High Street help for farmers to invest in green energy

Britain’s biggest supermarket has joined forces with one of the UK’s biggest banks to offer farmers a green energy finance package.

Retail giant Tesco and NatWest have come together to launch a discounted climate and sustainable finance scheme – giving 1,500 of the supermarket’s suppliers preferential rates on borrowings to invest in green energy.

Renewable energy

The scheme aims to help producers adopt sustainable farming methods. It covers the installation of renewable energy sources, such as solar panels and wind turbines, and fossil fuel-free heating or cooling systems, such as heat pumps.

Eligible farmers include those who belong to Tesco’s Sustainable Farming Groups for beef, lamb and dairy. They will gain access to Tesco’s preferred suppliers, with potential volume discounts offered on renewable energy assets.

More than 50% of Tesco farmers say they want to adopt more sustainable practices. But doing so often requires up-front investment in equipment – and access to funding can be an obstacle.

Now farmers will have access to preferential rates through Lombard, part of NatWest. As well as solar panels, wind turbines and heat pumps, the agreement covers biomass boilers, LED lighting, battery storage and combined heat and power.

Tesco chief commercial officer Ashwin Prasad said: “The initiative will provide our farmers with the confidence to invest in sustainable farming methods and infrastructure, while also helping us meet our [net zero] targets.”

Keen adopters

Dairy farmer Dave Jones, who is also chairman of Tesco’s Sustainable Dairy Group, said many milk producers were keep to adopt more sustainable production methods like installing renewable energy technology on farm.

“Accessing financial support for significant projects like this remains a barrier for many farmers,” said Mr Jones. The Tesco and NatWest partnership could help overcome this hurdle and reduce farm emissions.”

Peter Huish, Head of Consumer Industries at NatWest Group, said: “We strongly believe that to deliver a more sustainable future, partnering with leading UK consumer companies such as Tesco, and their supply chains, will be critical.

“This initiative further contributes to the UK’s climate goals and food security, as well as to NatWest’s pledge to provide £100bn of climate and sustainable funding and financing by the end of 2025.”