Photovoltaics for the farmer

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 bill500  PLN1000 PLN2000 PLN3000 PLN
Recommended power of the installation10 KW20 KW40 KW50 KW
Net cost31 900 PLN62 800 PLN126 300 PLN144 900 PLN
Cost including agricultural tax relief23 925 PLN47 100 PLN94 725 PLN108 675 PLN
Installation savings for 25 years209 857 PLN411 801 PLN823 077 PLN1 038 577 PLN
Payback period4,25 years4,2 years4,1 years4 years