Battery storage when you lease your building
Tenants can install battery storage with their landlord’s approval. Start with who pays the electric bill.
Which case are you?
Start with the utility account: is it paid by your landlord, your business or your corporate office? That helps determine the agreement, how savings reach you, and what happens if you move.
Who pays the electric bill?
Who pays the bill
Your landlord or the building owner
- 01Introduce us to the building owner.
- 02We set up a shared savings agreement with the building.
- 03The savings are split between the owner and you.
- 04If you move, the agreement stays with the building.
This is the setup we recommend when the landlord pays: the agreement is with the owner whose utility bill the battery reduces.
Who pays the bill
You do (or your corporate office does)
- 01With your landlord’s OK to install it, you can purchase the system or choose shared savings.
- 02The savings show up on your electric bill.
- 03If you relocate, the equipment can move with you.
- 04A new site means some interconnection fees, and savings can change somewhat, up or down, with the new utility and rate.
If corporate or a parent company pays your bill, bring whoever owns that budget in early: the savings land on their bill.
Who has to say yes
Three parties, and in some buildings one company fills two roles. Involve the right people early to avoid delays.
01
You, the tenant
You run the operation that sets the peaks, so the savings start with you. You (or whoever runs the site) decide whether the project is worth pursuing and champion it.
02
Your landlord
A battery is equipment installed on their property and wired into their building. Check your lease’s alteration clauses and get the landlord’s written approval before proceeding.
03
Whoever pays the electric bill
The savings land on their bill, so they need to be part of the decision. If that is your landlord, the agreement is with the building.
What your landlord will ask
Prepare for questions about the location, safety, insurance, electrical work and what happens at lease end.
- Where does it go?
- Usually outdoors on a pad near the electrical service, sometimes in an equipment room. The landlord will want to see the exact spot, the footprint and any trenching or wall penetrations.
- Is it safe?
- Ask for the system’s UL 9540 listing and a plan showing how the installation meets local building and fire requirements, including NFPA 855 where applicable. Confirm which approvals the local building and fire authorities require.
- What about insurance?
- Expect the landlord to ask for a certificate of insurance and to check how the equipment affects the building’s property policy. Your own insurer should hear about it early too.
- Who touches the electrical system?
- The battery ties into the building’s electrical service, so the work is done by licensed electricians under a permit, and the utility signs off on the connection before it runs.
- What happens if the tenant moves?
- If the landlord pays the electric bill, the agreement is with the building and stays when a tenant leaves. If the tenant pays, the system can go with them, so agree up front how the site is left.
How to start the conversation
Most of the work is getting the right people the right facts in the right order.
01
Check who pays the electric bill
Look at the bill. Your landlord, you, or your corporate office: that decides how the project is set up and where the savings go.
02
Read your lease
Find the clauses on alterations, utilities and end-of-term restoration. They tell you what consent you need and what the landlord can ask for.
03
Bring in whoever pays
If your landlord pays, introduce us to the building owner. If corporate pays, bring in whoever owns the utility budget. Better early than at the end.
04
Go to the landlord with specifics
Bring a proposed location, a safety plan and a clear explanation of what the project means for the building. These give your landlord something concrete to review.
Questions tenants ask
Can a tenant install a battery? Does the landlord have to approve?
Yes. It depends on who pays the electric bill. If your landlord pays it, introduce us to the building owner: we can set up a shared-savings agreement with the building and split the savings between the owner and you. If you pay the bill, you can buy the system or choose shared savings, and if you relocate, the equipment can move with you. Either way it is installed on the landlord’s property, so expect to need their written OK.
What happens to the battery if our lease ends or we move?
If your landlord pays the electric bill, the shared-savings agreement is with the building, so it stays with the building when you move. If you pay the bill, the equipment can move with you. A new site means some interconnection fees, and savings can change somewhat, up or down, with the new utility and rate. Confirm relocation responsibilities and costs in your agreement before signing.
Our lease has 3–5 years left. Is it still worth it?
It can be. If your landlord pays the bill, the agreement is with the building, so it does not end when your lease does. If you pay the bill, the equipment can move with you when you go. The assessment should weigh projected savings during your remaining lease against the costs of your chosen option and any planned move.
Corporate or the parent company pays the utilities. Who decides?
Usually corporate decides with you, because the savings land on the bill they pay. The site team makes the case (it knows the equipment and the peaks), and whoever owns the utility budget signs off. Bring them in early.
The landlord’s name is on our single shared meter. How would savings reach me?
The utility-bill reduction would appear on the landlord’s account. Introduce us to the building owner: we can set up a shared-savings agreement with the building. Agree with the owner how your share of the savings will reach you.
What does the landlord get out of it?
If they pay the electric bill, a share of the savings under a shared-savings agreement with the building, with $0 upfront. Either way, a tenant who is cutting costs, and equipment that is permitted, insured and maintained. Ask what matters to your landlord: some care most about safety, others about the building’s energy profile.
Related
General information, not legal advice. Your lease and local code decide the details.
Take control of your power
Find out if it pencils out for your site
Send a recent electric bill. We tell you what a battery could save, and work through the landlord and lease questions with you. If you spend more than $10K a month on electricity, it’s worth a call.