NFU Energy: Winter 2023/2024

A special publication by

NFU ENERGY Winter 2023/2024

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Dear Readers, Welcome to another edition of NFU Energy’s special publication magazine, crafted exclusively for the resilient and forward-thinking farmers and growers who are at the forefront of transforming our agricultural landscape.

In this issue, we delve into a myriad of topics that are vital for the prosperity of your business and the well-being of our planet.

First and foremost, we explore energy efficiency measures, a cornerstone of modern farming. We understand that improving your energy efficiency is not just about cutting costs, it’s about securing the future for your farm.

Following a recent visit to a dairy farm in West Sussex, on pages 4-5 we provide real-life insights, practical tips and potential savings, illustrating the power of energy conservation.

A common concern among many of you is standing charges. You work hard to balance the books, and unexpected expenses can disrupt your budget. On page 8 you can find guidance on overcoming standing charge surprises, ensuring you have a clear and predictable financial future.

The rise in renewable technology and electric vehicle charging points have garnered attention lately. We answer your question, “are renewables right

Tim Crocker, NFU Energy Managing Director

for my business?” We share insights into the benefits and considerations of adopting renewable energy solutions on your farm, whilst also shedding some light on the potential of home-grown perennial energy crops following Government’s latest Biomass Strategy.

NFU Energy on the road early 2024

While the UK’s Renewable Heat Incentive (RHI) scheme has ended, there are still opportunities to benefit.

On page 15 we explain how you can buy RHI-accredited boilers, maintain accurate meter calibration, replace your boiler, and update your RHI application to remain compliant and continue to receive RHI tariffs.

We’ll be joining the NFU and NFU Mutual on their stand at the National Exhibition Centre (NEC), Birmingham.

You’ll also find a dedicated section on key dates to be mindful of when it comes to energy compliance and regulation for 2024.

As we move forward, remember that NFU Energy is here to provide the knowledge, support and guidance you need to thrive in an ever-changing world. Your role in nurturing our lands and embracing sustainability is pivotal, and we’re here to empower you every step of the way.

Thank you for choosing NFU Energy, and we look forward to accompanying you on your journey towards a more sustainable and prosperous future.

LAMMA

17-18 January

Dairy Tech 7 February

We’ll be joining the NFU on their stand at the National Agricultural Exhibition Centre (NAEC), Stoneleigh Park.

NFU Conference 20-21 February

We’ll be at the International Convention Centre (ICC), Birmingham for the NFU’s annual conference.

Low Carbon Agriculture Show 6-7 March

NFU Energy will be exhibiting at the National Agricultural Exhibition Centre (NAEC), Stoneleigh Park.

The Distributed Energy Show 13-14 March

Find us on stand 5005 at the Telford International Centre, Telford.

Pig & Poultry Fair 15-16 May

We’ll be joining the NFU on their stand at the NEC, Birmingham.

www.nfuenergy.co.uk | 024 7669 6512 |

3

From Cows to Kilowatts: Tolmare Farm’s Energy-Efficient Future There’s never been a better time to think seriously about energy efficiency, which is something dairy farmer Caroline Harriott and herd manager, Ian Hamblin of Tolmare Farm were keen to get a better understanding of for their dairy enterprise.

After being introduced to NFU Energy, Jonathan Sandercock, one of our project engineers, visited the team at Tolmare Farm to conduct a comprehensive on-site energy audit to establish whether any energy efficiency improvements could be made.

Annual savings identified: • 1 0,000kWh of electricity • 2 ,000kg of carbon equivalent emissions • £2,800 annual savings Milking efficiency Tolmare Farm, home to 180-200 contented cows, each producing an impressive 10,000 litres of milk per year, was already making strides in energy conservation. From Jonathan’s keen observations during the audit, it was evident that the farm had already adopted some energy-saving measures.

These included clever tactics like heat recovery from the milk cooling system to preheat wash water and the use of energy-efficient LED lighting.

