Energy Storage Systems

What is a Battery Energy Storage System?

A battery energy storage system (BESS) works by drawing electricity from the grid when there is a surplus and storing the energy for use later.  It is formed from banks of batteries. These batteries are housed within a steel protective enclosure usually made up of modular steels units similar to shipping containers. These systems have become increasingly crucial in addressing capacity issues for the electrical grid in the United States. With the growing demand for electricity and the integration of renewable energy sources like solar and wind, the grid faces challenges in balancing supply and demand, particularly during peak usage times. Battery energy storage systems offer a solution by storing excess energy during periods of low demand and releasing it during peak times, thereby stabilizing the grid and ensuring reliable energy delivery to consumers. Renting your land for such a system would not only contribute to the stability of the electrical grid but also provide a sustainable and forward-thinking investment opportunity.

Do I qualify for an Energy Storage System?  

How much land do I need?

As a landowner, if you meet certain criteria, you could be eligible to rent your land for a battery energy storage system. Typically, the amount of land needed depends on the scale of the proposed system and local regulations.  

• 1 to 15 acre(s) of land will generally accommodate an energy storage project.

• proximity to electrical infrastructure for grid connection particularly a substation

• suitable terrain for installation

• compliance with zoning and environmental regulations

• access to the site for maintenance and security purposes.

• A minimum separation of around 500 feet to non-participating residences and sites of sensitive designation

If your land meets these requirements, renting it for a battery energy storage system could provide a long-term reliable source of income.

Why are energy storage projects needed in the United States?

Energy storage projects are essential in the United States for several reasons. Firstly, they play a crucial role in enhancing grid stability and reliability by storing excess energy during periods of low demand and releasing it during peak times, thus balancing supply and demand. Additionally, energy storage helps integrate renewable energy sources like solar and wind into the grid by mitigating their intermittency, thereby facilitating a smoother transition to a cleaner energy mix. Moreover, energy storage projects can provide backup power during outages, high peak periods, or emergencies, improving grid resilience and reducing the risk of service disruptions. There are number of existing battery energy storage locations in the United States with many more in development.  Overall, energy storage projects are needed to support a more efficient, resilient, and sustainable energy infrastructure in the United States. 

How are transactions structured, and what income and other benefits could I receive?

• Stable Income: Renting land for a battery energy storage system offers a reliable and potentially long-term source of income for the landowner.  Depending upon location rents can start annually at $xxxxx/per acre.

• Option to Lease Structure:  Typically, the Option to Lease is structured with a 5-year option period which may be flexible dependent upon the location.  The lease length is 25 years with an option to extend.  There are no costs for the landowner, all due diligence, construction, and maintenance is done by a third party.

• Utilization of Unused or Underutilized Land: It allows for the productive use of land that might otherwise remain unused or underutilized.

• Contribution to Sustainable Energy: Supporting renewable energy infrastructure contributes to sustainability efforts and reduces carbon footprint.

• Minimal Site Maintenance: Energy storage systems typically require minimal ongoing maintenance.  Landowner is not responsible for maintenance.

• Potential Property Value Increase: Hosting energy infrastructure could potentially increase the value of the property.  An energy storage unit becomes a stable income producing asset potentially increasing the value of your land.

• Support for Grid Stability: By hosting energy storage, landowners contribute to grid stability and reliability, benefiting the local community and economy.

What is the time frame for identifying and developing a BESS site?

Stage Timeframe

Contact SLC to request more information and submit your location for consideration.

Initial review to determine suitability 2 -3 weeks

Confirm terms of option to lease for approval and signature 6-8 weeks

Due Diligence period to prepare utility interconnection application, planning review and other testing required for suitability

During option period Submission of planning approval to jurisdiction

During option period Trigger Option to Lease

During option period Construction/installation Within 3 months of lease commencement