Quick answer
Farm solar and renewable finance funds systems such as rooftop and ground-mounted solar, batteries, solar-powered pumps and hybrid power for farms and rural properties. Repayments can sometimes be shaped around farm income. Ownright Custom Finance arranges rural renewable finance Australia-wide, including for farms a bank has declined.
Key points
- Solar, batteries, solar pumping and hybrid systems can be financed
- Repayments can sometimes follow the farm's income calendar
- Shed roofs, dairy and cold storage are common uses
- Off-grid and grid-limited properties are catered for
- Suits
- Farmers, graziers, irrigators, dairies, packing sheds, rural landholders
- Security
- The system, and sometimes farm property or other assets
- Structures
- Chattel mortgage, equipment loan, lease, secured facility
- Australia-wide
- Yes
Why are so many farms looking at solar and renewables?
Power is a major running cost on many farms. Irrigation pumps, dairy sheds, cool rooms, grain handling and shearing sheds all draw heavily, and rural networks can be less reliable than city ones. A well-designed solar system, sometimes with batteries, can cut the daytime power bought from the grid, keep critical loads running and reduce dependence on diesel generators.
Whether it stacks up for a particular farm depends on the load pattern, the tariff, the roof or paddock space and the quality of the installer’s design. Finance is how the farm spreads the upfront cost across the years in which the system earns its keep.
What can be financed?
- Rooftop solar on machinery sheds, dairies, packing sheds and houses
- Ground-mounted arrays where roof space is limited
- Batteries to carry evening and overnight loads
- Solar bore and irrigation pumping
- Solar for stock water, troughs and electric fencing
- Hybrid systems that combine solar, batteries and a generator
- Cool rooms and efficient refrigeration, which often sit alongside solar
- Charging equipment for electric utes and farm vehicles
Items should appear on the quote with clear descriptions. For wider farm works, see farm development loans.
How can repayments match farm income?
A repayment schedule designed for a salaried borrower does not always suit a farm. Depending on the lender and the product, there may be monthly, quarterly, half-yearly or annual repayments, or a balloon that reduces regular repayments. The trade-off is that deferred repayments usually mean more owed later, so the structure should be affordable across the whole term.
| Farm type | Income pattern | Structure idea to discuss |
|---|---|---|
| Dairy | Regular monthly milk cheques | Monthly repayments |
| Broadacre cropping | Concentrated around harvest | Annual or half-yearly repayments |
| Livestock | Lumpy around sales | Repayments timed after major sales |
| Horticulture | Seasonal with high labour costs | Repayments aligned to packing and sale periods |
| Mixed farm with off-farm income | Combination | Monthly from off-farm income, plus lump sums |
Our guide on off-farm income and farm lending explains how lenders treat the extra income.
What do lenders look at on a farm?
Cash flow. Recent tax returns, BAS and financial statements show whether the farm can service the new repayment.
Existing debt and security. Lenders consider land, machinery, livestock and any existing mortgages. If the farm is already heavily encumbered, we might look at farm debt refinance or a farm second mortgage in parallel.
The system. Reputable accredited installers and quality products. In remote areas, lenders may ask who services the system.
Land tenure. Owned, leased or shared land affects what security is available.
Read how farm loans work in Australia for the wider picture, and farm equipment finance for related assets.
Are there grants or rebates for farm renewables?
Federal, state and territory governments, and some regional bodies, have run grants and programs for farm energy efficiency and renewables. They differ by region and industry, open and close, and carry detailed eligibility. We do not quote figures. The Clean Energy Regulator explains how small-scale certificates work, business.gov.au lists current programs, and your state agriculture department may have its own. If a grant is awarded, we can arrange finance for the remaining cost.
How does Ownright approach farm renewable finance?
Trevor Scott and the team treat the farm as a whole business. A solar system is a good idea only if the rest of the balance sheet can carry it, so we ask about existing debt, the season ahead and what the family wants for the property over the next decade. We then look at structures that fit, including options other brokers rarely raise, such as a staged install or combining the new equipment with a wider restructure.
Ownright arranges rural finance in every state and territory, from the Murray to the Kimberley, and we are used to remote properties and unusual circumstances. When you are ready, send us your quote and farm details.
