricity sales, export tariffs, Renewable Heat Incentive history, or biomethane offtake.

Lenders and brokers will look at technical risks (installer qualifications, MCS accreditation for PV), planning and permitting, grid connection offers, and for AD/biomass the security of feedstock and fuel supply contracts. Operational costs (OPEX), fuel logistics and maintenance contracts (EPC/O&M) are all critical.

Because of these complexities, generic business loans often aren’t appropriate — specialist lenders and project finance brokers provide the structure and assessment expertise needed to route a farm project to the most suitable product. Get a Free Eligibility Check to see which partners fit your scheme.

Types of sustainability loans and funding routes for farmers

Solar PV (roof-mounted & ground-mounted)

Typical finance options: asset finance, hire purchase, lease agreements, and unsecured or secured term loans for small installs. Project sizes commonly span from small roof arrays (£10k–£50k) to large ground‑mounted systems (£100k+).

• What lenders assess: energy yield estimates, MCS installer credentials, site access, roof condition (for rooftop), grid export agreements and expected income from export/embedded benefits.
• Security typically: the PV asset itself, sometimes a charge on business/company assets for larger deals.

Biomass heating systems

Typical finance: equipment asset finance or term loans for boilers, fuel stores and installation works. Lenders want evidence of sustainable fuel supply (contracts or long‑term sourcing), emissions credentials and qualified installers.

• What lenders assess: fuel availability and cost volatility, boiler efficiency, heat demand profile, servicing/O&M agreements.
• Security: equipment/hard assets; sometimes personal or company guarantees for smaller farms.

Anaerobic digestion (AD)

AD funding often requires project finance or structured asset finance due to larger CAPEX and operational complexity. Key factors include feedstock contracts, waste/food‑processing income streams, electricity and heat offtake arrangements, and any biomethane injection contracts.

• What lenders assess: robust feedstock supply, gate fees or crop supply agreements, grid connection terms, EPC contractor experience, and realistic revenue modelling.
• Security: project assets and cashflows; long tenor loans (7–20 years) possible for well‑structured deals.

Other options

Battery storage, EV chargers, heat pumps and combined packages (PV + battery + EV + energy efficiency) can be financed via equipment leasing, asset finance or blended facilities. Lenders will often favour bundled proposals with evidence of energy management to improve project returns.

Get Quote Now — Free Eligibility Check

What UK Business Loans does when you enquire

Our role is an introducer: we help you reach the right lenders and brokers quickly. Here’s how the typical process works:

1. You complete a short enquiry (business name, contact, postcode, project type and loan amount — takes a couple of minutes).
2. We match your details to finance partners who specialise in farm renewables or agricultural projects.
3. Selected lenders/brokers contact you to scope the project, request basic documents and produce initial quotes or indicative terms.
4. You compare offers and choose whether to progress to full application with a lender or broker.

Our service is free and no‑obligation. We do not lend directly or provide regulated financial advice — we introduce you to finance partners who can assist. Ready to start? Get a Free Eligibility Check.

What lenders and brokers will assess on farm sustainability projects

Here’s what lenders typically look for when assessing solar PV, biomass or AD projects:

• Business & credit profile: company structure, trading history, directors’ credit (for company-backed facilities), and recent accounts.
• Project technicals: energy yield modelling (PV), boiler specs (biomass), AD plant design and EPC contractor track record.
• Revenue assumptions: expected generation, export tariffs, heat sales, gate fees, biomethane offtake agreements.
• Fuel/feedstock security: contracts or reliable sourcing for biomass/AD feedstock; seasonality and logistics.
• Permissions & grid: planning consents (if needed), grid connection offers and DNO conditions.
• Operations: O&M contracts, performance guarantees and insurance.
• Collateral & residual value: asset value forecasts and end‑of‑term options (buyout, refinance, resale).

Practical tips to prepare:

• Have recent company accounts and cashflow forecasts ready.
• Obtain an energy yield report or installer estimate for PV; an EPC scope for AD projects.
• Line up feedstock or heat offtake agreements where possible (even letters of intent help).
• Be realistic with yield and revenue assumptions — lenders stress‑test optimistic figures.

Get Quote Now — Free Eligibility Check

Typical loan sizes, terms & costs

These are general ranges (for guidance only):

• Small installs / asset finance: typically from £10,000 to around £150,000.
• Medium projects: £150,000–£750,000 (may use blended finance or mezzanine layers).
• Large AD or farm‑scale energy projects: £750,000 to multi‑million (project finance structures common).

Typical tenors:

• Asset finance and leases: 2–7 years.
• Term loans for capital projects: 3–10 years.
• Project finance for large schemes: 7–20 years (structured around long‑term revenue contracts).

Rates and fees vary with lender, project risk, borrower profile and security. Representative examples will be provided by lenders/brokers after initial assessment.

