Department of Agriculture, Land Reform and Rural Development
Agro-Energy Fund
National R1.21 billion pool Solar & alternative energy On-farm use
At a glance
Pool size
R1.21 billion
Large-scale grant cap
R1.5 million
Medium-scale grant cap
R1 million
Smallholder grant cap
R500,000
Instrument
Grant + concessional loan
Eligible technology
Solar, biogas, wind, hybrid
Delivery
Land Bank primary
Own contribution
Bank equity ratio
Who qualifies
- Registered farming operation (individual, company, or cooperative)
- Investing in solar, biogas, wind, or hybrid systems that power farm operations
- Meets Land Bank credit criteria for the loan portion
- Provides a technical energy audit and system specification
- Business plan with expected energy savings and repayment ability
Who does not qualify
- Non-farming operations
- Off-farm solar arrays disconnected from productive activity
- Applications without an energy audit or technical specification
- Speculative or resale-focused solar ventures
Documents you bring
- Business plan including energy audit and technical spec
- Certified copies of owner / director IDs
- CIPC or cooperative registration
- Financial statements (3 years or opening balance)
- Proof of land tenure
- Quotations from at least 2 accredited energy installers
- SARS tax clearance
Grant-to-loan ratios scale down as project size scales up. Smallholder projects can get a higher grant share than large commercial operations.
How to apply
- Commission an energy audit for your farm from an accredited installer.
- Get 2 to 3 quotations for the recommended system.
- Consult a Land Bank branch to structure the blend and select the correct tier.
- Complete the Agro-Energy Fund application with the technical spec and business plan attached.
- Land Bank + DALRRD assess and issue a facility letter.
- Sign, meet conditions precedent, and disburse in tranches as the installation progresses.
The fund is administered jointly by DALRRD and Land Bank. Applications through commercial banks are being extended in phases, check with your bank whether Agro-Energy is available.
Grant share is bigger for smallholders
The blend inverts as project size grows: a smallholder project may see a 50-60% grant share against 40-50% loan, while a large commercial installation might land at 25% grant and 75% loan. Right-sizing your project by kW (rather than by cost) can shift you into a more grant-heavy tier and materially change repayment.