We have been approached by a company that wants to put large banks of batteries on 10-15 acres. These batteries store up excess power purchased from the grid and then sell it back when the demand goes up. Never heard of this before, but I have found some information on the web explaining it. Sounds interesting because they don’t use much land and the per acre dollars is pretty good.
My question is about the money they are offering. I can’t find anything online to compare their offer to and I don’t want to leave money on the table if we decide to go through with this. If anyone can help it would be gratefully appreciated.
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You need to work with an attorney in state where land is located and who is experienced in this area as the contracts are complex, and largely similar to solar contracts (not oil and gas leases). Usually there are 3 time periods, with varying annual lease rates, 1. Feasibility period up to 3 years where lessee lines up contracts and financing. 2. Construction period of 1 year. 3. Operations period of May 10 years + renewables or 20 years plus renewable. This is not do-it-yourself. Do not commit to lease rates until you consult with an attorney.
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Absolutely contact an attorney!
I am not familiar with these battery banks but if your property is in Texas (or any other state for that matter) if for some reason the batteries have issues or leak and anything is leached into the ground the EPA has VERY stringent regulations regarding contamination and cleanup procedures. Our family learned the hard way! Be sure you ask your attorney regarding verbiage to put safeguards in the contract.
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I have always gone through my attorney before signing any leases. I am in Texas. This is something new to this area and I am looking for feedback from others who have had similar offers. Lots of solar projects are being built in the area so these storage projects should start popping up. Have zero use for solar panels but the storage projects look like a good way to supplement income without losing all the land.
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What county in Texas are you located? I’m in Jefferson County. I was approached a couple of years ago about leasing 20 acres for battery storage and worked with my attorney who specializes in green energy projects. They would not bond the project until the 15th year which scraped any potential dealings. I also questioned why they would place such a project on farm land 11 feet above sea level, especially after knowing the surge level of Hurricane Ike.
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We are located in Milam County and flooding isn’t an issue. They’re offering 30k a year with annual escalation. Don’t know how this stacks up to other similar projects, but it’s a lot more than cows eating grass. I agree with what you said, the main concern is a bond to clean the mess up at the end or if they abandon it.