Time to consider your options on energy sources
Are renewables even more appealing now energy bills are such a big talking point?
With energy bills being a major cost for most rural businesses now is the time to have a serious think about how money can be saved.
The Government is reducing support for renewables in April, a sure sign that the "carrot" will only be here for a limited time before the "stick" comes into play.
Many farms and estates will have multiple enterprises on site which can all benefit from having a renewable energy source. Solar PV and biomass still offer a return on your investment of 12 per cent plus. Is it such a risk?
The Government needs to have made significant reductions to our carbon footprint and the time will come when support is no longer offered on the uptake of these schemes.
This means we need to be thinking about maximising the return on any investments we can make, especially if that investment reduces are energy costs to the business as well.
Solar PV is still a very viable option for investment with it offering an income for 20 years from the Feed in Tariff (FiT) and reducing electricity bills for the future.
Even with the Fits reducing, the cost of the equipment is constantly coming down because of the competitive market we now have.
Biomass is the top contender for reducing heating costs with it again offering a 20-year income from the Renewable Heat Incentive (RHI) and reducing hot water and heating bills.
It is an investment that is still seeing a return of over 15 per cent, so it shouldn't be ignored.
If you're considering renewables we recommend that you talk to your land agent first to make sure you get the correct advice and not just a salesman's pitch.
It is most important to work with your land agent to consider all aspects of a project from planning to tax. Madeleys offer site visits of completed projects to answer any questions you might have.
* By Chris Powell BSc (Hons), Assistant Rural Surveyor, Madeleys Chartered Surveyors
