Doing it for the kids
Member
75k now seems a lot of money, in 25 years it'll seem like a trivial figure... if you need to borrow 75k and can't get it elsewhere... do it, if you dont then why?
Do you realise all figures follow inflation!?
75k now seems a lot of money, in 25 years it'll seem like a trivial figure... if you need to borrow 75k and can't get it elsewhere... do it, if you dont then why?
Thanks for the replys. I have signed a deal with the developer. The rent makes a lot more money than farming
How are people covering this risk?Exactly a battery farm going bust after a fire could leave you with a clean up bill in the millionss!
I guess the only real threat is fire, all the containers here a fire extinguisher system inbuilt, they also have heaters and air conditioning, batteries like to be kept at 20+C I seem to remember the chap saying. Most lithiums are encased in a tough alloy container and the pouch cells tend to blow up like a balloon which I'm sure would flag up a warning in the management system.I was thinking if there was an environmental problem with them.
I guess the only real threat is fire, all the containers here a fire extinguisher system inbuilt, they also have heaters and air conditioning, batteries like to be kept at 20+C I seem to remember the chap saying. Most lithiums are encased in a tough alloy container and the pouch cells tend to blow up like a balloon which I'm sure would flag up a warning in the management system.
I am not aware of any storage units going up in smoke, guess there must be some by now though. I suspect the fire brigade would let them just burn out and try and limit any spread.
Who would clear that up, I would assume the Co involved via its insurance and if it went pop then I'm sure there would be other companies trying to buy it. Its a huge asset with a high potential earning ability.
Also they should have a plan in place for the reclamation of the site at the end of it term, a pot of funds, we have one here and its reviewed every 5 years, I seem to remember this is held separate to the Company so I would assume even if they went bust the funds are still in place for clear up. This is what I was led to believe with ours.
A bare minimum in the fund early doors as the plant value would far exceed the clear up value but as time progresses the fund increases every review period
Interesting comments. We've had a meeting with a firm regarding battery storage today. They're looking at 2 acres for 40 yrs. The rental they are proposing is eye watering. Prior to reading your comments, I had the thought that if I was left with a brown field site at the end of 40 yrs, my kids (cause I'd be long gone) would have a nice site for building houses, but that may not be possible.
Maybe a difficult 2 acre field stuck in some enviro scheme doldrum?And what will it offer them if you don’t do it!?
No LOA signed yet. The developers said that the DNO needs to calculate the connection cost first which costs several thousands of pounds (the developer is paying this thankfully)
They ask for an LOA to check the land with a Distribution Network Officer?Its not a LOA (letter of Authority) you need to sign. They will want and you want an Option Agreement to enter into a formal lease should planning permission be granted. You have nothing until that is signed. Take legal advice the developer should pay for it
How are people covering this risk?
1)developers might start paying into a fund after 10 years for decommissioning the site but this would not be enough to cover the environmental and cleanup costs if something went wrong, or if there was a problem before the fund had been started
2) the developers will have insurance, but how does the land owner know that the insurance is adequate or that the developer is up to date with paying the premium. If a developer went bust would the insurance still be valid?
would like to know how other people have work this problem out.
Yes we are interested in how this has been resolved for other Battery Energy Storage Sites too. What do they promise you at the end?
Interested in hearing more @ashmore we are considering proceeding with a meeting. Why would it not be suitable? Because of potential site being left with equipment in situ?Interesting comments. We've had a meeting with a firm regarding battery storage today. They're looking at 2 acres for 40 yrs. The rental they are proposing is eye watering. Prior to reading your comments, I had the thought that if I was left with a brown field site at the end of 40 yrs, my kids (cause I'd be long gone) would have a nice site for building houses, but that may not be possible.
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.
What sort of support did you get in place? I'm thinking land agent and solicitor as a minimum?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.