Agro Energy Fund (AEF) 2026 - Solar & Alternative Energy Grants for South African Farmers

South Africa · Solar & Alternative Energy Grants

Agro Energy Fund
2026

Solar & Alternative Energy Grants for Farmers

2026 Applications Open

Solar Power Systems

9 Provinces Covered

Grant Funding Type

Renewable Energy | Farmer Support 2026

✅ Apply for Agro Energy Fund Check Eligibility →

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Agro Energy Fund (AEF)

Agro Energy Fund (AEF) is a R1.21 billion blended finance programme in South Africa. The Department of Agriculture, Land Reform and Rural Development (DALRRD) and Land Bank jointly initiated this project in August 2023. This fund was formed to reduce disruptions in agricultural production caused by frequent load shedding. Through the AEF, farmers receive financial assistance to purchase solar panels, biogas plants, biomass systems, and other alternative energy equipment. Farmers of all scales — small, medium, and commercial producers — are eligible to apply for this fund. Its main aim is to reduce dependency on electricity in the agricultural sector through renewable energy sources and ensure food security.

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Fund Size R1.21 Billion Blended Finance Programme

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Managed By DALRRD & Land Bank

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Supports Solar, Biogas, Biomass & Alternative Energy

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Eligible Farmers Small, Medium & Commercial Producers

Funding Breakdown

Total Funding

R1.21 Billion

Grant Allocation

R500 Million

Loan Allocation

R710 Million

Eligible Applicants

All qualifying farmers,
regardless of race

Application Method

Through Land Bank

Limit

One application per person/entity

AEF Grant System: Small Farms Get More Benefits

The lower the size of a farm under the AEF, the higher its benefit from the AEF. Under the AEF, the farmer gets 70% of the cost if the farm earns an annual income of up to R1 million. However, the farmer will only get 30% of the cost as a grant if the farm earns an annual income of above R10 million. This structure of the AEF puts the small-scale farms at low loan risk.

70%

If the farm earns an annual income of up to R1 million.

30%

If the farm earns an annual income of above R10 million.

1. Small-sized Farms

✓Income per year: R50,000 – R1 million
✓Grant: 70% of Project Cost
✓Loan: 30% of Project Cost
✓Maximum Grant: R5,00,000
✓Total project value allowed: R715,000

2. Medium Size Farms

✓Income per year: R1 million – R10 million
✓Grant: 50% Project Cost
✓Loan: 50% of Project Cost
✓Maximum Grant: R1 Million
✓Total project value allowed: R2 Million

3. Big Size Farms

✓Income per year: Over R10 million
✓Grant: 30% of Project Cost
✓Loan: 70% of Project Cost
✓Maximum Grant: R1.5 Million
✓Total project value allowed: R5 Million

Why AEF Give You Funds

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Solar Power System

AEF provides the funds to set up the solar panels, batteries, inverters to generate the farm’s own electricity. This means less reliance on the grid and lower electricity bills.

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Irrigation Setup

AEF funds energy saving water pumps and solar-powered irrigation systems. This means farmers don’t need main grid power for water supply, cutting costs and load-shedding issues.

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Cold Storage

AEF funds the construction of on-farm cold rooms, fridges and packhouse cooling systems. These are powered by alternative energy and help protect perishable items like fruits, vegetables and milk from spoiling.

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Intensive Farm Operations

AEF is involved in the power systems for poultry sheds, dairy farms, piggeries and green houses. It pays for heaters, fans and lighting powered by alternative energy in high electricity using farm activities.

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Bio Gas & Bio Mass Plants

AEF offers money to set up biogas units, biomass boilers, and waste-to-energy plants. This helps farmers generate power for themselves through waste generated on the farms.

Priority Farming Sectors

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Priority Farming Sectors:- AEF prioritizes farms that consume more energy. The sectors are not limited and would be finalized by the Land Bank through an evaluation process.

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Dairy, Poultry, and Pork

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Cereals and Oilseed

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Deciduous Fruits, Citrus, and Vegetables

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Flowers/Nursery etc.