An illustration
Illustrative scenario only. A dairy with high daytime power use wants solar on its sheds and a battery to carry the evening milking. The farm already has equipment finance and a working-capital facility. A broker could review the existing facilities, set up a chattel mortgage or equipment loan for the system, and shape repayments to fit milk income. If existing debt is clumsy, restructuring may come first.
Mistakes to avoid
- Oversizing the system compared with how the farm actually uses power
- Forgetting grid connection approvals and network limits
- Ignoring battery replacement costs over the life of the system
- Taking on a term that outlasts the equipment
- Signing with an installer before finance and any grant timing are clear
Documents to have ready
- Installer’s itemised quote and system design
- Recent tax returns, BAS and financial statements
- A schedule of current debts, assets and livestock or crop details
- Land titles or a lease, where relevant
- ID for owners, directors or trustees
Our documents checklist covers the basics.
Where else might I look?
Rural borrowers sometimes combine solar with a farm loan review or look at business solar finance for packing or processing operations. The green finance hub covers everything in one place.
Does the grid connection limit what I can install?
It can. Rural networks sometimes restrict how much solar can feed back into the grid, and approval from the network operator may be required. Some farms opt for systems sized to use power on site rather than export, often with batteries. Ask the installer how the grid connection will be handled and whether an export limit applies. Lenders will want to see that the necessary approvals are in hand, and delays here can affect when funds are needed.
What if the farm is on a family trust or partnership?
Farms are frequently held in trusts, partnerships or companies, and that shapes who signs and what security is offered. A lender may need the trust deed, evidence of the trustee’s authority and guarantees from the principals. It is worth confirming early who will own the system and who owns the land it sits on. Where the farm is going through a succession process, see farm succession finance for the wider context.
Can drought or a poor season affect approval?
Yes, lenders look at recent seasons, and a tough year can affect cash flow. That does not rule out finance, particularly if the system reduces a major cost like power or diesel. We can look at how the farm has handled previous seasons, what supports are in place and whether a different structure is needed. Our page on drought finance and the guide on drought and farm cash flow are useful companions.
Ready to power the farm?
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How it works, step by step
- 1
Step 1
Share the installer's quote and a short summary of the farm's operation and income pattern.
- 2
Step 2
We shape a structure around your seasonal cash flow and decide which security is sensible.
- 3
Step 3
We approach lenders comfortable with rural assets and renewable systems.
- 4
Step 4
Documents are signed, the installer is paid and the system is commissioned.
Frequently asked questions
What farm renewable systems can be financed?
Rooftop solar on sheds, ground-mounted arrays, battery storage, solar bore and irrigation pumps, solar-powered fencing and stock water, and hybrid systems with generators. Wind and micro-hydro are sometimes considered. Each should be itemised on a quote. Specialised or very large projects are assessed individually.
Can farm solar be financed if the farm has existing debt?
Often, yes. Lenders look at total farm debt, cash flow and security. If existing borrowings are heavy or awkward, restructuring may be considered first or in parallel, which is where our work on farm debt refinance comes in. We look at the whole farm, not only the new equipment.
Can repayments follow harvest or sale timing?
Sometimes. Some lenders offer quarterly, half-yearly or annual repayments, or a balloon at the end. These options suit seasonal income but may increase the total cost over the term. We discuss your income calendar and the trade-offs before recommending a pattern.
Is farm solar eligible for incentives?
There have been federal and state measures for rural renewables, including small-scale certificates for eligible systems and various grants, but they change and carry conditions. Check the Clean Energy Regulator, business.gov.au and your state agriculture department for what is current, then bring the quote to us.
What if the property is remote or off-grid?
Remote properties often benefit most from renewable systems, and lenders can finance them. They may ask about the installer's ability to service the site and the warranty arrangements. We explain what lenders typically expect and help you document it.
Can I finance solar on leased farmland?
It is possible, though it adds complexity. Lenders consider lease length, landlord consent and who owns the system if the lease ends. A long lease and a supportive owner help. Bring a copy of the lease early so we can advise how it affects the choice of structure.