Home › Leasing land for battery storage

Leasing land for battery storage: a guide for landowners

Battery storage developers across Great Britain are looking for small, well-placed plots of land. This guide sets out, in general terms, what they look for, how the agreements usually work and what to consider before signing anything. It is general information, not legal, tax or valuation advice.

What a battery storage site is

A battery energy storage system (BESS) takes electricity from the grid when it is plentiful and returns it when demand is high, helping the network operators keep supply and demand in balance. On the ground it is a fenced compound of container-sized battery units, with inverters, transformers and switchgear where it connects to the local electricity network. Once built, a site is unmanned and monitored remotely, with occasional visits for maintenance.

What developers look for in a site

A substation close by, with capacity

The grid connection matters more than anything else. The developer pays for the cable from the site to the substation, and the cost rises with distance, so land close to a substation with spare capacity is the most sought after. Our own check treats land within about a kilometre of a suitable substation as the strongest prospect, and land within three kilometres as worth a closer look.

Distance is only half of it. A substation next door may have no room for new connections, or be held back by constraints further up the network. The network operators publish capacity and connection-queue information, which we use, but only a formal connection application to the network operator gives a definitive answer.

Enough land, in the right shape

A typical compound is around half an acre to two acres. Larger schemes connecting at higher voltages need more. Room is also needed for access, drainage and landscaping, so the area leased is often a little larger than the compound itself. Fairly level, well-drained ground is preferred, and previously developed land such as yards and brownfield sites can suit well.

Access for construction

Building a site needs access for heavy goods vehicles, including delivery of large transformers, so a workable route from a public road is important. Once the site is running, traffic is light.

A reasonable planning position

Developers avoid, or approach with caution, land in high flood risk zones, Sites of Special Scientific Interest and other protected sites. Land in the green belt or a National Landscape (formerly an Area of Outstanding Natural Beauty) faces a harder planning test, though it is not automatically ruled out. Distance from neighbouring homes matters too, because of noise from cooling equipment and the need for screening.

How the agreements usually work

Heads of terms. The main commercial points are normally agreed first in heads of terms. These are not usually legally binding, but they shape everything that follows, so they deserve proper attention.

Option agreement. The developer then normally takes an option over the land. This gives it the exclusive right, for a set period, to call for a lease once it has secured planning permission and a grid connection. The landowner is usually paid an option fee during this period. Because consents take time, option periods of several years are not unusual.

Lease. If the option is exercised, a long lease is granted – often 25 to 40 years – with an annual rent that is commonly linked to inflation. The lease will usually include rights for the cable route and access, and an obligation on the tenant to remove the equipment and reinstate the land at the end of the term.

Professional fees. It is common for the developer to meet the landowner's reasonable legal and surveyor's fees for the option and lease, but this should be agreed at the outset rather than assumed.

What rent might the land earn?

We do not publish rent figures, because there is no standard rate. Rent for battery storage land may be expressed per acre or per megawatt of capacity, and it depends chiefly on the grid connection the site can secure, the size of scheme it can support, the planning position and access. A well-placed site will usually earn considerably more than agricultural or low-value storage use, but a site with a poor grid position may attract no interest at all. If your land looks suitable, the full site report sets out an indicative, evidence-based range.

Points to consider before signing

• The option period. How long it lasts, whether it can be extended, and what happens if the developer cannot secure a connection or planning permission.
• Rent and payments. How the rent is calculated and reviewed, and what is paid during the option period and during construction.
• Reinstatement. The obligation to remove the equipment and restore the land at the end, and what security is offered to make sure that happens.
• The rest of your land. Where the cable route and access will run, and how the scheme will affect farming or business use of the land around it.
• Tenants and lenders. If the land is let – under a farm business tenancy, an agricultural tenancy or a commercial lease – the tenant's agreement, and possibly a surrender of part of the holding, will be needed. If the land is mortgaged, the lender's consent will usually be required.
• Tax. Land let for battery storage is no longer in agricultural use, which can affect inheritance tax reliefs such as agricultural property relief, and capital gains tax planning. Take advice from your accountant or tax adviser early.
• Comparing approaches. If more than one developer approaches you, compare the whole package – option fee, rent, length of option, fees and reinstatement – not the headline rent alone.

Whatever route you take, we always recommend independent legal and professional advice before you sign.

How long it takes

Securing a grid connection and planning permission is the slow part and can take several years. Connection timescales across Great Britain have been long while the connections process is being reformed. Once consents are in place, construction usually takes months rather than years.

Solar and battery schemes

Some developers pair batteries with solar panels, or add storage to an existing solar farm. A solar scheme needs far more land – many acres rather than one or two – so the considerations are different. Our check is designed for standalone battery sites. If you have a larger area near a substation, say so in the notes when you check your land.

How our free check works

You give us a postcode, an Ordnance Survey grid reference or a pin on the map, with the approximate size of the land, how you hold it and whether there is vehicle access from a public road. We then look at:

• the distance to the nearest suitable substations and the spare capacity their network operator publishes;
• published constraints further up the network, where the data allows;
• planning designations such as flood zones, green belt, National Landscapes and Sites of Special Scientific Interest – checked automatically for land in England;
• plot size and access.

You see a Green, Amber or Red result straight away. Our substation data currently covers the areas of National Grid Electricity Distribution, UK Power Networks, SP Energy Networks, Northern Powergrid and Electricity North West. Where our data does not reach, the grid position is checked by hand. If the result is Green or Amber, you can order a full site report for that land for £60 including VAT (£50 + VAT). The check is an automated first look using public data. It is not a valuation, planning advice or an offer.

Last reviewed October 2026. Questions? Email hello@landtogrid.co.uk.