January 2012

Energetic investment - Green power options to fuel our business

Rattlerow Farms upped the pace to get solar panels installed on many of its farms before the 12th December deadline, when feed in tariffs were reduced by 50%. Seven 50kW systems - the maximum size that qualified for the higher feed in tariff subsidies - have been installed. None of the installations are visible from the road and so no planning permission was required. However, planning remains a rather grey area for solar panels and dependent on the local authority. Rattlerow has received conflicting advice, but has found that if the electricity generated will be used on site then no planning was required for roof installations.

The cost of solar panels has fallen considerably during the past year making solar energy a very competitive and attractive option for farm businesses. A “quality” German solar panel 50kw system now costs about £95000 and the reduction in installation costs means that payback can now be less than 6 years for those on a higher rate feed in tariffs. The systems in place on Rattlerow’s farms are expected to earn in the region of £18000 a year depending on how much power is consumed on site.

Solar panels

But the key bonus is the inflation linked feed-in tariff rate, which should be available for the next 25 years. Although photovoltarics is one of the simplest and most renewable energy technologies, Rattlerow is now taking time out to consider the economic advantages of installing any more solar panels now that tariffs have halved. Even so with installation costs becoming more competitive and energy prices continuing to rise, it is likely that PV will economically be viable without subsidies.

Monitored systems
Smart meters have been fitted to all of Rattlerow PV systems and data is recorded and sent back to a central office to monitor performance. The effect of late afternoon shadows has already been noticed on one site and there is concern about the unavoidable dust that is generated on farm. This will mean panels will have to be cleaned at least once a year to maintain efficiency and so catwalks have been fitted to the roofs to allow easy to the panels. The corrosive effects of ammonia and vermin damage will also be monitored and although systems do have a 10-year guarantee and extra investment in insurance has been made to cover any potential storm damage.

Reviewing other renewables
Rattlerow has created a separate cost centre for renewable energy and is currently exploring the economic viability of other renewable technologies too. Planning is being sought for the installation of 50kw wind turbines on most farms. These systems are very small compared with the large 2-megawatt turbines operated by the electric companies, but gaining planning consent is proving difficult. Concerns have been raised by neighbouring properties that will have to be considered.

The renewable heat incentive has focussed attention on heat pumps and Rattlerow has fitted one ground-sourced heat pump serving a farrowing house. If it performs as well as predicted, then every £1 spent on electric should be returning £1.70 in subsidy. Again, it’s a competitive and viable system. Biogas is another major interest and Rattlerow plans to take advantage of the incentives currently on offer. Two thirds of the revenue is subsidy that is guaranteed and index linked to inflation, but biogas systems are far more complicated than some of the other technologies. As a company we must ensure renewable are managed carefully. They do offer significant advantages but they must not divert investment or resources away from our core business of genetic improvement and pig breeding.

Return to main news page