Special Energy
Energy on the farm: from side income to business
Agriculture led the way in sustainable energy for years. Wind turbines in the fields, solar panels on the barn, and biogas installations at the back of the yard—and now batteries too. Farmers were often ahead of the rest of the business world. But anyone who thinks that energy is still a relatively secure side income will be sorely mistaken in 2026.
| This article is part of the Energy theme special. |
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In a short time, energy has transformed from a cost item into a potential source of revenue. But how robust is that revenue model actually? In this theme special Starting in April, in various articles, we take a step-by-step look at the reality behind energy on the farm. From pricing and financing to subsidies and practical returns. What does it really yield, and where do the risks lie? We speak with entrepreneurs and advisors and test the financial issue in practice. The central question: will energy become a reliable second pillar supporting farmers' revenue models? |
The market has matured. It has also become more complex. "The agricultural sector has been the pioneer in the generation of sustainable energy for decades," states Hans van den Boom, Business Developer Sustainable Business Food & Agri at Rabobank. "But the business model is no longer a given and increasingly requires customization."
At the same time, a clear message is coming from the Energy Expertise Centre Flevoland (EEF): the energy transition must remain accessible to everyone. "Everyone must be able to participate in the energy transition, including farmers," says Ranès Rioza.
Less obvious revenue model
While solar energy was easy to calculate for years, that picture has shifted. Falling costs helped, but at the same time, negative electricity prices and the phasing out of schemes such as net metering are depressing revenues.
A battery often seems like the logical next step, but there is no guarantee there either. On paper, storage can generate extra income, for example via the imbalance market. In practice, however, this proves difficult to predict.
For many farmers, the safest route therefore remains on their own farm: storing electricity and using it themselves later, rather than supplying it at low or even negative prices. Companies with a constant energy demand, in particular, can benefit from this.
In practice, EEF observes that this is precisely where the first steps are being taken. Not only with technology, but also with insight. "For example, we first look at a company's energy profile and whether there are smart solutions, such as storage or collaboration with neighbors to make better use of grid capacity," says Rioza.
Subsidies remain crucial for the time being.
Despite all developments, subsidies remain necessary in many cases to make projects financially viable. The SDE scheme still plays a key role in this. Without support, the risks are simply greater. "Energy markets are difficult to predict, so without SDE, market risks are high," according to Rabobank.
However, the playing field is shifting. Invest-NL observes that energy projects are slowly becoming less dependent on subsidies and relying more on market mechanisms. New revenue models are emerging around flexibility, storage, and smart connections with the energy system.
At the same time, EEF nuances that picture. Whether a subsidy is needed depends heavily on the individual company. Rioza: "If the cash flows are sufficient and an entrepreneur can invest a portion themselves, then a subsidy is not necessarily needed."
Financiering
While Rabobank primarily focuses on large-scale and quantifiable projects, EEF positions itself as a complement to the market. The center also finances smaller or riskier projects where banks often decline. "We provide financing when regular parties often do not, for example because it is innovative or involves smaller amounts," says Rioza. This means that entrepreneurs without a large scale or a perfect business case can also take steps, provided the plan is sound. Financing covers up to a maximum of 75% of the investment, with the remainder coming from own resources.
Invest-NL is positioned another level higher in the chain and focuses primarily on scaling up new markets and concepts. The focus is not so much on the individual project, but on the system behind it.
Bigger and more professional
What stands out most is the increase in scale. Energy projects are becoming larger and require more capital. This has everything to do with grid congestion, regulations, and technical complexity. "We see that the market is evolving towards larger and more capital-rich projects, partly due to the complexity and required investments," says Marinus Boogert, team lead business development at Invest-NL.
As a result, the playing field is also changing. Large energy companies and investment funds are increasingly getting involved. Yet farmers are not disappearing from the picture. "The strength of farmers is that they are flexible, have locations, and often view energy as part of their business operations," states Van den Boom of Rabobank.
According to the Energy Expertise Centre Flevoland, that role must also be preserved. "There are relatively many farmers in Flevoland, so it stands to reason that we also actively focus on this target group," says Rioza.
Green gas as a promising route
Green gas from manure digestion is seen as one of the most promising directions. Not only because of energy production, but also because of its role in emission reduction and circular agriculture.
According to Rabobank, a structural change is even on the horizon here. Manure digestion can develop into a permanent part of business operations. "By 2040, a low-emission livestock farm will supply manure to a digester or, with sufficient scale, have one on its own premises."
Due to changes in the Manure Act in the second quarter of 2026, the green light has been given for green gas from mono-manure digestion and the production of the fertilizer substitute Renure, according to Rabobank. "However, appropriate permitting is required," adds Van den Boom.
According to Rabobank, solar energy and batteries can still be made profitable in many cases. However, according to the bank, these systems require more research due to the discontinuation of net metering for small consumers and an increasing number of hours with negative electricity prices, leading to the combination with a battery being used more frequently. According to the bank, onshore wind farms remain a growth market, where SDE subsidies and long-term contracts are decisive for profitability.
No boring playing field
Anyone who thinks that energy projects now yield a 'boring and predictable' return is mistaken. The sector is actually moving faster than ever, influenced by geopolitics, policy, and market dynamics. "An energy project is never boring," states Rioza. "Global developments can actually make it even more attractive."
New markets are emerging, such as green gas, hydrogen, and other sustainable fuels. At the same time, risks are increasing and specialized knowledge is becoming increasingly important.
Continuing role for the farmer
Despite scaling up and increasing complexity, agriculture remains an important player. The sector possesses space, raw materials, and entrepreneurship – precisely the ingredients needed in the energy transition.
But one thing is clear: energy is no longer a given side income. It has become a fully-fledged sector, with both opportunities and risks. Or as EEF summarizes it: investing in energy still pays off, especially for those who take a close look at what is possible.
John Ramaker
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