4 | www.nfuenergy.co.uk | 024 7669 6512

However, there were still opportunities for further annual savings, and the audit pinpointed one key area: milk cooling and refrigeration. The farm’s current system pre-chills milk through plate heat exchangers, which is then further cooled by the refrigeration system. By maximising the ‘free cooling’ effect of the plate heat exchanger through a variable speed-controlled milk pump, they could reduce the workload on the refrigeration system, potentially saving a substantial £814 each year.

Vacuum Pumps Another energy-saving revelation was the opportunity to install Variable Speed Drives (VSDs) on the vacuum pumps.

Often oversized to handle exceptional circumstances, vacuum pumps usually only need to operate at 70-80% of their maximum output. The conventional approach involves using an air admittance valve to modulate system pressure, while the pump operates at full power. By using VSDs to modulate pump speed instead, Tolmare Farm could make significant energy savings.

The farm’s two 3kW rotary vane vacuum pumps, used daily for extended periods, were ripe for the installation of VSDs. With an average daily runtime of seven hours, it was estimated that VSDs could deliver annual savings of over £2,000 through reduced energy consumption.

Lighting Although lighting wasn’t a major energy consumer at the dairy, it played a crucial role in the well-being of the cows and overall farm productivity. Many fixtures had already been upgraded to energy-efficient LED equivalents, aligning with industry best practices.

Studies suggest that providing evenly distributed lighting in cattle housing, feeding areas, and parlours have a host of benefits, including increased milk production of up to 7% compared to poorly lit barns.

To ensure the cows receive the optimal lighting conditions, a Long-Day Photoperiod Treatment (LDPP) was recommended, with 16 hours of adequate lighting during the day and eight hours of low light or darkness at night. This not only will boost milk production, but also improve the health and growth of calves and heifers.

For cows entering their dry period, a Short-Day Photoperiod Treatment (SDPP) of eight hours of light and 16 hours of darkness has been found to enhance postpartum milk production.

These lighting treatments also yield other advantages, such as improved immune response, reduced risk of mastitis, lower somatic cell counts in milk, enhanced fertility, and faster calf and heifer growth. To maintain operational consistency and achieve these benefits, the farm should consider the installation of an advanced lighting control system.

Renewable Energy With the increased volatility of the energy market, many farmers are looking for ways to protect themselves against future uncertainty and become more self-sufficient. A solar photovoltaic (PV) system would help offset energy costs, and would be a reasonable long-term investment; however, energy storage will be necessary to maximise the potential of this system.

Provided over 70% of the renewable electricity can be used on the farm, we anticipate a payback of 6-7 years, assuming an energy rate of £0.30/kWh. What’s more, up to 25% of the capital cost for solar PV can be discounted through the Calf Housing for Health and Welfare grant in England, provided it is incorporated into new calf housing.

Tolmare Farm’s commitment to energy efficiency and sustainability was not just about saving money; it was a testament to their dedication to responsible farming and a greener future.

If you’re considering having an energy audit, get in touch with the team today.

Our team of experts can help get you on the path to a sustainable future. Call us on 024 7669 6512 or email sales@nfuenergy.co.uk.

www.nfuenergy.co.uk | 024 7669 6512 |

5

Cultivate your Future... ...with Solar PV and Battery for your farm.

Large roof areas on agricultural buildings offer significant opportunity to generate power and new income streams via Solar PV and battery systems. They don’t require planning permission, are easily installed and need minimal ongoing maintenance. For agricultural operations with a high energy requirement, such as refrigeration units, poultry housing, milking parlours, grain storage etc. matching this usage to the daytime generation maximises energy efficiency, so reducing the additional cost of importing energy from the grid.

Battery storage also provides new opportunity for farmers to store excess energy to use as required or sell back to the grid when tariff rates are at their highest. In addition, large spaces can now be heated very effectively with Air or Ground Source Heat Pumps.

Contact Caplor Energy Today Designed by farmers, for farmers info@caplor.co.uk |01432 860644 |www.caplor.co.uk

What is it?

Solar

Solar photovoltaic panels (often referred to as Solar PV or PV) capture the sun’s energy and convert it to electrical power. Solar panels do not need direct sunlight to work, they can still generate some electricity on a cloudy day.

