Exploring Farm Diversification: Renewable Energy
Barry Caslin, Energy & Rural Development Specialist, discusses the potential for Irish farms to diversify into renewable energy production as a profitable and sustainable business venture.
Renewable energy can be a viable and profitable business option for Irish farms. Farms in Ireland are increasingly diversifying into renewable energy production due to various incentives, favourable conditions, and the country's commitment to renewable energy targets. This shift offers promising opportunities for farmers to enhance sustainability, diversify income streams, and support environmental goals.
Renewable energy is a viable business option for Irish farms
Supportive Policies and Incentives
The Irish government offers various incentives and support schemes for renewable energy production, including: Support Scheme for Renewable Heat (SSRH), The Small Scale Electricity Scheme (SRESS)file, The Renewable Electricity Support Scheme (RESS), and Community Energy.
Abundant Renewable Resources
Ireland has significant renewable energy potential, particularly in wind, solar, and biomass energy, thanks to its favourable climate and geographic location.
Diversification of Income
Renewable energy production, such as installing wind turbines or solar panels on farmland, allows farmers to generate additional income. This may involve selling electricity to the grid or licensing land to developers for renewable energy projects.
Reduced Energy Costs
Through microgeneration supports, farmers can reduce energy costs by producing electricity on-site using renewable sources. This leads to long-term savings on electricity bills.
Environmental Stewardship
Investing in renewable energy aligns with sustainable farming practices, reduces carbon emissions, and demonstrates environmental responsibility.
Rural Development
Renewable energy projects can stimulate local economies, create employment opportunities, and contribute to rural development.
Key Considerations
Initial Investment
Establishing renewable energy infrastructure requires significant initial capital. Farmers should evaluate the financial feasibility and explore available financing options.
Regulatory Compliance
Farmers must familiarise themselves with relevant regulations, including permits, grid connection requirements, environmental impact assessments, and planning permissions.
Technical and Maintenance Requirements
Renewable energy systems require regular maintenance, monitoring, and occasional repairs. Farmers should ensure they have the necessary expertise or access to technical support for system upkeep.
Site Suitability
Conduct feasibility studies to assess the suitability of the farm for renewable energy production. Consider factors such as wind speed, solar irradiance, and biomass availability.
By leveraging renewable energy options such as wind, solar, or biomass, Irish farmers can diversify their income streams, contribute to sustainable energy production, and achieve long-term economic benefits. This also supports Ireland's environmental goals. However, careful planning, understanding of regulations, and thorough financial assessments are essential before embarking on renewable energy projects.
Further information is available on the SEAI website
Read the full publication: Branching Out - A Guide to Farm Diversification in Ireland
Explore our Rural Development information series as well as available support for farmers