The UK has made a commitment to be Net Zero in emissions by 2050. As a result, significant growth is expected in solar and wind power generation sector, leading to requirement for Utility Scale Battery Storage projects to manage this intermittent generation, reduce volatility and stabilise the grid.
We have partnered with a leading battery project developer to offer attractive long term rentals for land to be utilised for battery farms. We are looking for land owners across the UK with a minimum of 1 acre available for rent.
If you have unused land between 1-15 acres, you can earn a steady stream of additional income throughout the lifespan of the battery project (typically 30 years). The long term lease is also RPI linked meaning the rental income is inflation protected.
Rental Income Offered
Preliminary rental income offered shown below. This is subject to change once a feasibility test is undertaken. After a preliminary assessment and budgetary estimate we will be able to give an accurate rental income. We have seen the rental income be much higher on average than these preliminary prices below.
The 4 Step Process
1) Preliminary assessment and budgetary estimate – 4 weeks.
2) Application for Grid connection: If the budgetary estimate is found to be viable we will enter into exclusivity agreement with the client for a period of 12 months and apply for the grid connection. The response for firm grid offer can take 3-6 months. Simultaneously we will also start the pre-planning process for the site.
3) Planning Application: Once we get a satisfactory grid offer and pre-planning is positive, we will enter into ‘Option to lease’ agreement with the client and start the planning application. The planning application can take 4-8 months.
4) Project Construction and Commercial Operation: Once planning consent is received, lease agreement will be executed and the project is ready to build. The commercial operation date depends upon the grid connection date given by the DNO. This is usually 12-24 months from the date grid offer is received.
To sum up, it can take around 12 months for the project to receive all required consents and up to 2.5 years for commercial operation. Can be earlier depending upon the grid connection date.
Frequently Asked Questions
Legal costs? Who covers?
Developer will cover the legal costs for the landlord up to £1500. This is usually enough as landlord only requires to enter into lease agreement. The developer will bear all the legal costs required for planning and developing the project.
How long until first payment?
Once the ‘Option to lease’ is signed, nominal payments start. If the project fails in planning, option to lease agreement is cancelled and exclusivity for the projects ends. Actual rental payments will start once the lease agreement is signed and developer takes possession of the land. This is usually within 2 months of receiving the planning consent.
What happens if dip in usage?
The landlord is on a fixed rent and the rental payments are not linked to usage.
Pricing for larger than 10/15 acre lots?
Pricing is dependent on capacity – MW allocation from the grid and the rent is around £1100/MW per year. In theory we can go up to 400MW in England but capacities larger than 200MW are very rarely available. For 400MW maximum land requirement is 20 acres.
Will the land and local environment effected?
Landowners do not need to worry about the future condition of their land. A battery project is self-contained and has minimal impact on the local environment as there are no effluents.
Battery projects can even be set up in Green Belt areas where any other urban development is currently not permitted. Landowners also do not need to worry about environmental impact as there is no air pollution causing health issues for those living nearby and no water is required meaning there is no depletion of local water sources.
Will the battery farm look like?
All battery farms look slightly different and we try to plant trees and bushes to cover them up as much as possible to keep the nature and environment thriving in the local area. For a rough reference a small battery farm looks like the picture below.
Are there any additional fees?
A one time set up fee of £5,000 Per Acre after completion of contracts and completion of set up will be incurred. Alongside a negotiable % of the rental income as a brokerage fee.
If you have unused land, get in touch with us and we along with our client representative will take care of all the requirements to enable you to generate steady long term income per acre while boosting the local community and helping to cut emissions.
For a preliminary assessment and budgetary estimate please have an image of your lands title deeds and aerial view photos or diagrams, the plot of land coordinates and amount of acres you have available.
For more information please contact us ASAP