How to Apply for This Farming Funding

Five Steps to Apply for the AEF Fund:-

Conduct an energy assessment of your farm

Prepare a report on your farm’s energy requirements with the help of an energy expert or consultant. The report should include the current electricity consumption, where electricity is used, and the proposed design for a solar or biogas system. Without this report, also called a feasibility report, you cannot start the application.

Make your detailed business plan

The plan should explain how receiving energy funding will impact the farms profitability. This plan must include a five-year cash cash flow projection or income and expense forecast. The plan should clearly show how the funding will change the farm’s production and operating costs.

Register on the Land Bank website

Go to landbank.co.za and create an account on the e-service portal. After creating an account, submit an enquiry regarding the AEF Fund. This is the first official step of the online application process.

Work with the Relationship Manager

After the register, the Land Bank will assign you a dedicated relationship manager (RM). The RM will guide you in filling out the forms and tell you which documents are required. If there are any mistakes in your documents or if you don’t understand any part of the application process, the RM will help you.

Submit all the required documents and wait

Submit all the required documents on time according to the RM’s instructions. The Land Bank will verify your application according to its loan approval procedures. Once they have reviewed everything and found it to be in order, they will approve your loan.

Documents You’ll Need to Apply

Tick these off one by one as you get your application ready:

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A valid South African ID, and you must be 18 or older

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Proof that you own or lease the land, matching the length of your loan

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A business plan that includes 5-year cash flow projections

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A feasibility study or a report from an energy expert

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Your electricity or energy usage records from the past 12 months

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Audited financial statements, or management accounts if audits aren’t available

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Quotes for the energy equipment and its installation

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Proof that you’re running an agricultural business

Points to Remember

🤝 Nedbank Avo Solar Collaboration

✓ Land Bank and Nedbank are collaborating with Avo Solar.
✓ The primary objective is to make sure that the farmers get access to the solar and other renewable energy systems effortlessly.
✓ The funds would be provided by Land Bank, whereas Nedbank and Avo Solar would assist in offering technical support and installation of the system.
✓ For more details on how to proceed further, please contact your Relationship Manager (RM) at Land Bank or write to agriculture@nedbank.co.za.

📋 Guidelines for Applications

✓ Application from a farmer or an organization can be made once only. In case of repeated application, your application will be discarded.
✓ This financing can not be used for repaying existing loans, paying off old debts and refinancing existing loans.
✓ AEF fund can be used for purchasing only solar panels, batteries, biogas plants, and renewable energy systems.
✓ All the documents should be provided in one attempt. Failure to do so will lead to the postponement of the application.

Frequently Asked Questions (FAQs)

What exactly is the Agro Energy Fund?

It’s a R1.21 billion blended finance scheme, jointly run by DALRRD and the Land Bank, that helps farmers buy solar panels, batteries, and other alternative energy equipment to cut their dependence on the grid and cope with load shedding.

Who qualifies to apply for AEF funding?

Any South African citizen aged 18 or older with a valid ID, or a registered business entity, who runs an agricultural operation (primary or secondary level) can show they actually need the energy capacity they’re applying for. Part-time farmers don’t qualify, even if a manager runs the farm full-time.

How much money can a farmer get through the AEF?

The funding will consist of grants and loans, wherein the smallholder producers usually receive about 70% grant and 30% loan, implying that the majority of funding received by them is non-repayable. The amounts vary based on the size of production.

What documents do I need to apply for the Agro Energy Fund?

A valid ID, proof of land ownership or lease, a 5-year business plan, a feasibility or energy expert report, 12 months of electricity consumption history, financial statements, equipment quotes, and proof of your agricultural operation.

Is there a deadline to apply for AEF, or is it open year-round?

There’s no fixed closing date — the fund stays open until the full R1.21 billion (R500 million in grants, R710 million in loans) is allocated. Since it runs on a first-come-first-served basis, applying early improves your chances.