Benefits of Solar

• Solar PV has become significantly cheaper, falling from £4/watt in 2000 to £0.16/watt in 2020. Costs are still falling, but at a slower rate.

• PV panels are a scalable form of energy generation, meaning the system can be adjusted to suit any site’s energy demand and offset energy bills as much as possible.

• The environmental benefits of a domestic home switching to solar PV can save, on average, one tonne of carbon emissions per year.

• Applying industry standards, a typical solar PV system has an economic payback time of 5-7 years provided it is professionally modelled to suit your demand.

Solar PV Performance

• Houses and businesses that are best suited to solar PV output use electricity during the daytime, ideally peaking in the summer months.

• A medium sized array on a rooftop (50 kW) would require 350-400m2 of roof space. Installed on a southfacing slope, this could generate around 45,000 kWh of electricity.

• Alternatively, a 50 kW system could be ground mounted on metal frames, requiring approximately a third of an acre of land (0.1 ha). The advantage of this is that the system could be aligned due south and angled at 35 degrees to obtain optimal performance. The disadvantage is that planning permission would be required, and this would add time and cost to the project.

Solar PV Siting & Planning Permission • A PV installation is best sited on a large, south facing roof or on open ground.

• Systems that track the sun over the course of the day and throughout the year can be used, although the additional cost of installing these can be more than the return from the extra electricity produced.

• Roof mounted system installations do not generally require planning permission if they are replacing an existing roof. However, buildings subject to conservation status will require planning permission.

• Any commercial/agricultural ground mounted system needs planning permission.

Ongoing Costs

• Replacement of hardware: inverters will need replacing every 10-15 years, at a cost of £500£1,500 per inverter. One string inverter usually connects to 14 panels.

• Maintenance: most installers provide a maintenance and cleaning service for 1-3 years following installation, at an average cost of £150/year. Panels can be cleaned yourself at no cost.

Financial Returns

• Once you have bought your solar panels, maintenance and operating costs are small.

• Your potential savings are linked to the amount of self-generated energy you consume, as import prices for electricity are generally higher than export prices. By offsetting your energy bills with self-generated power, you can unlock greater savings compared to exporting excess energy back to the grid.

• Example: if your solar PV generates 1,000 kWh surplus, exporting that energy to the grid at 5p/ kWh would make £50. Storing that energy in a battery and using it later, on a tariff costing £0.30/kWh,, would save you £300 on your energy bill.

Batteries

• Batteries use surplus energy at times when your generation is lower than your demand. They are most cost-effective for sites with high overnight energy demand, as batteries last longer when they are charged and depleted on a regular cycle.

• The lifespan of a battery is approximately 15 years so will likely need replacing earlier than the solar panels. However, they are scalable so you can increase the storage capacity by increasing the number of batteries, in addition to spreading out the cost.

• Costs begin from approximately £4,000 with installation but are most commonly fitted as part of a renewable energy generation system such as solar PV or wind.

Explore our collection of Renewable Energy Solutions guides at NFU Energy to see what renewable technology is best suited to your business. Scan the QR code and get your free download!

www.nfuenergy.co.uk | 024 7669 6512 |

7

HH Meter Standing Charge Surprises: Navigating TCR Charges with NFU Energy The energy landscape is ever evolving and standing charges have become the latest surprise for many customers who are now facing a new challenge - dealing with substantial hikes in their standing charges. We catch up with Candace Robb, Senior Energy Consultant at NFU Energy who talks us through what members can do to overcome these surprises.

you provide some Q Can insights into the impact of

How can businesses with Q high voltage meters

rising standing charges for members, particularly those with low voltage Half-Hourly (HH) meters, and what steps can they take to mitigate these costs?

effectively navigate the substantial standing charges, and what is the recommended timeline for initiating capacity reduction strategies?

A

High voltage meters with a capacity of 1800+ kva are facing staggering standing charges, reaching as high as £100-130 a day.

Certainly, at NFU Energy, we’ve been keeping a close eye on these developments and have previously discussed the Targeted Charging Review (TCR) and the associated banding that was expected to be implemented. But what’s become crystal clear over the past few months is the extent to which standing charges have surged, leaving many members taken aback upon receiving their renewal quotes.

