How to maximise income through energy development diversification

Hosting an energy development on your land can diversify your income through long term rental payments or land purchase deals, providing you with long term security. There has long been a link between using farmland for both food and energy production and, with demand for energy increasing, there are now numerous opportunities to maximise income through using your land to host an energy development. Whilst generating your own electricity through solar PV panels and heat from biomass is now common amongst landowners, the ability to sell power onto National Grid provides long-term income diversification opportunities.

Why does the UK need to produce more power? 

Secure, reliable energy delivery is vital for a prosperous economy and society. Rising energy demand, coupled with changes in the way electricity is generated, means that homes and businesses are at risk of the lights going out. With increasing interdependency between our lives and the power network, constant power has become essential. As the business world becomes ever more dependent on technology, the threat of unreliable power supply needs to be faced. 

What are the energy companies doing to respond to these challenges? 

The UK’s energy system is going through a transformation. The advance of new technologies combined with the push to reduce carbon emissions means the power system is shifting to a more decentralised, smarter and flexible model. Energy developers are working to balance the energy trilemma through improving the security of energy supply, utilising lower carbon generation/storage and lowering the cost of supply through onsite generation. 

What does this mean for farmers and landowners? 

Landowners are facing increasing challenges about how to maximise the value of their land and assets. Realising the full revenue stream from your land can safeguard your business and offer long-term security. 

Energy developers are looking for land to host energy developments. Hosting an energy installation on your land secures a long-term income stream, maximising land value and supporting the transition to greener energy. It provides you with a typically higher financial return which is guaranteed through a long-term (25 years) rental or land purchase – something which is not possible from traditional farming methods. 

What are the benefits of hosting an energy development? 

Integrating and utilising different methods of energy generation and storage, both renewable or conventional, offers landowners benefits ranging from the potential for income generation to significantly reduced long-term costs. Add in greatly increased energy security and the subsequent reduced risk of power outages, and it means reliable, greener energy is within reach. 

What technologies might be used? 

These developments can incorporate a range of lower-carbon energy technologies, such as: 

• Battery energy storage
• CHP (Combined Heat and Power) 
• Solar
• Wind
• Gas

How can I find out if my land is suitable for energy development? 

Contact an energy developer such as Enso Energy  to find out if your land is suitable. The process is relatively simple and broadly speaking runs through the stages of feasibility, investigations, agreement of terms, planning and then into project start. Generally speaking, our landowners wish to maximise revenue from their land and assets, are close to an existing gas or electrical grid connection and are concerned about sustainability and the environment.

What happens next? 

At Enso Energy we assess site suitability through desktop analysis and when required, a site visit. If the site looks viable, it is essential to verify the ability to connect to the electrical and/or gas networks in the local area. To enable this, a Letter of Authority (LOA) is a pre-requisite. This simply grants us permission to submit a grid application on the landowner’s behalf. If the electrical connection offer is feasible and the landowner would like to continue working with us, we will agree on the rental deal and commercial terms and, all being well, we will enter into the development process.

From here we will prepare and submit a planning application and instruct solicitors to complete the option to lease documentation. When the project achieves planning consent, we will enter into the lease and start construction as soon as possible.

There are lots of energy developers out there. How do I find one that’s right for me? 

It’s important to have confidence in the energy partners you choose and their ability to deliver the optimal strategy for your site. The fast-paced power world can be confusing to navigate, so choose a partner who will guide you through the options to find the right way forward for you and your site. Enso Energy foster long-term relationships which benefit landowners and the wider community, offering you peace of mind and ongoing support. 

We are firm advocates of lower-carbon, efficient, secure and sustainable energy that can be generated, stored and utilised locally. We are passionate about creating positive change for our clients, their communities and our countryside. Our energy solutions are all about creating a better world, meeting our present needs without compromising the ability for future generations to do so. 

How can I find out more? 

There’s lots of information at www.ensoenergy.co.uk. You can call us on 01452 764 685 or email us on enquiries@ensoenergy.co.uk