At Madison Street Energy, we’re excited about the current and future opportunities for landowners who lease their land for battery energy storage system (BESS) projects — especially given the shifting policy and market landscape for renewables.
What’s changing — and why it matters
First, the big picture: while solar and wind have been the poster children for the clean-energy transition, recent legislation has altered the incentives for those technologies. For example, new rules have significantly tightened when and how solar and wind projects can qualify for major tax credits. As a result, the pipeline for new solar and wind development is expected to drop in the coming years.
In contrast, BESS projects are in a strong position. Standalone energy-storage systems (not necessarily paired with wind or solar) are now eligible for clear federal incentives and enjoy favorable economics. According to recent research, nearly two-thirds of planned US BESS projects are eligible for a 40% tax credit under certain conditions. S&P Global
And like many others in the industry, we believe this creates a win-win: landowners get new leasing options, and the energy industry gets the flexible assets it needs.
What this means for landowners
If you own land and are considering leasing it for energy infrastructure, here’s why BESS is particularly appealing right now:
- Upfront lump-sum payments: At MSE, we’re prepared to provide landowners with upfront payments when they grant an option to lease their land for a BESS project. That means you don’t have to wait years to see value.
- Less dependence on solar/wind build-out: Because BESS can be sited not only behind new renewables but also independently in strategic grid-locations (for example where storage is needed for grid stability), the opportunity set is larger.
- Longer incentive horizon: The tax credits and incentives for BESS have a more robust timeline than those for some new solar/wind projects. For example, standalone storage under Section 48E remains eligible for generous treatment for projects that start construction before 2033. pv magazine USA
- Flexible site requirements: Solar farms often demand large acreage, specific orientation, interconnection constraints, etc. BESS installations are comparatively more flexible in siting, making smaller parcels or different land types viable. (For example, some analysis shows that storage can require far less acreage than generation projects.) Billy Prim
How MSE supports landowners
Here at MSE, our goal is to partner with landowners who want to accelerate their financial return from energy-lease opportunities. What that looks like:
- We offer lease monetization or buy-out options: If you prefer to receive payment upfront rather than waiting for annual lease income, we can structure that.
- We help you evaluate the trade-offs: e.g., what site constraints might be, what the term of the lease would involve, potential tax or legal considerations.
- We stay aware of evolving incentives: Since policies change, we guide landowners on how the timing and structure of a lease might affect your benefit.
Why we believe the opportunity will grow
Because of the dual factors of:
- A slowing pipeline for traditional solar/wind projects (which increases the relative attractiveness of storage); and
- Strong, long-term incentives and structural need for energy storage on the grid (to manage variability, support reliability, smooth peaks) —
we believe landowner opportunities in BESS will rise, not shrink.
For example: in the U.S. in 2024 alone 10.3 GW of utility-scale BESS were installed, and estimates suggest an ~80% increase to the end of 2025. Crux Climate
A few things to keep in mind
- Each site is different: zoning, interconnection, access to grid infrastructure, transportation, land contours, and environmental factors all matter.
- Timing matters: While incentives are strong for storage, certain tax-credit eligibility rules (domestic-content thresholds, foreign-entity restrictions) are evolving. EticaAG+1
- Leasing terms should be carefully reviewed: As with any long-term lease, you’ll want clear terms on payments, responsibilities, site remediation, extensions, etc.
- Alignment with your goals: Are you comfortable with the length of the lease, potential for future land use, and how this fits into your family property vision?
Final thoughts
For landowners looking ahead, the BESS opportunity is compelling: a pathway to monetize land for a vital component of the clean-energy transition — with flexibility, strong incentives, and growing demand. At Madison Street Energy, we’re excited to help connect landowners with these opportunities and support them through the process — from initial option grants to full lease monetization.
If you’re curious about how your land might qualify, what an upfront payment might look like, or how BESS leasing compares with other land-use alternatives, we’d love to talk. Reach out — let’s explore your options together.