Below is a guide of how it will affect those members who have low voltage HH meters. For high voltage meters, we have seen charges of over £100 per day for band 4, which is a capacity of 1800 + kva.

For those with low voltage HH meters, the impact can be observed across different bands, each corresponding to specific capacity levels: • Band 1 (Capacity 1-80 kva): Standing charges are averaging around £6-9 a day.

• Band 2 (Capacity 80-150 kva): Expect standing charges to be approximately £10-13 a day.

• Band 3 (Capacity 150-231 kva): Standing charges are currently ranging from £19-25 a day.

• Band 4 (Capacity 231+ kva): Standing charges are currently ranging from £38-50 a day.

8 | www.nfuenergy.co.uk | 024 7669 6512

A

These rates are indicative and can vary, so it’s crucial to verify your current capacity and explore the possibility of reducing it before your next contract comes into play. However, keep in mind that this process takes time and requires a lead time of around 3-4 months ahead of your contract expiry date, to ensure smooth transitions.

How can NFU Energy assist Q clients with this process to

avoid unfavourable long-term consequences?

NFU Energy, we understand the A Atcomplexities of the energy market,

and our team is well-equipped to guide you through this challenging period. We’ve already helped numerous clients navigate the TCR changes and secure reduced standing charge bandings. We even achieved a phenomenal annual cost reduction of £15,000 for one of our valued customers!

Don’t hesitate to reach out to our commercial sales team by calling 024 7669 8910 if you believe you fall into a category eligible for a standing charge reduction. Our experts will provide the advice you need to make informed decisions and take control of your energy costs.

Cost-effective Efficient Secure supply

Wind turbine installation suitable for all farm sizes Save money whilst working towards a greener future

No matter how much farmland you own, Infinite can find an energy solution that works for you We also offer other renewable options Solar

Battery storage

CHP

Start saving money on energy costs today 01656 644 477 hello@infiniterenewables.com www.infiniterenewables.com

As the Electric Vehicle (EV) market continues to climb, with around 900,000 electric cars on UK roads as of September 2023¹ – a 35% increase from 2022, there’s never been a better time to consider electric vehicle solutions for your land.

Many sites (business and domestic) are now considering the installation of electric vehicle charging points, both to help with the charging of family run vehicles, but also to provide charging for business vehicles and for on-site help to visitors at sites such as caravan parks and farm shops. See if it’s worth electrifying your land below!

The Green Road Ahead A Spotlight on Electric Vehicle Solutions

YES

Do you own a business and want to provide charging options for employees and visitors?

NO YES

Do you have a small number of electric vehicles that require charging?

YES Do you own your land and if so, are you looking for an additional source of income by leasing your land for electric vehicle charging stations?

NO

Are you considering purchasing an electric vehicle in the near future?

NO NO

YES

Multiple Charging Points

Land Lease Opportunities

Single Site Solution

Discover the convenience and efficiency of our multiple EV charging points service. Designed to meet the growing demand for EV charging infrastructure, our solution provides a network of chargers tailored to your needs. Whether you manage a business or public facility, our service offers scalable and accessible charging options for your customers, employees, and visitors.

Stay ahead in the electric vehicle revolution with our reliable and future-ready charging solution.

Unlock a new income stream by leasing your land for EV charging points. Our land lease service offers a lucrative opportunity for landowners, farmers, and property managers. Here at NFU Energy we have partnered with a range of suppliers to provide a full service to help you with the installation of charging points, as well as help accessing funding that is available and ongoing support with the installation and management of the charging points.

Simplify your EV charging needs with our single site solution, perfect for family vehicle charging. Enjoy the convenience of a dedicated home charging station, ensuring your EV is always ready for the road.

If you are thinking about making the switch to electric vehicles but aren’t sure or need to present a full business case, it might be worth having us crunch the numbers to see if it’s right. Talk to one of our friendly team on 024 7669 6512 for advice.

