UK bank Barclays has launched a £100 million fund for UK farmers investing in renewable energy.
Developed with sector specialists, the fund is available for solar, wind, and hydro projects in the UK, with Barclays including projected feed-in-tariffs when assessing each loan.
The bank said that new figures show that over one third of the UK’s 200,000 farmers are expecting to invest in renewable energy, with the majority doing so within the next year. It added that farmers expect the investment to generate returns averaging £25,000 per year.
The new fund is in line with the government’s recent commitment for the UK to generate 15 per cent of its energy from renewable sources by 2020.
Barclays has worked closely with several organisations to develop the fund, including the NFU; the Country, Land & Business Association; and the Royal Institution of Chartered Surveyors. The organisations will continue to be involved with the fund in an advisory capacity, and their views will be fed in to consideration for loan applications, the bank said.
Commenting, Travers Clarke-Walker, product and marketing director for Barclays Business, said: "For farmers investing makes sense—it's good for the environment, but for the majority it's about good business. Over the years farmers have struggled with low commodity prices and increasing costs, and Barclays has already supported many farmers as they seek new ways of making money. Renewable energy production offers farmers a further opportunity to develop their businesses and add to their traditionally vital roles of producing food and managing the countryside.”
He concluded: "When looking at a new renewable project, reliable technology, competent maintenance and management are all important considerations, though of course farmers should also keep an eye on the current feed in tariff rates offered to ensure it works for their business."
Barclays is a global financial services provider offering retail banking, credit cards, corporate and investment banking and wealth management, with an extensive presence across Europe, the Americas, Africa and Asia. Barclays operates in over 50 countries and employs nearly 147,000 people, working for 48 million customers and clients worldwide.
