Wind Turbine Finance Overview
Farm wind turbines represent a significant capital investment but can generate substantial returns over a 20–25 year operational life. Finance allows farms to install turbines without tying up large amounts of working capital, with repayments structured to align with predicted generation income.
The UK's agricultural sector has been a major driver of rural wind energy deployment. Lenders with dedicated agricultural teams - including Close Brothers and Aldermore - understand the planning, grid connection and income dynamics of farm wind projects better than general commercial lenders.
Finance Options for Farm Wind Turbines
Agricultural HP
The most common structure. Fixed deposits and monthly payments. You own the turbine at the end of the agreement. Capital allowances (full expensing) available in year of purchase.
Finance Lease
Lender owns the turbine; you pay rental. Payments are revenue expenditure. Useful where ownership is less important or where balance sheet treatment is a consideration.
Project Finance
For larger turbines (500 kW+), project finance structures are available where the turbine's generation income is the primary security. More complex to arrange but can fund up to 90% of project cost.
Lender Rates for Wind Turbine Finance - October 2026
| Lender | Rate From | Max LTV | Max Term | Notes |
|---|---|---|---|---|
| Close Brothers | 6.5% APR | 80% | 10 years | Strong appetite |
| Aldermore | 6.8% APR | 75% | 7 years | Planning required |
| Shawbrook | 7.0% APR | 75% | 7 years | Case by case |
| Lombard | 7.2% APR | 70% | 7 years | Larger schemes |
Key Considerations Before Applying
Before applying for wind turbine finance, ensure you have addressed the following:
- Planning permission - granted or near-final. Lenders will not commit funds to a project without planning certainty.
- Grid connection offer - a formal grid connection offer from your DNO (Distribution Network Operator) is typically required.
- Wind resource assessment - an independent wind report (P50/P90) strengthens the lender's confidence in projected generation income.
- PPA or export tariff - a Power Purchase Agreement secures your income and is viewed positively by lenders.
- Installer credentials - MCS-accredited or equivalent installer documentation.
- Insurance - turbines must be insured; some lenders specify minimum coverage levels.