Grants, incentives & VAT/tax considerations

Government incentives and grant schemes change regularly. Some farms may be eligible for grant support, rural development funds, or tax‑related benefits for energy‑saving investments. Check the latest guidance from Energy Saving Trust and gov.uk for current programmes.

Tax and VAT implications (for example VAT recovery on energy equipment or capital allowances) will depend on your structure — speak to your accountant or tax adviser before concluding finance plans. We don’t provide tax advice, but can introduce you to brokers who factor tax and incentive scenarios into proposals.

Case study snapshot

Anonymous example: a 250‑ha mixed farm wanted a 200kW ground‑mounted PV array and battery storage to reduce winter grid costs. Challenge: uneven cashflow and limited upfront capital.

Solution: matched to a broker who arranged asset finance covering 90% of CAPEX with a 7‑year term plus a light refinance option at year 5. Result: forecasted 25–30% reduction in annual electricity costs and a positive cashflow within 3 years once generation and storage savings were realised.

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FAQs

Can my farm get finance for solar PV, biomass or AD?

Yes. Many lenders and specialist brokers provide finance for farm renewables. Eligibility depends on project size, credible revenue modelling and the farm’s accounts.

How long will it take to get quotes?

Simple asset finance or PV quotes can arrive within hours to a few days. Complex project finance (AD) takes longer due to technical and legal due diligence.

Will using UK Business Loans affect my credit rating?

Submitting an enquiry via our service does not affect your credit score. Lenders may carry out checks later in the application process.

Do you lend directly?

No. We introduce businesses to lenders and brokers — we do not provide loans or regulated financial advice.

What if I have imperfect credit?

There are specialist lenders and brokers who can consider non‑standard credit histories. Provide full details in your enquiry so we can match you appropriately.

Do I need planning permission or grid permission?

Many projects need a grid connection offer (DNO) and some may require planning permission. Early engagement with technical specialists and your chosen installer helps avoid surprises.

How much deposit is typically required?

Deposit requirements vary: small asset finance deals may require little or no deposit, while larger project finance often requires an equity contribution. Lenders will confirm this in their terms.

Still unsure? Get a Free Eligibility Check

For broader farming finance options beyond sustainability projects, see our farming loans overview at farming loans.

Ready to start?

If you’re planning a solar PV array, upgrading to a biomass boiler, or developing an AD plant, the right financing partner makes all the difference. Complete a short enquiry and we’ll match your farm to specialist lenders and brokers who can produce fast, no‑obligation quotes for projects from around £10,000 upwards.

Get Started — Free Eligibility Check

Important: UK Business Loans is an introducer; we do not lend money or provide regulated financial advice. All lender offers are subject to terms, status and eligibility.

1) Can my farm get finance for solar PV, biomass or anaerobic digestion (AD)?
Yes — many specialist lenders and brokers provide farm sustainability loans for solar PV, biomass and AD where projects have credible revenue modelling, technical specs and suitable farm accounts, and UK Business Loans can match you via a free eligibility check.

2) How much can I borrow for a farm solar, biomass or AD project?
Loan sizes typically range from around £10,000 for small asset finance and PV installs, through £150k–£750k for medium projects, up to multi‑million project finance for large AD schemes.

3) What types of finance are available for farm sustainability projects?
Common options include asset finance, hire purchase, equipment leasing, secured or unsecured term loans, blended facilities and structured project finance for larger AD or farm‑scale energy schemes.

4) How long will it take to get quotes and funding?
Simple asset finance or PV quotes can arrive within hours to a few days, while complex project finance (AD/large schemes) takes longer due to technical, legal and revenue due diligence.

5) Will submitting an enquiry affect my credit rating?
No — submitting an enquiry via UK Business Loans does not affect your credit score, although lenders may perform credit checks later if you progress an application.

6) What documents and evidence do lenders typically require?
Lenders usually want recent company accounts, cashflow forecasts, energy yield reports or installer estimates, MCS/accreditation details, grid connection offers and any feedstock or offtake contracts.

7) Do I need planning permission, a grid connection or other permits to get finance?
Many projects require a DNO grid connection offer and some may need planning consent or permitting, so early engagement with technical specialists and your installer is recommended to avoid financing delays.

8) Can I get finance if I have imperfect or poor credit?
Yes — there are specialist lenders and brokers who consider non‑standard credit histories, but full disclosure in your enquiry helps match you to appropriate providers and terms.

9) Are there grants, tax reliefs or VAT rules that affect farm sustainability finance?
Potentially — government grants, rural development funds, VAT recovery and capital allowances can alter project economics, so check current schemes and consult your accountant while brokers can include incentives in proposals.

10) How does UK Business Loans’ enquiry process work and is it free?
Our short, no‑obligation enquiry (takes minutes) is free and used only to match your farm project to vetted lenders and brokers who will provide tailored, no‑obligation quotes.