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Agro Energy Fund Solar & Alternative Energy for Every Farmer

The Agro Energy Fund (AEF) is a R1.21 billion blended finance programme from DALRRD and the Land Bank that funds the acquisition of alternative energy assets for farming operations. Launched in August 2023 in response to the load shedding crisis, the AEF helps farmers invest in solar panels, biogas, biomass, and other renewable energy systems to protect food production and reduce energy costs.

Unlike the main Blended Finance Scheme (which targets black producers only), the AEF is open to all South African citizens operating in agriculture -- from smallholder farmers to mega commercial producers. The fund combines a DALRRD grant (non-repayable) with a Land Bank loan, and will remain open until the allocated funds are completely drawn down.

APPLICATIONS NOW OPEN
R1.21 Billion
R500M DALRRD grant + R710M Land Bank loan. Available until funds are fully drawn down. Apply directly through Land Bank.
R500M
Grant allocation
R710M
Loan allocation
All Farmers
No race restriction
1 Per Entity
One application only

Funding by Producer Type

Grant ratios and caps differ by farm scale. Smallholders receive the highest grant proportion.

🌱
Smallholder
Turnover R50K - R1M/year
Grant ratio70%
Loan ratio30%
Grant capR500,000
Max package~R715,000
🚜
Medium-Scale
Turnover R1M - R10M/year
Grant ratio50%
Loan ratio50%
Grant capR1,000,000
Max packageR2,000,000
🏭
Large-Scale / Mega
Turnover R10M+/year
Grant ratio30%
Loan ratio70%
Grant capR1,500,000
Max packageR5,000,000

What the AEF Finances

The fund targets energy-intensive agricultural activities and the infrastructure to power them sustainably.

☀️
Solar Panels & Systems
Photovoltaic systems, battery storage, inverters, and installation for on-farm renewable energy generation.
💧
Irrigation Systems
Energy-efficient pumps and solar-powered irrigation to reduce reliance on grid electricity for water delivery.
❄️
Cold Chain & Storage
On-farm cold rooms, refrigeration units, and pack house cooling powered by alternative energy to protect perishable produce.
🏭
Intensive Production
Energy systems for poultry houses, dairy parlours, piggeries, greenhouses, and other intensive agricultural operations.
🔥
Biogas & Biomass
Biogas digesters, biomass boilers, and waste-to-energy systems for on-farm renewable heat and electricity.

High-Energy Commodities Targeted

The AEF prioritises farming sectors with the highest energy consumption. The commodity list is not exhaustive and will be guided by Land Bank's internal assessment.

🥛 Dairy🐔 Poultry🐖 Pork🍇 Deciduous Fruit🍊 Citrus🥦 Vegetables🌾 Grains🌻 Oilseeds🌿 Flowers/Nurseries🐄 Feedlots

Nedbank Avo Solar Partnership

Land Bank has partnered with Nedbank through Avo Solar to provide access to renewable energy systems for farmers and agribusinesses. This partnership extends the AEF's reach by combining Land Bank blended finance with Nedbank's agribusiness services. Contact your Land Bank relationship manager or email [email protected] for details.

How to Apply

01
Get Energy Assessment
Obtain a feasibility or energy expert report outlining your farm's energy requirements and infrastructure design.
02
Prepare Business Plan
Draft a plan showing the impact of energy funding on operations, with 5-year cash flow projections.
03
Register on Land Bank
Register on the Land Bank e-Services portal at landbank.co.za and log an AEF enquiry.
04
Work With Your RM
Your dedicated Land Bank relationship manager will guide you through the application and documents.
05
Submit & Await Approval
Submit all documents on time. The application follows Land Bank's lending policies and approval process.

Required Documents

Click to check off as you prepare your application.

Valid South African ID (18+ years)
Proof of land ownership or lease (aligned to loan term)
Business plan with 5-year cash flow projections
Feasibility or energy expert report
12-month electricity/energy consumption history
Audited financial statements or management accounts
Quotation(s) for energy equipment and installation
Proof of agricultural business operation

One Application Per Entity. No Debt Settlements.

Only one application per entity or applicant will be considered. The AEF cannot be used for debt takeovers, debt settlements, or refinancing of existing facilities. The fund is strictly for acquiring new alternative energy assets. Ensure all supporting documents are submitted on time -- incomplete paperwork will delay the process.

Common Questions

No. Unlike the main Blended Finance Scheme, the Agro Energy Fund is open to all South African citizens operating in agriculture, regardless of race. It supports smallholder, medium-scale, large-scale, and mega commercial producers. The goal is sector-wide energy resilience.
The fund remains open until all allocated funds are completely drawn down. There is no fixed closing date. However, applications are processed on a first-come-first-served basis, so early application is recommended. Once the R500M grant and R710M loan allocations are exhausted, the fund closes.
The AEF is specifically for acquiring new alternative energy assets. Existing equipment cannot be refinanced or used as part of the application. Co-funding by other development finance institutions, equity participants, or private sector grants for the same project is allowed if it forms part of the total project proposed.
Yes. A feasibility or energy expert report is mandatory. It must outline your farm's energy requirements, significant energy uses, and the proposed infrastructure design. For existing operations, you also need to provide 12 months of electricity/energy consumption history (municipality bill or equivalent). New operations need to demonstrate projected energy requirements.
Loans are priced at market-related rates per Land Bank's lending policies. The grant portion significantly reduces your effective borrowing cost. For smallholders receiving 70% grant and 30% loan, the majority of the funding is non-repayable. Land Bank also offers its Green Finance product alongside the AEF.
No. Part-time producers are excluded, even if they have a full-time farm manager in place or intend to appoint one. The applicant must be operating an agricultural business at the primary or secondary level and must demonstrate the capacity to utilise the energy requirements applied for.

Apply & Resources

Application portal, brochures, and energy fund information.

Land Bank AEF Portal

Register, enquire, and apply

AEF Brochure (PDF)

Official fund brochure via AFASA

DALRRD AEF Page

Department of Agriculture

Blended Finance Scheme

Companion programme on grantZA

Step-by-Step Guide (Food For Mzansi)

Farmer-friendly walkthrough

Nedbank Avo Solar Partnership

Renewable energy for agriculture

grantZA is an independent informational guide and is not affiliated with DALRRD, Land Bank, or Nedbank. Apply directly through the Land Bank at landbank.co.za.