When looking at large scale renewable development, whether that be solar, wind or battery, the sites are primarily developed under long lease agreements. We have many clients currently exploring both leasehold and self-investment opportunities including solar, battery storage, electric car charging stations and wind.

Grid connection is the key determining factor to the go-ahead of any scheme. Unless all the electricity produced will be used in-house, then depending on the type of scheme, there needs to be capacity in the network to export or import and export. We work closely with a third-party grid connection specialist to determine whether or not there are connection opportunities.

With regards to solar schemes on a rental basis, there is demand in the marketplace for sites of 10 megawatts (MW) or larger. At 10MW this would take up about 40 acres. The market rent is around £1,000 per acre per annum for sites such as this, with some deals in excess of this in certain circumstances.

It is usual for a site to go into an option agreement with a developer. This agreement gives a developer exclusive rights to apply for planning permission and a connection (if a connection isn’t already obtained), for a period of years. If the developer obtains the permission, then a pre-agreed lease will commence. Some of these leases are for as long as 40 years. This can be a great additional source of income and will also significantly increase the value of the land the project sits on – advantageous if lending opportunities are being explored.

Battery storage works well combined with a solar scheme and also as a standalone opportunity. The batteries are usually housed in containers and take up a relatively small site in comparison to solar, usually between one and four acres. On a rental model, the rent is calculated on a per MW basis rather than a per acre basis. The current market is around £1,800 to £2,000 per MW.

An important consideration with the increase in value of property from schemes is the impact on succession planning and tax liabilities We offer a holistic approach to energy and sustainability projects and can also offer advice in this regard.

Please contact us to discuss how we can assist with making energy and sustainability a part of your property.

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