If you own land near grid infrastructure, you may have a choice: lease it for solar or for battery storage. The per-acre economics are dramatically different. This guide compares the two options on income, requirements, timeline, and risk so you can make an informed decision.

How Do Battery Storage and Solar Farm Income Compare?

The headline comparison is striking: BESS pays 10-25x more per acre. But total income depends on how much land you can lease. A farmer with 100 acres will earn more total income from solar (£85,000-£135,000/year) than from BESS on 2 acres (£20,000-£80,000/year). The question is whether you have the grid conditions for BESS.

How Do Battery Storage Projects Generate Revenue?

Battery storage projects generate revenue from four streams, which is fundamentally different from solar farms that earn from electricity generation. BESS projects earn from grid services — providing stability to the electricity network:

• Frequency response (50-60% of income): National Grid pays batteries to respond within seconds when grid frequency drops below 50Hz. Contracts include Dynamic Containment, Dynamic Moderation, and Dynamic Regulation.
• Energy arbitrage (20-30%): Buy electricity when cheap (overnight, high wind periods) and sell when expensive (evening peak). Revenue increases with wholesale price volatility.
• Capacity market (10-15%): Government-backed contracts guaranteeing availability during peak demand periods. Provides predictable baseline income for 1-15 year terms.
• Ancillary services (5-10%): Reactive power, voltage support, and black start capability. Increasingly valuable as more intermittent renewables connect to the grid.

A well-optimised 50MW BESS project generates £4M-£7.5M per year in combined revenue. Landowner lease payments represent 2-5% of gross project revenue, which is why BESS developers can afford £10,000-£40,000/acre.

When Should You Choose Battery Storage Over Solar?

Battery storage is the better option when your land has these characteristics:

• Small plot (under 25 acres): Solar farms need 25+ acres to be viable. BESS needs only 0.5-2 acres. If your land is too small for solar, BESS may be your only option — and a highly profitable one.
• Near a major substation: Within 500m-1km of a 33kV, 132kV, or 400kV substation. This is the single most important factor for BESS viability. Use a grid capacity checker to assess your proximity.
• Land rejected for solar: Land that failed solar assessment due to size, aspect, or shading may still qualify for BESS if it has grid proximity.
• Faster income needed: BESS develops in 18-30 months vs 3-5 years for solar. If time-to-income matters, BESS is significantly faster.

When Should You Choose Solar Over Battery Storage?

Solar farming is the better option when:

• Large acreage (25-500+ acres): Solar scales with land. A 200-acre solar farm at £1,200/acre generates £240,000/year. BESS on 2 acres generates £20,000-£80,000/year. Total income favours solar at scale.
• No nearby high-voltage grid: If the nearest 33kV+ substation is more than 1-2km away, BESS connection costs become prohibitive. Solar can connect to lower-voltage 11kV networks.
• More predictable income preferred: Solar farm income is based on sunlight hours and fixed tariff rates. BESS income depends on wholesale price spreads and frequency response contracts, which are more volatile (though your lease payment is fixed regardless).
• Agricultural land classification: Grade 3b and below agricultural land is preferred for solar farms. Grade 1-2 (best and most versatile) land is harder to get planning approval for solar but may still qualify for BESS due to the minimal footprint.

Can You Combine Both on the Same Land?

Yes, and co-location is increasingly common. A typical arrangement: 2 acres near the grid connection point host BESS, while the surrounding 50-200 acres host solar panels. The solar farm generates electricity during the day; the battery stores excess for evening dispatch when prices are higher.

Co-location offers several advantages:

• Shared grid connection: One connection serves both projects, reducing the highest single cost of development
• Improved planning prospects: Battery storage can strengthen a solar farm planning application by demonstrating grid-balancing benefits
• Higher total income: The 2 BESS acres at £20,000-£80,000 + the solar acres at £850-£1,350/acre combined exceed either project alone
• Revenue diversification: Solar income (sunlight-dependent) and BESS income (grid services) have different risk profiles, reducing overall volatility

How Do Development Timelines Compare?

BESS projects move faster because they are smaller (fewer planning objections, simpler environmental impact), and can sometimes access grid capacity faster because batteries can both import and export — making them more useful to grid operators managing congestion.

Battery vs Solar FAQs