A string of benefits alone
Increasingly, farm and livestock farms are seeing photovoltaic installations on the roofs of farm buildings. This does not happen without reason, they are large consumers of energy, as energy bills can be as high as 20% of overheads, and electricity prices are constantly rising…
Photovoltaics How does it work, and what are its advantages?
A photovoltaic system generates electricity from the sun’s rays, which a farm can use throughout the year. The energy produced is used for current consumption needs, and the surplus produced is stored in the power grid 80%, as 20% is deducted by the power utility for “storage”.
Of course, the surpluses will return to us at times when production is lower – evenings and the autumn-winter period. A farmer or rancher who pays agricultural tax has the opportunity to deduct 25% of the cost of photovoltaic installation from the amount of tax – this form of support can be called photovoltaic subsidy and can be used for up to 15 years!
For example, if we assume that the value of the installation will be 40 thousand zloty, then the farmer in the form of tax exemption will gain 10 000 zlotys.
That is, even paying agricultural tax of PLN 1,000 per year, it means that for 10 years he will not pay agricultural tax. Therefore, it can be assumed that the cost of the installation will be lower by 25%.
Photovoltaics and VAT
Another plus for agricultural and livestock farms that are active VAT taxpayers can calculate photovoltaic installations at net rates.
VAT, of course, will be refunded after such an investment. There is also a second form – installing photovoltaics on a residential building, and then you can apply the VAT tax credit at 8%. It is an option aimed mainly at farmers who are not VAT payers and cannot be reimbursed for this.
AgroEnergia - a new subsidy for farmers
“AgroEnergia” is a new program aimed at those running agricultural and livestock farms, which gives the opportunity to apply for a grant or loan from the National Fund for Environmental Protection and Water Management.
The budget allocated for this is about PLN 200 million, of which PLN 120 million for loans and PLN 80 million for non-refundable grants.
For the second option, the amount can cover up to 40% of the cost.
| Monthly electricity bill | 500 PLN | 1000 PLN | 2000 PLN | 3000 PLN |
|---|---|---|---|---|
| Recommended power of the installation | 10 KW | 20 KW | 40 KW | 50 KW |
| Net cost | 31 900 PLN | 62 800 PLN | 126 300 PLN | 144 900 PLN |
| Cost including agricultural tax relief | 23 925 PLN | 47 100 PLN | 94 725 PLN | 108 675 PLN |
| Installation savings for 25 years | 209 857 PLN | 411 801 PLN | 823 077 PLN | 1 038 577 PLN |
| Payback period | 4,25 years | 4,2 years | 4,1 years | 4 years |