From field to grid: The best ways to sell renewable energy as a small farm in 2025
Discover the best ways for small farms to sell renewable energy in 2025 — from PPAs to peer-to-peer models — with fewer gatekeepers and fairer prices.
In 2025, small farms generating renewable energy stand at a unique crossroads. On one side, you’ve got the momentum of rising demand for low-carbon electricity.
On the other hand, there’s Big Energy, rigid systems, opaque pricing, and gatekeepers that make it harder for smaller generators to get a fair deal.
So, how do small renewable farms, solar, wind, and biogas producers, amongst others, find the best ways to sell their energy?
Let’s break this all down and consider what “best” even means when you’re choosing between long-term price security, flexible contracts, or the chance to connect directly with buyers.
What kind of renewable farms are we talking about?
According to the UK Department of Energy Security and Net Zero (DESNZ), as of 2024, over 16,000 renewable generation installations in the UK are classified as small-scale generators under Ofgem’s Feed-In-Tariff and SEG programs.
While every site is different, most small-scale renewable farms fall into a few main groups:
Solar farms: Ranging from a few hundred panels to a few thousand, often built on unused farmland.
Wind farms: Typically involve one or a handful of turbines, either on-site or cooperatively owned.
Biogas producers: Utilising organic waste to generate biogas, which can be turned into electricity or heat.
Hydropower: Less common, but some small farms make use of flowing water from streams or rivers.
Each of these energy sources comes with different rhythms, risks, and revenue models. What do they all have in common? The need for better routes to market.
Why is it so hard to sell energy?
At tem, we deal with business buyers, so that’s what we’ll speak to here…
Selling energy isn’t as simple as flipping a switch. In reality, it means entering a complex, centralised system built for volume, one that wasn’t designed with small generators in mind.
Big Energy tends to favour scale. That means large generators often get priority access, better contract terms, and more stability. Small farms are left trying to negotiate with limited visibility, irregular demand, and often, no real say in the value of their power.
On top of that, getting electricity from your farm to an end-user (like a local business) involves navigating licensing, compliance, metering, and contracts. It’s easy to feel like you’re farming electrons for someone else’s profit.
Volatile prices: A rollercoaster with no seatbelt
Wholesale electricity prices can swing wildly depending on supply, demand, geopolitical events, or even the weather. For small generators, this means income that rises and falls unpredictably.
Spot market prices might look tempting when they’re high, but there’s a catch. Those peaks don’t last, and without price certainty, it’s hard to make long-term decisions or secure finance.
That’s why many farms look for alternatives that offer clearer metrics and greater predictability, so even if they’re taking a risk, they’re doing it with eyes wide open and the right data at hand.
Regulatory red tape: A maze with moving walls
Selling energy also comes with layers of regulation. From licensing rules to grid compliance, it’s a dense space to navigate, especially for farms that don’t have full-time energy specialists on hand.
Take “industry non-power costs” (sometimes shortened to NCCs). These are charges that help maintain the grid and fund wider government policies, but for a small farm, they can feel like hidden tolls on every electron you produce.
And then there’s paperwork: contracts, settlement processes, and data requirements that most generators never see coming. For many small farms, it’s one of the biggest headaches. At tem, we take that weight off your shoulders, streamlining the process and handling the complexities behind the scenes, so you can focus on the generation, not the spreadsheets.
Visibility: If no one sees your power, how do they buy it?
Even with energy flowing, small farms often struggle with a lack of visibility. Unlike large generators, you’re not plugged into the same marketing channels or industry networks.
That means it’s harder to attract buyers, negotiate better rates and even show what makes your energy valuable.
This is one of the reasons why we, tem, exist. Because without visibility, there’s no way to transact fairly.
So, what are the best ways to sell renewable energy?
Let’s explore the main routes to market, each with its pros, cons, and suitability depending on the type of generation.
Power Purchase Agreements (PPAs)
A PPA is a direct contract between the generator and a buyer, usually a business. It locks in a fixed price for your electricity over a period (often 5-15 years), giving you predictable income.
The pros of PPAs
Long-term price stability
Strong investment case
Potential to build lasting relationships with buyers
The cons of PPAs
It can be complex to set up
May involve intermediaries or brokers who take a cut
Less flexibility if prices rise significantly
This can work well for wind farms or larger solar sites with consistent output.
Export tariffs and government-backed schemes
In simple speak, this is when you sell surplus energy back to the grid through programs like the Smart Export Guarantee. These are typically run by licensed suppliers who offer a fixed or variable rate per kWh exported.
The pros of SEG:
Low barrier to entry
Reliable route for excess power
Simple setup, especially for solar
The cons of SEG:
Rates tend to be low
Limited control over pricing
Less attractive for larger generation volumes
This might suit smaller solar farms, particularly those in parts of the UK where sunshine is less consistent. In these cases, export tariffs offer a simple way to earn from intermittent generation.
Peer-to-peer energy models
Think of this like a digital farmers’ market for electricity. P2P platforms allow you to sell directly to businesses or individuals, often through a decentralised marketplace. But not all are created equal.
Some mimic Big Energy’s behaviour with new branding. Others, like tem, are rethinking the system altogether.
The pros of peer-to-peer:
More control and visibility
Chance to earn a fairer price
Supports community-based energy systems
The cons of peer-to-peer:
Still an emerging model
May require smart meters or specific infrastructure
Risk of inconsistent demand without support
Peer-to-peer works best when backed by a partner who helps plug you into a transaction engine with buyers built in at the right time.
What should small renewable energy farms look out for?
Every option comes with trade-offs. But here are some key questions to ask before choosing how to sell:
Do I want price certainty or the flexibility to benefit from market highs?
Can I manage complex contracts, or do I need support?
Am I looking for a short-term revenue stream or a long-term partnership?
Is my output steady and predictable, or more seasonal?
Do I care who buys my energy, or do I just want the best price?
If you’re a solar farm, for example, a fixed-rate export tariff might cover your basics, while a larger wind farm might need the security of a long-term PPA.
Additionally, Biogas producers, with their steady baseload output, are well-placed to benefit from custom agreements with flexible structures. At tem, we’ve seen many biogas plants find success through our model.
Where tem fits in
At tem, we believe small farms deserve a better way to transact.
Our solution, RED™, connects independent generators directly with business buyers through a decentralised, many-to-many model. No brokers, no middlemen, no hiding behind wholesale prices.
We don’t just help you sell your power, we help you unlock its full value. That means:
Giving you visibility to the right buyers
Supporting you with contracts, compliance and setup
Offering price structures tailored to your generation profile
Sharing transparent data so you’re never left in the dark
Whether you’re producing a steady flow of power or generating seasonally, RED™ gives you a route to market that feels fair, flexible, and finally, designed for you.
Final thought: Power is growing in the margins
Big Energy built a system that worked for big players. But the future? It’s decentralised, community-driven, and powered by small energy farms like yours.
If you’re producing renewable energy, you’re already part of the solution. The next step is making sure your power finds its place, and its price, in a system that sees your value.
Let’s help get you there. Talk to us today.