For more information on all available options for your business, give the team a call on 024 7669 6512 or email sales@nfuenergy.co.uk

10 | www.nfuenergy.co.uk | 024 7669 6512

¹The Society of Motor Manufacturers and Traders (SMMT), September 2023

Acquiring land for EV charging hubs

As one of the UK’s fastest growing EV charging networks, Zest is partnering with landowners to unlock revenue from unused land.

Find out how to unlock value in your land at:

zest.uk.com/land

A knowledge exchange programme helping growers save energy.

The GrowSave project has been helping horticultural growers save energy for over 10 years by facilitating access to the latest technical information on energy saving techniques and technologies to cut use and cost.

Visit www.growsave.co.uk

SOLAR PANELS AND CLEAN ENERGY Save money and gain energy independence.

A typical solar panel system will provide free electricity for 25+ years, achieve a ROI up to 20% per year and pay back installation costs in less than 5 years.

GET A FREE DESKTOP SURVEY:

0333 772 1800 | www.solarsense-uk.com

Solar Panels | Energy Storage | Heat Pumps | Solar Thermal | Solar Carports | EV Charging

12 | www.nfuenergy.co.uk | 024 7669 6512

Home-grown biomass production opportunity highlighted in latest Biomass Strategy The Government’s long awaited Biomass Strategy has once again highlighted the opportunity for home-grown biomass production in the UK; including government projections that planting rates could increase to about 15,000 hectares per year in England by 2035, starting from a very small base today.

Jonathan Scurlock, NFU Chief Adviser for Renewable Energy and Climate Change says, “although perennial crops won’t appeal to every farmer, they can offer potentially stable diversification of farm income, together with multipurpose land use which can provide game cover, harbour biodiversity and perform other ecosystem services such as slowing floodwaters or capturing diffuse pollution.”

“Importantly, when located in less productive land, they can be managed in a sustainable fashion that works alongside rather than competing against food production or other environmental targets.”

Although biomass crop industry information is widespread, it can sometimes be biased and outdated.

Additionally, crop planting is a long-term (~20 year) commitment, hence, there is no room for mistake. That’s why NFU Energy, together with the Agri Food and Biosciences Institute (AFBI) in Northern Ireland, Crops for Energy and software developer Calvium have launched Envirocrops – a project that’s been funded by the Department for Energy Security and Net Zero (DESNZ) to offer a unique platform that puts you in control of biomass production.

Learning Envirocrops.com provides a hands-on learning experience, allowing farmers and landowners to simulate real-world agricultural scenarios. Users can make decisions on crop choices by comparing predicted yields, input costs, and crop management to match their land size and climate, giving them a clear understanding of the opportunities for growing biomass crops.

Sustainable Solutions The Science, Technology, Engineering and Mathematics (STEM) game ‘Cropper’ encourages players to tactically budget costs while harvesting different biomass crops, as well as making vital decisions around pest management and unexpected events. By exploring these solutions in a virtual environment, users can gain insights into how they can be implemented in real-life farming systems.

Collaborative Research Opportunities With a growing community using Envirocrops, the website will serve as a directory for all the main players; a price comparison tool, and vast encyclopaedia of information, giving users one-stop-shop access to all the knowledge and contacts they need as they venture along their biomass production journey.

Practical Applicability The knowledge and skills acquired through Envirocrops.com have real world applicability. Students, farmers and consultants can use their findings to inform and enhance sustainable farming practices, contributing to Net Zero targets and the ongoing global efforts towards food security and environmental preservation. By delving into the virtual world of sustainable agriculture, users can unravel innovative solutions and collaborate with likeminded individuals.

Envirocrops is more than just a research topic; it is a gateway to building a greener, more sustainable future for agriculture and our planet as a whole. So, for farmers and landowners ready to make a difference, Envirocrops awaits your exploration!

Visit envirocrops.com to get started

www.nfuenergy.co.uk | 024 7669 6512 |

13

At NFU Energy, we help you stay ahead of the ever-evolving energy landscape, helping you stay compliant with all necessary schemes and providing you with a gateway to unlocking various incentives. Here’s some key dates to bear in mind in 2024*.

3

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For all of your energy needs, contact our friendly team on 024 7669 6512 or email us at sales@nfuenergy.co.uk. *Subject to change. Correct at time of print.

