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

steveR

Member
Mixed Farmer
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?
have they asked you to sign the LoA to apply to the DNO, or do they have a connection already?
 

pappuller

Member
Livestock Farmer
Location
M6 Hard shoulder
We are close to signing an option lease agreement on 4 acres for 48mw battery storage facility, dno connection agreed in principle but don't underestimate the time lag in getting the documents agreed, we are 2 years in and only now getting close to signing. £75k for 4 acres annual rent is a good and fair offer in my opinion but ensure you have good legal and professional advice. You only live once.
 

Exfarmer

Member
Location
Bury St Edmunds
I would be very wary and take some very serious advice. Whatever anyone says, if it looks too good to be true it probably is.
The dangers of a fire are large and the resulting pollution is huge. If the worsthappened they would certainly go bust , just like Grenfell and some other poor sod picks up the pieces.
Do not let that poor sod be you.
 

puppet

Member
Livestock Farmer
Location
sw scotland
why wouldn’t they just buy a plot of land rather than pay rediculous amount of rent ?
They won't have any capital or assets to borrow against. That is what entrepreneurs do. There was a similar thread about PFI deals where developers will be running the parts of the project in parallel just waiting until they get the contract then the funding will flow. Then they can go back to the lenders and negotiate a better interest rate.
I think we are just realising that nobody has any money, just a giant global Ponzi scheme.
 

Exfarmer

Member
Location
Bury St Edmunds
They won't have any capital or assets to borrow against. That is what entrepreneurs do. There was a similar thread about PFI deals where developers will be running the parts of the project in parallel just waiting until they get the contract then the funding will flow. Then they can go back to the lenders and negotiate a better interest rate.
I think we are just realising that nobody has any money, just a giant global Ponzi scheme.
surely the cost of 4 acres of land is marginal at £100K compared to the cost of the batteries
 

serf

Member
Location
warwickshire
why wouldn’t they just buy a plot of land rather than pay rediculous amount of rent ?
That was my first thought but this land is probably in a strategic place for this storage to work and no land available to just buy off the shelf where they need it to be , and the land they want to lease is not on the market.

Just a thought got no knowledge on the subject 🙂
 
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puppet

Member
Livestock Farmer
Location
sw scotland
surely the cost of 4 acres of land is marginal at £100K compared to the cost of the batteries
The rental over 25 years is £1.8m. Index linked will be getting closer to £2.5m. Surely you wouldn't sell for £100k. That is why you need a land agent.
I know someone who was offered £100 per annum as a wayleave or the agent negotiated £5000 as a lump sum. OK, slightly different legal bits but a far better offer.
 

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quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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