How Farmers Can Benefit from Export Power Purchase Agreements for Renewable Energy
In today's era of sustainable business practices, farms increasingly turn to renewable energy solutions like solar panels to reduce operational costs and meet environmental goals. But did you know that excess energy generated from your solar panels can also become a revenue stream? Power Purchase Agreements (PPAs) provide a simple, effective way for farms to monetize surplus renewable energy. Here, we explore how PPAs work and the unique benefits they offer for agricultural businesses in the UK.
What Is a Power Purchase Agreement (PPA)?
A Power Purchase Agreement is a contract where businesses agree to sell their surplus renewable energy to the grid or directly to other businesses at a fixed rate. For farmers, this means turning unused energy into a new income source while contributing to a greener UK energy network.
Learn more about Power Purchase Agreements.
Why PPAs Are a Game-Changer for Farmers
Farms often have substantial roof space from agricultural buildings or sufficient land space ideal for hosting solar panels. This provides opportunities not just for energy savings but also for income generation. Here are some of the key benefits for farms:
Revenue from Surplus Energy: Generate income by selling unused renewable energy.
Fixed Energy Rates: Lock in predictable energy prices for long-term financial stability.
Enhanced Sustainability Goals: Meet industry regulations and attract eco-conscious clients or partners.
Ease of Implementation: Our platform streamlines the process of setting up and managing a PPA for your business.
How to Get Started with PPAs for Farmers
Starting a PPA is simpler than you might think. With NOCO, you can:
List Your Surplus Energy: Connect directly with buyers interested in renewable energy.
Access Competitive Rates: Our platform ensures you get the best possible deal for your surplus.
Streamline Management: Handle contracts and payments all in one place.
Learn more about how our PPA platform works.
What are the Challenges that Farms Face When Monetising Their Surplus Energy?
Most farms in the UK are located in rural areas and have had their electrical systems installed for many years, sometimes even decades. The rise of rural solar and wind farms in the UK has created grid congestion issues in many areas.
One of the most common problems our team has seen in the market is a lack of grid headroom (capacity for the local network to accept your surplus energy). The information about your current connection’s headroom is available on the grid application that your renewable energy developer secured. Depending on the size of your renewable energy system, a 100kVA headroom rating is more than sufficient to export most of your surplus power.
Another more common, but easier-to-solve issue is outdated metering equipment. Depending on the work done to install your renewable energy system, your developer may or may not have installed new up-to-date metering equipment. To export energy to the grid via an export PPA, you will need to have a half-hourly meter with export monitoring capabilities. All of NOCO’s developer partners now install half-hourly export/import meters as standard on the sites they develop and build.
Frequently Asked Questions About PPAs
1. How much revenue can I generate from a PPA?
Revenue depends on the size of your solar installation and energy production. Use our asset calculator for a personalised estimate.
2. What happens if I don’t generate enough surplus energy?
If your energy generation fluctuates, PPAs can be tailored to accommodate variable outputs, ensuring flexibility and continued profitability. Learn more about how PPAs work.
3. Is a PPA suitable for small farming businesses?
Yes! Every type of business with a renewable energy installation that produces surplus power can benefit from an Export PPA.
Take the Next Step Towards Energy Monetization
If you’re ready to explore the benefits of PPAs for your farming business, contact us today. Our experts are here to guide you through every step of the process and help you unlock the full potential of your renewable energy.