Leasing land for solar panels and energy storage is a very interesting solution that effectively combines two sources of income. This allows for the maximization of profits from both the land lease and the entire investment.
This is because the rates offered for leasing land designated for energy storage and a solar farm are higher than if we were only talking about the solar installation. Therefore, today we will look at important aspects that will help you determine whether leasing land for solar farm with energy storage is feasible and worth considering.
Solar energy with battery storage – How Does It Work?
A solar energy with battery storage combines photovoltaic (PV) modules with energy storage systems (e.g., lithium-ion batteries), allowing for more efficient collection and utilization of energy.
When sunlight is at its peak, the panels produce the most energy. This energy can be used immediately or stored. For example, when energy production exceeds the current network demand, its surplus can be directed to the energy storage.
Learn more: How Solar plus Storage Systems Work?
Profitability of Leasing for Solar System and Energy Storage
An energy storage system integrated with a photovoltaic installation stores the excess energy produced. The stored energy can then be sold during hours when energy prices are higher, such as in the evening hours. Higher investor profits usually mean better leasing terms for the landowner.
Leasing Land for Solar Panels and Energy Storage in 3 Steps
Let’s start with the fact that you own land, perhaps you are a farmer or an entrepreneur, and you are wondering if leasing could bring you a stable income with minimal time investment. At the same time, you don’t need any capital contribution other than the land you are bringing to the investment.
Let’s now look at what steps you would need to take to successfully lease land for solar power with an energy storage system.
Step 1: Is Your Land Suitable for an Installation with Energy Storage?
At Electrum Ventures, we conduct advanced analyses that form the basis for fully utilizing the potential of your property.
If you want to assess the potential of your land, fill out the form at: We are looking for land
- Technical analysis – analysis of whether the land has suitable technical conditions (e.g., soil class, sunlight, terrain).
- Legal analysis – verification of whether photovoltaic systems and energy storage can be installed on your land.
- Access to the power grid – checking if access to the local power grid for energy transmission is possible.
- Environmental and planning approvals – ensuring there are no planning obstacles, such as collision objects or wooded areas.
Also read: Energy Storage Site Selection: What Land is Suitable?
Step 2: Land Lease Agreement Provisions
- Financial conditions – determining the amount of rent, forms, and payment terms.
- Obligations and rights of the parties – the lease agreement parties specify their obligations and rights.
- Duration of the agreement – determining the lease period and conditions for its extension or termination.
- Penalties for breach of the agreement – specifying the legal consequences in case of breach of the agreement terms.
A secure land lease agreement ensures the protection of the rights and obligations of both parties, which is why we recommend cooperating with a trusted partner. At Electrum, we have over 20 years of experience. Learn more about what we do here: What we do.
Step 3: Signing the Lease Agreement and Earning Profits
After signing a secure agreement, the owner of the leased land can start earning.
- Lease rent – regularly receiving lease payments will provide you with a steady income for a long-term period (agreements are usually signed for a longer period).
- Annual adjustment – allows adjusting the rent amount to inflation or other cost of living indices. This protection against the loss of rent value due to price increases ensures income stability for the landowner.
- Property tax refund
Also read: Initial and Basic Rent in a Lease Agreement
Summary – Benefits of Leasing Land for Solar Panels and Energy Storage
The benefits of leasing land for photovoltaics with energy storage include not only financial aspects but also environmental ones. The lessor contributes to the energy transition and the reduction of CO2 emissions and mitigating the effects of climate change.
Are you considering leasing your land for photovoltaics and energy storage? Go through the entire process with professionals. If you have questions, feel free to Contact us.
Also read: Leasing Land for Solar Farm: Essential Information
