Barclays has launched a £100m fund for UK farmers investing in renewable energy to meet growing interest from farmers in generating income from energy generation.
Research by Barclays found 37% of UK farmers expect to invest in renewable energy, with the majority of those doing so within the next year. Farmers expect the investment to generate returns averaging £25,000 a year.
Barclays has developed the fund with the help of the National Farmers Union. The fund is available for solar, wind, and hydro projects in the UK, with Barclays including projected feed-in-tariffs when assessing each loan.
Martin Redfearn, head of agriculture at Barclays Business, said: "For farmers, investing makes sense – it's good for the environment, but for the majority it's about good business.
"What farmers see is a win-win, lower costs and increased income, and the majority of farmers expect the investment to pay for itself in less than 10 years."