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Agriculture energy - how IU Energy helps the sector with solutions

IU Energy has a broad experience of energy in agriculture and farms; after all, we’re based in a rural area. Coupled with 18 years of trading, our work in the sector is widespread for these reasons.

As an illustration, we supply renewable and sustainable technology to working farms and agricultural businesses. Similarly, we work with those who are engaged in farm diversification. You can see the NFU’s page on this subject here.

Agricultural diversification meaning?

Diversification can be regarded as the re-allocation of some of your productive resources. For example, land, capital, farm equipment, and labour may be diverted to other products. In richer countries, this may be to non-farming activities such as –

  • Renewable energy production
  • Restaurants
  • Shops

Agriculture and sustainable energy. A natural fit

To be sure, energy use in agriculture is comparatively high for traditional farms as well as those embracing farm diversification. Therefore, investing in sustainable agriculture and renewable energy is a particularly promising prospect. As an illustration, wind, solar, and biomass are endlessly renewable, delivering long-term income and cost savings.

The energy challenges in Agriculture

Notwithstanding the cost of running diesel and petrol plant and machinery, energy use in agriculture is chiefly in demand for – 

  • Illumination
  • Heating and cooling livestock buildings
  • Incubation
  • Greenhouse heating
  • Humidity control
  • Pasteurisation and cooling
  • Refrigeration
  • Ventilation
  • Drying and storage

Indeed, for those not on the gas grid, it’s important to realise that up to 19% of your costs may go on ventilation and refrigeration alone. With this in mind, renewable energy in agriculture, delivered through self-generation and other renewable technologies is a sound business idea. For these reasons it doesn’t matter whether you’re planning farm diversification or not.

What are my options for renewable energy and energy efficiency in agriculture?

On the positive side, going ‘green’ can be as simple as buying a green electricity tariff.  Even so, the most compelling evidence of cost savings and earnings arises from using renewable energy. For the most part, roof space and land are often commonly available in agricultural businesses. In this case, it improves choice and variety when compared with other sectors.

For example, the following are all possibilities, with several not only capable of driving down costs significantly but also qualifying for 20-year income from RHI (Renewable Incentive Scheme). Some also benefit from ECA (Enhanced Capital Allowance)-

  • Air Source Heat Pumps
  • Battery Storage
  • Biomass boilers
  • Combined Heat and Power (CHP)
  • Electric Vehicle Charging Stations
  • Fixed-term green electricity tariffs
  • Ground Source Heat Pumps
  • LED Lighting
  • Solar PV
  • Solar Thermal

Power Purchase Agreements (PPAs)

Similarly, if you have a lot of roof space and significant electricity consumption, a Power Purchase Agreement (PPA) may be a good option for your farm or agricultural business solar panel system. In fact, these agreements are becoming an immensely popular way of financing certain renewable energy technologies such as PV panels. Notably, this funding model is now also reaching smaller businesses.

Of course, Solar energy in agriculture is nothing new, but in this case, a PPA applies where you are consuming the majority of the energy generated in running your business, rather than exporting it all to the grid.

A PPA is something IU Energy may be able to offer your business. 

Moreover, if your business energy usage and roof space meet specific criteria and you can demonstrate it’s for farm energy or agricultural energy use, a PPA allows you to benefit from Solar PV installation with little or no upfront costs. The purchase is funded by a third party like IU Energy’s PPA finance provider. You simply buy green energy cheaper than the market rate from the third party. Furthermore, the system is also maintained by us as part of your contract.

Download our free guide, ‘How to fund your renewables installation’ here.

In summary, IU Energy has the capability of delivering all these farm energy and agriculture options.  Please contact us to discuss your requirements.

“IU Energy have been such a great help. Very professional, nice guys and they definitely know their stuff! They were focused on making sure I was getting the most out of my biomass system and making almost £20K a year extra in tax-free incentives. It has been well worth the investment – my heating is now also cheaper! I would recommend IU Energy to anyone wanting to install a biomass system.”

Carl Payne

Landskerry Estate

Case Studies

Below are representative case studies for projects we have conducted in Agriculture.

How much energy is your business currently wasting?

IU Energy is a multi-award-winning business, providing comprehensive energy management services to its B2B clients, including energy reduction solutions, renewables and independent energy procurement.


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