Is solar right for your farm?

Your farm 

• What type of farm do you have?
  Solar can work across almost every farm system — dairy, livestock, horticulture and plant nurseries. If you receive electricity bills, chances are solar can help reduce your energy spend.
   
• Do you get enough sun?
  Solar works well across New Zealand, even on cloudy days. Sunshine hours vary north to south and east to west, and coastal farms may face some additional corrosion, but none of these factors rule out solar. Systems can be designed to suit local conditions.
  
  
• Do you have room for the panels? 
  Solar panels can be installed on buildings or can be ground mounted. System size determines space requirements — from around 150 m² for smaller systems or up to 1,000 m² or more for larger systems.
   

• Is your roof in good condition?
  If you’re considering a roof-mounted system and the roof is likely to need major repairs or replacement within the next 10 years, it’s usually best to do that first to avoid the cost of removing and reinstalling the panels later.
   

• Do you want to continue operating during power outages?
  If so, a solar array on its own may not keep your farm running during an outage. To provide backup power you will need a battery. 

Your farm’s energy use 

• Do you have high annual electricity costs?
  Farms that are large energy users typically see the strongest returns, but all farmers and growers can benefit.
   

• Do you run a lot of electric equipment?
  Solar can power dairy sheds, irrigation systems, fans, pumps, refrigeration, lighting, heating, and processing equipment — anything with electrical demand. The more electrified your farm is, the greater the potential benefit. 
  
  

• Do you use power mainly during the day?
  Solar has the biggest payoff during daytime hours, and shifting flexible tasks to daytime can further increase its benefit. If you do need to use power outside of daylight hours, it can be worthwhile investing in a battery. 
  
  

• Is your electricity use steady or seasonal?
  Highly seasonal loads (for example during irrigation or harvesting) can still suit solar, but oversizing a system to meet short peak demands will reduce your payback and return on investment. It’s best to discuss this with your installer. 
  
  
• Do you have any electric vehicles?
  EVs, ATVs and side-by-sides that can charge from your solar system can mean you benefit more from solar, though they’re not essential. 
  
  

Your farm setup 

• Do you own the buildings and meter where solar would be installed?
  If the site is leased or shared, it’s important to clarify who pays for the system and who benefits from the savings. 
  
  

• Is your main switchboard and ICP close to where solar would be installed?
  It’s simpler and cheaper to install solar close to your main switchboard and electricity connection (ICP), as longer cable runs and trenching add to installation cost. 
  
  
• Do you have more than one ICP?
  Many farms have multiple ICPs supplying different buildings or circuits. A solar system connects to a single ICP, which means only the electricity used by that ICP can be offset by the system. It may be worth adjusting your wiring to increase the load on the ICP where the solar will be installed. 

Your future business plans  

• Are you staying on the farm long term?
  Solar is a long-term investment. Staying put increases the chance you’ll realise the full financial benefit. 
  
  

• Are you planning any major improvements?
  Work that affects your roof, the ground where solar might go, or your electrical system, is best done before installing solar - and designed with future solar in mind. 
  
  

• Do you plan to electrify more equipment?
  If you expect to add electric vehicles, irrigation pumps, or other electric machinery, solar can help manage future energy costs and support the transition.

Your financial expectations  

• What are your payback expectations?
  Returns from solar vary by farm and are best when most energy is used on-site.  You need to be comfortable with upfront capital spend and waiting several years for payback, in exchange for long-term, more predictable savings. 
  
  

• Can your cashflow support the investment?
  Even where payback is attractive, timing matters. Consider whether your cashflow can absorb the upfront cost without creating pressure elsewhere in the business. 
  
  

• Will you need a battery?
  While a battery is a significant additional investment, it will improve resilience and increase on-site use of solar energy by enabling you to store it. So, deciding whether to include a battery is a key decision to be made. Even with a battery, most farm systems remain grid-connected — exporting excess power or drawing from the grid when needed.
   

• Will it make you money?
  Solar is generally a cost-reduction investment rather than a reliable income stream, as export payments are often lower than retail purchase prices, and export limits apply. System return is best when most energy is used on-site.