As work on the land has become increasingly difficult over recent years, many farmers are looking to diversify. By diversifying into wind energy and installing wind turbines, farmers are in a unique position to benefit from the growth in the wind industry.  To tap into this market farmers have the option to lease their land to wind farm developers with no additional labour or expense required or they  may wish to use the wind to generate power for their farms, or become wind turbine power producers themselves.

Enviko can provide advisory services and conduct the full project development for you whether it being setting up initial feasibility studies and wind speed assessments in order to maximize your land’s leasing potential right the way through to gaining planning consent and managing the installation of the wind turbines on site.

Working with Wind Developers

One of the easiest and most attractive ways for farmers to benefit from wind power is to allow developers to install large wind turbines on their land. The royalties are typically around £2,000 to £4,000 per year for each turbine, depending on its size. These payments can provide a stable supplement to a farmer's income, helping to counteract swings in commodity prices.

Wind developers may offer landowners a fixed annual lease payment, a single up-front payment, a share of revenues from a wind project, or some combination of these. Although fixed payments may be lower than a share of revenues, they offer less risk to the landowner. Up-front payments may be attractive too, but if the property is sold within the timeframe of the contract, it could complicate the sale. A new landowner who doesn't receive any income from the wind turbines may want to pay a lower price for the property. Also, up-front payments are often structured so that the developer receives a perpetual lease to the wind resource rights on the property. This can be a disadvantage, as the value of wind power is expected to increase over time. Basing the lease on a share of revenues is likely to be the best option for capturing future increases in the value of wind power.

Owning a Turbine

Farmers can generate their own power from the wind, small wind generators, ranging from 5 kilowatts to 40 kilowatts or more, can meet the needs of an entire farm or can be targeted to specific applications.  
"Net metering" enables farmers to get the most out of their wind turbines. When a turbine produces more power than the farm needs at that moment, the extra power flows back into the electricity system for others to use, turning the electric meter backwards. When the turbine produces less than the farm is using, the meter spins forward, as it normally does. At the end of the month or year, the farmer pays for the net consumption or the electric company pays for the net production..

The Farmer as Wind Developer

A third opportunity for a farmer or group of farmers is to become a wind developer who produces power to sell to others. Electricity companies increasingly buy their power from independent power producers rather than generating it themselves. They are also increasingly offering "green" or environmentally friendly power products and may be looking for suppliers of wind power. In addition, a number of states and the federal government provide incentives for wind power development.

Becoming a wind power developer has some important challenges, however. Purchasing one or more large wind turbines can be a substantial investment for even a large farm operation. Green markets are creating a place for niche products, the market for green power is still young and profit margins are may be considerable in the coming years as utility prices increase. Farmers willing to take the risk could become wind investors as well. Pooling resources with other farmers can be an attractive option for reducing risk and lowering costs. Cooperative ownership of one or more turbines is common in Europe and is starting to take hold in the UK.

Benefits of installing a wind turbine at your farm include:

• Income for up to 30 years.
• Rental Incomes in excess of £2,000 per turbine.
• No Labour or expense if working with a developer.
• Benefits for community and environment.
• Renewable energy combats global warming.
• Government Policy.
• Sustainable and diverse energy supply.
• Green electricity for local consumption.

Enviko is involved with careful site selection, optimised site layouts and widespread consultation. We will completely prepare and progress the planning application, taking care of all aspects of the development process, from commissioning environmental studies to liasing with the local community, all at no cost to the landowner. Our flexible structure allows landowners to participate as much or as they would like.

We pride ourselves on the strong relationships that are formed with landowners. Working closely with them, we will see a project right through to the end, even if it means taking a planning decision to appeal.

Please click here to download our Farm Owners Information Brochure.

For a list of Frequently Asked Questions please click here.

Please feel free to get in contact with us by email or call 0845 189 9894 to discuss any of your requirements.