When the wind doesn't blow or the sun disappears behind clouds, renewable energy supply can drop off. But at other times the weather delivers an ample supply of input - so much so, that it makes sense to capture that energy in batteries. Landowners have a great opportunity to earn income by housing such facilities at their property.
What are battery energy storage systems?
Battery storage energy systems enable excess energy generated from renewable sources, such as solar and wind, to be stored in rechargeable batteries and released into the grid when demand for energy outstrips supply.
Growth of battery storage?
The battery storage sector has shown signs of significant growth. Recently, the UK’s largest battery site in Tilbury, capable of powering 680,000 homes, was connected to the grid. Currently, it is estimated that the UK currently has 6 GW of operational capacity from battery sites, but between April and June 2025, 100 planning applications for battery sites were submitted with approximately 8.4 GW of capacity. As this is more than double the number of planning applications submitted in the same quarter the previous year, there is clearly appetite amongst developers for battery storage projects.
It is likely that this trend is set to continue. The Government estimates in its Clean Power Action Plan 2030 that Britain will need between 23 to 27 GW of capacity from battery storage to reach its goal of obtaining a “Clean Power” electricity system by 2030. Therefore, further development of battery sites will be required to meet the Government’s target. In addition, the falling cost of batteries and advancements in technology has created favourable market conditions for developers of battery sites.
Opportunities for landowners
By leasing land for battery storage, landowners may be able to secure a long-term, index-linked rent. Battery storage projects are also capable of being delivered on a smaller scale than other renewable energy projects and can be as small as two acres.
Developers tend to favour sites which are:
- relatively flat;
- situated near existing substations;
- away from residential areas;
- not in national parks or environmentally sensitive areas; and
- on lower-quality agricultural land.
At the outset of a battery storage project, the landowner and developer typically agree heads of terms outlining the basis of the agreement reached between the parties and serve as the starting point for the negotiation of subsequent legal agreements, such as:
- exclusivity agreements: placing restrictions on the landowner's ability to explore opportunities with other developers;
- option agreements: allowing developers a set period of time to carry out feasibility surveys and seek the necessary planning consents and grid connection agreements before committing to the lease of the battery site; and
- leases: setting out the legal basis on which the developer will occupy the battery storage site.
Landowners should pay particular attention to the extent of rights to be granted to developers, access arrangements for the site, any break clauses, the impact of the agreements on biodiversity obligations as well as reinstatement provisions which come into effect at the end of the term.
It is usual for the professional costs associated with the negotiation of the legal agreements to be covered by developers and will not normally come at a cost to landowners.
Trowers & Hamlins has a dedicated team of agriculture and renewable energy specialists who can advise at all stages of a battery site project and farm diversification. For further information, please contact Tom Craig or Alex McNie.
