Battery storage: A powerful opportunity for landowners

As the UK accelerates its transition to net zero, battery storage is emerging as a vital piece of the energy puzzle and a compelling opportunity for landowners.

With demand for suitable sites consistently rising, landowners are increasingly approached to host battery storage infrastructure, often alongside solar parks. But what does this mean in practice?

Eve Laws, Partner in Thrings’ Agriculture team, reviews the commercial and legal implications for landowners.

A case in point: Nationally Significant Infrastructure Project

Thrings recently advised a landowner involved in a large-scale renewable energy development, which included both solar and battery storage elements. Due to the size of the project, the developer is pursuing a Development Consent Order (DCO), a process used for nationally significant infrastructure.

The transaction involved long-term land arrangements and complex lease structures, highlighting the commercial potential of battery storage and the legal intricacies landowners must navigate.

Why battery storage is different and valuable

Unlike solar farms, battery storage:

• Requires less land, making it suitable for smaller plots
• Supports grid stability, storing excess renewable energy and releasing it when needed
• Offers multiple revenue streams, including grid services and energy arbitrage

For landowners, this means diversification with potentially higher returns per acre than traditional renewables.

Key considerations for landowners

Lease Terms:

• Battery storage leases often span 25 to 40 years
• You should ensure rent is clearly defined and indexed
• Termination rights should be excluded if the project fails to secure grid connection or financing
• The rights granted to the developer over adjoining land should not go beyond what the developer reasonably requires for their purposes
• You should confirm the developer is responsible for site maintenance and decommissioning
• The developer should provide you with sufficient security until the site is decommissioned and reinstated

Legal Protection:

• In multi-landowner projects, developers often seek uniform agreements while the various landowners’ land, priorities and future plans may differ significantly
• Thrings worked to balance consistency with bespoke protections, manage expectations around negotiation timelines, and ensure clarity on obligations and liabilities

Practical Tips for Landowners

• Seek expert advice early from solicitors, accountants and surveyors experienced in energy projects.
• Understand the full lifecycle from planning to decommissioning
• In an option agreement, negotiate wisely especially around payments from the developer, grid connection and planning timelines, insurance and indemnities
• In a lease, consider the rent including a turnover rent, rights granted to the developer, decommissioning , security and indemnities

As the UK races toward its net zero goals, battery storage is no longer a niche opportunity - it’s a strategic asset. For landowners, hosting battery infrastructure offers the chance to shape the future of energy. With the right legal and commercial guidance, landowners can unlock long-term value, contribute to national sustainability efforts, and position themselves at the forefront of the UK’s green energy evolution.        

Thrings’ Clean Energy lawyers have extensive experience in navigating complex local and national planning policy legislation and has successfully supported the delivery of a range of commercial and residential projects. To find out more and for advice on your development proposals, please get in touch.