From Application to First Payment: The Battery Storage Lease Timeline

Most Illinois landowners who inquire about battery storage leases have the same two questions: Is my land eligible? and When do I start getting paid? The first question depends on your proximity to grid infrastructure. The second depends on a timeline that's largely driven by regulatory and interconnection processes — not by you or the developer moving slowly.

Here's a realistic, step-by-step picture of what happens between the moment you submit a property inquiry and the moment the first lease payment lands in your account.

Phase 1: Site evaluation (weeks 1-4)

After you submit a property assessment at illinoisbattery.com/apply, our team evaluates your property against several criteria:

• Substation proximity: Is there a ComEd substation within 2-5 miles?
• Available capacity: Does the nearest substation have remaining interconnection headroom?
• Three-phase power access: Are there three-phase distribution lines connecting your property to the grid?
• Queue depth: How many projects are ahead of yours in the PJM interconnection queue at nearby substations?
• Site characteristics: Is the proposed area flat, well-drained, and accessible by road?

This evaluation typically takes 1-4 weeks. If your property doesn't qualify, we'll tell you why. If it does qualify, we'll move to lease negotiations.

Phase 2: Lease negotiation and signing (weeks 4-12)

If your site qualifies, the developer presents a term sheet with the key commercial terms: lease rate per MW, project size range, lease duration (typically 20-25 years), annual escalation rate (typically 2%), and any restrictions or use rights.

This is the stage where having an attorney review the lease is essential. A battery storage lease is a long-term commercial agreement that affects your property for decades. Common points landowners negotiate include:

• Minimum lease payment guarantees — ensuring you receive payment even if the project is smaller than originally scoped
• Decommissioning obligations — explicit requirements for the developer to remove all equipment and restore the site at end of term
• Access limitations — defining exactly where and how the developer can access your property
• Force majeure provisions — what happens if the developer can't complete the project
• Right of first refusal on lease renewals — ensuring you have priority to renew under new terms before the developer looks elsewhere

Lease negotiations typically take 2-8 weeks depending on how many provisions require back-and-forth. The developer wants this done quickly too — they have capital deployed and interconnection timelines to meet.

Phase 3: Interconnection application (months 3-18)

Once the lease is signed, the developer files an interconnection application with PJM (for projects above 5 MW) or ComEd directly (for smaller projects). This is where the timeline lengthens — significantly.

The interconnection study process is the longest phase of any battery storage project. It works like this:

1. Application filing: Developer submits interconnection request with project specs, proposed location, and connection point
2. Feasibility study (3-6 months): PJM/ComEd engineers evaluate whether the grid can support the project at the proposed location
3. System impact study (6-12 months): Detailed analysis of how the project affects the broader transmission system
4. Facilities study (3-6 months): Final engineering to determine exactly what upgrades (if any) are needed and who pays for them
5. Interconnection agreement: The formal agreement authorizing construction to begin

Total time through this process: 12 to 36 months, depending on queue position and study complexity. Projects near substations with ample available capacity and simple interconnection requirements move faster. Projects that require grid upgrades or are behind many other projects in the queue take longer.

This is why developers are working urgently to sign leases and submit interconnection applications now — the queue process takes time, and every month of delay extends the project timeline.

Phase 4: Permitting and site preparation (months 18-30)

While interconnection studies are ongoing, the developer begins the permitting process in parallel. For battery storage in Illinois, this typically includes:

• County zoning approval: Most counties treat battery storage as a utility use, similar to a substation. Some require a special use permit and public hearing. The process varies by county but typically takes 3-6 months.
• Environmental review: Most projects require a Phase I environmental site assessment. Projects on previously undisturbed agricultural land typically move through this quickly.
• Building permits: Standard structural permits for the concrete pad, fencing, and electrical work.
• ComEd coordination: Coordination with ComEd for the physical distribution line connection.

Site preparation typically begins after interconnection approval and permits are in hand. This includes surveying, site clearing, grading, underground conduit installation, and concrete work. For a 5-10 MW project, site preparation takes approximately 3-6 months.

Phase 5: Equipment delivery and commissioning (months 30-36)

Battery modules, inverters, transformers, and switchgear are delivered and installed. This is the phase where the project starts to look like something — you'll see delivery trucks, cranes, and construction crews on the leased area.

Equipment installation and wiring typically takes 2-4 months. After installation, the project goes through a commissioning process — testing every battery module, inverter, and safety system to verify the installation meets specifications before grid connection is authorized.

The developer and ComEd/PJM then coordinate the final grid connection, which involves physical switching at the substation and final safety inspections. Once energized, the project operates under a startup period (typically 30-60 days) before being declared commercially operational.

Phase 6: Commercial operation and lease payments begin

Once the project achieves commercial operation, two things happen: the battery starts earning revenue in energy markets, and your lease payments begin.

Most lease agreements specify that payments begin at commercial operation of the project — typically on a quarterly or annual basis, depending on the lease terms. Some agreements include a development fee or option payment once the lease is signed, providing income before construction begins.

The realistic timeline from lease signing to first payment is 2 to 4 years. This is longer than most landowners expect, and it's important to set accurate expectations. The delay isn't the developer moving slowly — it's the regulatory and utility process that every project must navigate.

What the timeline means for you

Phase	Duration	Who Is Doing the Work
Site evaluation	1-4 weeks	Illinois Battery team
Lease negotiation	2-8 weeks	Developer + your attorney
Interconnection studies	12-36 months	PJM / ComEd engineers
Permitting	3-6 months	Developer + county agencies
Construction	3-6 months	Developer's construction team
Commissioning	2-4 months	Developer + ComEd
Total: lease signing to first payment	2-4 years

During the interconnection and permitting phases, there is essentially no disruption to your property. The leased land remains in normal agricultural use until construction begins. You won't see equipment or crews until site preparation starts — which is typically well into year two or three.

How to prepare during the waiting period

If you've signed a lease and are waiting for project development to proceed, here are a few practical steps:

• Consult your tax advisor about how the lease income will affect your tax situation, including Schedule E reporting, potential property tax changes, and estate planning implications
• Notify your farm tenant if the leased area is currently rented to a crop tenant — the developer will need access to the site when construction begins
• Check your farm insurance policy — confirm that the battery installation won't affect your coverage on the surrounding property
• Keep your lease agreement current — if ownership changes, make sure the new owner understands the lease obligation and rights

Start the process today

The 2-4 year timeline makes one thing clear: the sooner you start the evaluation process, the sooner payments can begin. Waiting a year to "think about it" means waiting a year longer for income to start.

Submit a free property assessment to find out whether your land is near a viable substation. The evaluation is free and takes about two minutes. If your land qualifies, we'll walk you through lease terms and connect you with resources for attorney review. Use the earnings calculator to estimate what a project on your land might pay.