George Lyon, Liberal Democrat MEP for Scotland, has welcomed the decision by OFGEM and the Department for Energy and Climate Change to allow farmers to apply for the full €200,000 funding available under Feed-in Tariff (FiT) regulations.
There had previously been concerns that farmers in receipt of SRDP grants would not be eligible for FiT funding, or that the funding available would be limited to €7500 under current European regulations.
In a letter to Mr Lyon, the DECC has confirmed that the €200,000 limit will apply for the agricultural sector providing assurance is given that the electricity generated is not used in primary agricultural production.
Commenting, Mr Lyon said:
"This is welcome news for farmers who want to harvest the power of nature to deliver real benefits in tackling climate change as well as providing them with an alternative income.
"The DECC has confirmed that projects that already receive public monies can still apply for FiT funding if they have not exceeded the €200,000 limit as set under de minimis regulations.
"This will allow many farmscale projects to still receive FiT payments in addition to SRDP grants.
"The development of small scale renewables on Scottish farms can now pick up speed which is great news for the agricultural industry."