Leasing your land for energy storage

We work with landowners to select the best site for a energy system that won’t disrupt any of their current or planned future use. In short, landowner preferences and site viability go hand in hand.

Battery energy storage systems require a much smaller footprint than other surface-based renewable energy projects, from as little as a quarter of an acre to 1-2 acres. Key factors we consider include:

  • Accessibility

    Close to a public access road. The utility, construction crews, and long-term maintenance providers should be able to easily access the site.

  • Topography and Slope

    Ideally, a property should be relatively flat and clear of trees and vegetation. The location of wetlands, streams, or easements can also be a factor.

  • Zoning

    Energy storage projects typically require that the property be in an area zoned for commercial or industrial use.

  • Lease Term

    Lease terms typically last for 20 years or longer. A longer term typically corresponds with a higher lease rate.

  • Tax Incentives

    A federal tax incentive, known as the Investment Tax Credit, is available for solar project owners. Some states or regions are supporting the installation of energy storage through tax or rate incentives that provide project owners a long-term revenue stream for the project. The lease rates we can offer depend on the size and type of the aggregate tax incentive, the size and type of a region's solar incentive program, and the local utility rates.

  • Property Taxes

    If there are higher taxes associated with using the property for solar energy generation, the additional cost will contribute to a higher overall cost and thus negatively impact the lease rate.

  • Interconnection Costs

    Interconnection, the process of connecting the energy storage system into the local electrical grid, is a major cost component of construction. We consider whether three-phase power is present at the property, the distance to the local substation, and whether there are other solar projects in the area. All of these can determine whether costly distribution lines or substation upgrades are needed, and will impact the lease rate we can offer.

  • Complications

    Are there any other constraints that add to the level of difficulty in completing a project? Is it in an area that is zoned properly? Are there endangered species? Other examples might include system quality, troubleshooting, commissioning, end of warranty concerns, etc.

Get a personalized lease rate for your property.

Let's connect to explore whether long-term lease income from an energy project is feasible for your property. Please provide the following details about your property and one of our professionals will be in touch soon.