Sustainable Agriculture Loan Scheme: Funding Solar for Welsh Farms
- Ian Mach
- Mar 30
- 3 min read
Reduce Farm Energy Costs with Solar
Farming businesses across Wales are facing rising energy costs, tighter margins, and increasing pressure to reduce emissions. Solar PV is one of the most effective ways to improve farm profitability while future-proofing your operation.
The Sustainable Agriculture Loan Scheme (SALS) is designed to help farms invest in exactly these kinds of improvements—providing affordable finance to support energy efficiency, renewable energy, and productivity upgrades.
What is the Sustainable Agriculture Loan Scheme?
The Sustainable Agriculture Loan Scheme is a Welsh Government-backed initiative, delivered by the Development Bank of Wales, aimed at helping farms modernise and decarbonise.
The scheme is expected to launch in 2026 and will provide accessible finance for projects that improve efficiency, sustainability, and long-term resilience.
It’s part of a wider transition in Welsh agriculture towards sustainable land management and lower-carbon food production.
How the Scheme Supports Solar & Energy Projects
This scheme is particularly well suited to solar installations and on-farm energy improvements.
Affordable, Flexible Finance
Fixed interest rates expected around 3%
Loans from approximately £25,000 to £1 million per project
Repayment terms of up to 15 years
Initial repayment holiday (around 6 months)
This structure allows farms to invest in solar with manageable repayments, often aligned with energy savings.
What Can the Loan Be Used For?
The scheme is designed to fund projects that improve both sustainability and farm productivity.
Solar & Renewable Energy
Solar PV systems on barns, sheds, or land
Battery storage (where applicable)
Low-carbon energy systems
Farm Efficiency & Infrastructure
Energy-efficient equipment upgrades
Improved slurry and nutrient storage
Waste and water management improvements
Productivity Improvements
Modernisation of farm operations
Equipment upgrades that reduce energy use
The goal is simple: help farms invest to save, reducing both emissions and operating costs.
Why Solar is a Strong Fit for Farms
Solar works particularly well under this scheme due to the nature of agricultural energy use:
High daytime electricity demand (perfect for solar generation)
Large roof space on barns and sheds
Long-term savings aligned with loan terms
Protection against volatile energy prices
In many cases, solar installations can significantly reduce reliance on grid electricity while improving overall farm profitability.
Who is the Scheme For?
The Sustainable Agriculture Loan Scheme is aimed at:
Welsh farming businesses (particularly SMEs)
Farms looking to modernise operations
Businesses investing in sustainability or efficiency improvements
It is also designed to complement other support, including the Sustainable Farming Scheme, rather than replace it.
How We Help Farmers Access This Funding
As a solar installation specialist, we support agricultural clients through the full process:
Assessing your farm’s suitability for solar
Designing systems around your energy usage
Forecasting savings and return on investment
Supporting funding applications
Delivering full installation and commissioning
We understand both the technical and financial side—ensuring your project aligns with scheme requirements and delivers strong returns.
When Will the Scheme Launch?
The scheme is currently in development and expected to launch during 2026, initially as a pilot programme.
Funding is expected to be limited in early phases, so early engagement will be important.
Get Ready Now
If you're considering solar for your farm, now is the time to prepare.
Recommended next steps:
Review your current energy usage
Identify suitable buildings or land for solar
Speak to us about system design and savings
Register interest ahead of the scheme launch
Start Your Solar Project
The Sustainable Agriculture Loan Scheme is a major opportunity for Welsh farms to invest in solar with low-cost, flexible finance.
If you’re planning a project, we can help you get ready—and ensure you’re in the best position when funding becomes available.
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