14 | www.nfuenergy.co.uk | 024 7669 6512

Fuelling Your Future: Post-RHI Renewable Heat Opportunities The Renewable Heat Incentive (RHI) scheme, which aimed to promote the adoption of renewable heating technologies in the UK, has officially ended. However, this doesn’t mean that the opportunity to benefit from renewable heat technologies and remain compliant with the scheme’s regulations has vanished. We’ve addressed some key questions about the RHI scheme, highlighting how you can still benefit from it and the importance of staying compliant with its requirements, even after the scheme’s conclusion.

Did you know... ...you can buy RHI accredited boilers and benefit from the scheme?

The RHI scheme had a fundamental goal of promoting the utilisation of renewable heating technologies, including those featuring RHI accreditation. Even if you missed the application deadline, there’s still an opportunity to benefit from this scheme by purchasing an already accredited boiler. Ensuring the heating system aligns with the RHI’s eligibility criteria is paramount. By investing in an RHI-accredited boiler, you can still significantly reduce your carbon footprint and enjoy the financial incentives that the scheme offers.

meters should be recalibrated every ten years to guarantee precision in recording the heat generated by your renewable heating system.

...you can replace your boiler and still receive your RHI tariff?

You can replace your existing boiler with a newer, more efficient one and continue to receive your RHI tariff. The capacity can change, you can install a smaller boiler where your Tier 1 allowance will shrink to the new boiler’s capacity, or you can install a larger boiler and your Tier 1 will remain the same as the original. You must ensure the heating system remains compliant, which will allow you to enjoy the benefits of the RHI scheme even after upgrading your heating system.

…you need to get your meters recalibrated after 10 years on the RHI scheme?

...Ofgem is expected to audit your system twice within the RHI scheme?

Maintaining accurate measurements is essential within the RHI scheme. As a participant, you are required to ensure that your heat meters are calibrated to maintain the integrity of the data used to calculate your RHI payments. The

Periodic audits by Ofgem, the regulator of the RHI scheme, are part of the program’s accountability and transparency measures. Ofgem conducts these audits to verify the accuracy of the data provided by

participants and to ensure ongoing compliance with the scheme’s rules and regulations. By being prepared for these audits and maintaining meticulous records, you can navigate them smoothly and continue to receive your RHI payments without interruptions.

...that when you change your system you need to amend your RHI application?

Updating your RHI application is necessary when you make significant changes to your renewable heating system. This includes changing pipework, changing your heat uses or adding other boilers. Ofgem requires you to notify them within 28 days of any changes by updating your application.

This is to ensure your RHI payments remain accurate and compliant with the changes you’ve made.

The RHI scheme, despite its official closure, offers continued opportunities for businesses to adopt renewable heating technologies and reap the associated benefits. If you’re looking for expert guidance and assistance in navigating the intricacies of the RHI scheme, NFU Energy is here to help. To find out more, contact a member of the NFU Energy team today on 024 7669 6512 or visit www.nfuenergy.co.uk

www.nfuenergy.co.uk | 024 7669 6512 |

15

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GET 5% OFF* ANY POWERVAULT SYSTEM

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Remote monitoring

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Visit: powervault.co.uk | Call: 0203 653 1111 CASE STUDY: COLERIDGE FARM – DEVON Towards the end of 2022, Melissa & Richard Darke invested in a Powervault smart battery storage system for their dairy farm. This has drastically reduced their energy bills by allowing them to harness more energy generated from their wind turbines. Additionally, this investment has moved them one step closer to their important "net-zero farm" goal.

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Less energy purchased per year

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I would definitely recommend Powervault, the team have demonstrated willingness to go above and beyond.

Richard Darke, Coleridge Farm

*This offer ("The Offer") is subject to additional terms and conditions. The Offer ends 21st December 2023 unless extended.

Powervault Limited reserves the right to withdraw The Offer at any time. The Offer is for a discount of 5% off hardware purchased directly from Powervault Limited at the retail price. The Offer cannot be used in conjunction with any other promotions or discounts.

3.1 TONNES of CO2 saved