Funding for Farmers

Almost a million PLN for a single farmer for the development of renewable energy

Polish farmers have gained the opportunity to obtain subsidies for investments in installations generating energy from renewable sources, in accordance with the announcements of the Ministry of Environment.

When purchasing installations up to 50 kW, beneficiaries have the chance to settle as prosumers. A participant can receive funding of up to 800,000 PLN. The assistance is a result of the involvement of the new government program NFOŚiGW in the form of the Agroenergia program. Utilizing renewable energy sources thus has more benefits and is supported by the state. Example goals funded from public funds include the construction of solar panels, support for hydropower, the construction of wind turbines, or biogas plants.

Farmers can obtain funding of up to 40% of the total investment value, up to 800,000 PLN. An additional goal of the Agroenergia program is to encourage energy storage and promote energy self-sufficiency for farmers in the future. Renewable energy sources not only result in increased profits for farms but also allow for a fuller utilization of biomass potential. Villages are currently most exposed to drops in energy voltage, especially evident in crisis situations. The total budget for the Agroenergia program is 200 million PLN, with 40% being non-repayable grants, while 60% consists of repayable forms of financing.

Photovoltaics for Farmers

In recent years, the construction of private photovoltaic installations has become particularly popular among farm owners. Considering that electricity costs are one of the expenses that most significantly burden farmers' budgets, this is not surprising. Investments in photovoltaics are also favored by programs allowing for funding applications. A subsidy for a farmer is an opportunity to reduce the costs of building a PV installation, guarantee a faster return on investment, and significantly increase their availability.

See: Ecological methods for heating a home

Where to apply for funding for farmers for photovoltaics in 2021?

In 2021, all major programs offering subsidies for solar panels for farmers have been continued. This is certainly good news for everyone planning to build their own home solar power plant. The application process is still ongoing under the Agroenergia program, which in previous years saw great interest mainly from owners of small and medium-sized farms. In 2019 alone, the total amount of assistance under the program was nearly 80 million PLN. An investment tax relief in agricultural tax, allowing for appropriate deductions over a period of 15 years, is also an opportunity to reduce the costs of investing in photovoltaic modules.

Who is the Agroenergia program for?

Funded by the budget of the National Fund for Environmental Protection and Water Management, the Agroenergia program is aimed at owners or tenants of agricultural farms with an area of 1 to 300 ha. As in previous years, the subsidy for farmers takes the form of non-repayable funding for the installation of photovoltaic systems, biogas plants, wind turbines, or heat pumps. Funds are disbursed after the completion of the investment, and the maximum amount of assistance is 20% of the eligible costs of the project, but no more than 25,000 PLN.

Photovoltaics and Agricultural Tax – Investment Relief

Another opportunity for support in building a solar power plant for the farm is the investment relief in agricultural tax. All taxpayers of this tax can benefit from it, including:

– owners or perpetual usufructuaries of land,

– holders of land belonging to local government or the State Treasury,

– owners of self-owned land.

Importantly, the tax relief can be utilized not only by individuals but also by legal entities and entities without legal personality.

As for the form of support, the landowner has the right to deduct 25% of the investment costs from the tax for a maximum of 15 years. In many cases, this can mean that free electricity from the sun will be produced by photovoltaics, and agricultural tax will completely cease to burden the farm's budget.

Example: Mr. Marek, a farm owner, pays 1,000 PLN in agricultural tax annually. He decided to take advantage of the investment relief when building an installation with a total value of 50,000 PLN. According to the regulations, his relief will amount to 12,500 PLN. This means that for 12.5 years, Mr. Marek will not pay agricultural tax.

The "My Electricity" and "Clean Air" Programs and Running a Farm

In the case of programs aimed at homeowners, such as "Clean Air" or "My Electricity", the situation is somewhat different. Photovoltaics for farmers can indeed be financed from these sources, but the subsidized installation under the program can only power the residential building – it cannot serve the needs of the farm. Importantly, income from agricultural activities can be considered as a source of livelihood for the applicant and their family.

Photovoltaic Installation in the Farm – Is It Worth It?

Investing in solar panels for farmers is one of the best examples of how to achieve complete energy independence in times of rapidly rising electricity prices. It is no wonder that small and medium-sized farm owners are increasingly turning to photovoltaic projects to reduce their operating costs. Among the most important advantages of solar panels on the farm, aside from the economic aspect, are:

– reduction of environmental pollution,

– the ability to effectively utilize large roof areas of farm buildings,

– development of fallow land and land in direct proximity to buildings,

– the ability to invest saved money in farm development,

– the right to store produced energy surpluses or send them to the grid.

Photovoltaics with Subsidy Means Faster Return on Investment

Regarding funding for farmers for photovoltaics, the year 2021 did not bring any revolutionary changes. All major subsidy programs have been maintained, and additional sources and forms of support are also likely to be launched. Investing in solar panels in the farm continues to be regarded as a profitable venture both in the short and long term. Moreover, the obtained subsidy or tax relief makes such ventures even more profitable.

See also: Underfloor heating