Battery Storage worth it? £75,000 rent, 4 acres

[famerjack345]

I've been offered £75,000 by a firm who want to lease 4 acres of my land to build a battery storage farm.

Does anyone have experience in what the rents are in the battery storage market? £75,000 for 4 acres is a lot of money!

Does anyone have a battery storage farm and what is it like?

 

[famerjack345]

To clarify it is £75,000 rent a year for 25 years

 

[Pennine Ploughing]

Will it be classified as contaminated land when handed back,

 

[famerjack345]

Will it be classified as contaminated land when handed back,

Why would it be contaminated, the batteries are sealed so as long as they dont leak it wont contaminate anything

 

[famerjack345]

Will it be classified as contaminated land when handed back,

All my research so far says that the land will be completely reinstated to its previous state once the batteries are removed. This is binded by the lease.

 

[davidroberts30]

All my research so far says that the land will be completely reinstated to its previous state once the batteries are removed. This is binded by the lease.

Get a bond up front as all these limited companies will sell and trade the storage then disappear

 

[Limcrazy]

Sounds like bs to me
If they stayed 25yrs it would be costing nearly £2 mil.

 

[teslacoils]

75k a year, for 25 years, for 4ac?

At six percent interest, that's essentially a present value of just shy of a million pounds. See if they'll pay you 600k cash to buy the land, and see how long they hang around for.

 

[curlietailz]

Get a land agent
They will get a good deal
And the battery people will pay their fee

 

[Chris F]

The battery farms are very location dependent, you need to be very close to the network to make it pay. This is luck of the draw and very few plots of land qualify.

4ac would be a lot of storage capacity. I went to talk on this a couple of years ago and it was all self contained and container based.

 

[benny6910]

I would think it’s £75000 in total for 30 years. If it’s per year than the offer I’ve been made is far too low.

 

[___\0/___]

One in for planning locally

 

[MrNoo]

Yes, sounds about right, how many MW storage? Some pay silly money for storage. Been offered £1.5k/Mw here for another project.

 

[steveR]

Yes, sounds about right, how many MW storage? Some pay silly money for storage. Been offered £1.5k/Mw here for another project.

Been offered ITR £1K/MW, but hearing of double that figure in the right place, with minimal infrastructure costs.

 

[MrNoo]

Been offered ITR £1K/MW, but hearing of double that figure in the right place, with minimal infrastructure costs.

This is just storage on a solar farm, so on top of rent payable but only if they can import as well as export, am yet to see the size etc as a fresh project in the pipeline but I thought 1.5k was not far off. See what develops.

 

[steveR]

As @curlietailz says, get a good Agent on the case ASAP. You need a specialist agent in my view, although some have been happy with a more low level of advice. Batteries need the decommisioning arrangements (and Bond) to be be watertight.

To @famerjack345 is the lease 25yr, + 5, +5 etc etc? These seem the norm, but no one really knows how long battery storage will be needed!

 

[MrNoo]

Leases seem to be longer, our existing farm is 25 + 15 in 3 tranches. Other one they want 30 + 15 in 3 x 5yr tranches.
I will be in a wooden box by then!

 

[michael N123]

Will it be classified as contaminated land when handed back,

For 1.8 million would you care

 

[steveR]

Leases seem to be longer, our existing farm is 25 + 15 in 3 tranches. Other one they want 30 + 15 in 3 x 5yr tranches.
I will be in a wooden box by then!

Wow! 45 years.....!!

 

[steveR]

This is just storage on a solar farm, so on top of rent payable but only if they can import as well as export, am yet to see the size etc as a fresh project in the pipeline but I thought 1.5k was not far off. See what develops.