In conditions of the country's economy decline, the agrarian sector is the driving force behind the processes of economic stabilization. 17% of the country's GDP is created in agriculture, and agricultural products are exported at the amount of 17.9 billion dollars, representing 33.6% of all overseas incomes of the country, while the level of state support is rather low and amounts to only 1% of GDP.The increase in tariffs for the main energy sources leads to a constant increase in material costs for crop and livestock production. The average annual growth of material expenses for the 2014-2016 period constituted 7.8% for fuel and lubricant materials, 15.2%- for electricity, 6.4% -for fuel and energy. Thus, according to the actual data farmers should have profitability not lower than 25.4%, however they received a loss of UAH 1.2 bn.Under such conditions, it is necessary to mobilize own finances to form a raw material base and to introduce the use of alternative energy sources in agriculture.215904.6 thousand heads of cattle and poultry are concentrated in agriculture, only 54% of which - in agrarian enterprises. According to our estimates, the theoretical potential of biogas output got from animal waste was 1.75 billion m3 in 2016, while the potential level needed for energy purposes equals to 0.76 million tons. Moreover, according to experts, the possible energy potential of biogas is expected to increase to 2.38 million tons in 2050.According to the research, it has been established that the use of biogas has the following advantages over traditional fuels, namely: the use of biogas is attractive either because of lower cost or due to economic incentives; if farmers can not get permission (license) for the supply of electricity obtained from biogas to the general power grid according to the "green tariff", they use this energy for their own economic purposes; the construction of new biogas and bio-methane plants receives investment grants from 20 to 30% of the total volume of investments; the chemical composition of biogas is similar to that of natural gas, which makes it possible to sell it to the gas distribution network, while enriching it by bio-methane and using as gaseous fuel; to use waste received as a result of biogas obtaining as enriched organic fertilizers for the needs of plant growing; the use of livestock waste for the production of biogas reduces the burden on the environment and the cost of utilizing such waste.