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Battery Storage Sites - An opportunity for Landowners?

Battery Storage Sites -  An opportunity for Landowners?

Over the last 18 months, we have been contacted by more and more landowners who have been approached by developers wishing to build battery storage sites on their land. So, what is a battery storage site and might your land be suitable?

What are battery storage sites?

As the UK Government continues to transition to a green electricity grid, there will be an increased need for battery storage sites. Renewables such as solar and wind power produce energy intermittently, meaning that energy can be produced when not needed. This generated power therefore needs battery storage technologies so that it can be stored and then released to customers when the power is needed.

Battery storage sites are effectively energy storage sites that have a group of batteries to store power. They are connected to the grid and have control systems which decide when energy should be kept and when to release it to the grid.

Is my land suitable?

There are various requirements that sites need to satisfy in order to be suitable for use as a battery storage site. These include factors such as proximity to a substation or other grid connection, grid capacity in the area, access and planning policy.

Sites can vary in size from 0.25 to 4 acres and can either be standalone or alongside renewable energies such as solar panels or wind turbines.

What is involved?

A developer will often seek to enter into an exclusivity agreement in the first instance. We would recommend not signing an exclusivity agreement until you have instructed an agent, as this prevents you from exploring alternative options.

Heads of terms may then be negotiated for an option and lease agreement. The option agreement will allow the developer to try and obtain planning permission for a scheme on the land which, if granted, will then trigger commencement of the lease. Leases are generally for 25+ years and landowners should expect to receive an option premium for the option agreement and an annual rent under the lease, which is usually based on the size of the development.

Once the lease commences, the developer will then start building the site along with any ancillary infrastructure.

How can Stags help?

At face value, heads of terms can look attractive but these agreements are complicated and are usually long term and so we would recommend an agent is instructed to act on your behalf as soon as possible. We are then able to negotiate the heads of terms on your behalf, in which we would request that the developer provide a contribution towards agent and legal fees.

If you have been approached by a developer and would like us to act on your behalf or would consider letting land for battery storage or other renewable energy technologies, please contact Matthew Wilcox on 01884 235701 or m.wilcox@stags.co.uk.