Business Model: Land Lease - Net Zero Go
Resource

Business Model: Land Lease

A Land Lease is a low risk-low revenue Commercial Arrangement where the LA retains little control over the resulting service by leasing land it owns to a service provider. 

Business model

Part of: National EV insight & strategy (NEVIS)

This resource is part of a collection

Print Email Share URL LinkedIn

A Land Lease is a low risk-low revenue Commercial Arrangement where the LA retains little control over the resulting service by leasing land it owns to a service provider.  This is the least involved option for the LA.

The LA offers land holdings which may be suitable for EV charging and leases them to a service provider. All capital and operational costs are covered by the service provider who also retains the risk and responsibility associated with installation, maintenance, and asset utilisation.

Since a ‘Lease’ is just an interest in the property, the party leasing the land has a grant of possession of the land for a definite period and for a definite payment arrangement.  Consequently, the LA has no control over the eventual EVI that is deployed.

Key Features

The division of Investment, Ownership, Control, Responsibility and Revenue between the LA and service provider are presented below for just the Land Lease arrangement. This is an extract of the full comparison between all Commercial Arrangements.

Who Invests?

  • CAPEX

    Supplier

  • OPEX

    Supplier

Who Owns what?

  • Grid connection

    Supplier

  • Grid connection to feeder pillar

    Supplier

  • Feeder pillar

    Supplier

  • Groundworks to chargepoints

    Supplier

  • Chargepoints

    Supplier

Who Controls what?

  • Planning approvals

    Supplier

  • Grid connection

    Supplier

  • Grid connection to feeder pillar

    Supplier

  • Feeder pillar

    Supplier

  • Groundworks to chargepoints

    Supplier

  • Chargepoint Installation

    Supplier

  • Operations

    Supplier

  • Insurance

    Supplier

  • Customer service

    Supplier

  • Electricity purchase

    Supplier

  • Decommissioning

    Supplier

Who owns the risk?

  • Technology obsolescence

    Supplier

  • Regulatory change

    Supplier

  • Electricity prices

    Supplier

  • Utilisation

    Supplier

Who takes revenue?

  • EV charging income

    Supplier

  • Ground rent

    Local Authority

Register to access the full article

Designed to aid Local Authorities in developing robust, evidence-based plans to enable Net Zero.

Register now

Already have an account? Login

Free UK Local Authority access

Register now
  • Guest preview of selected publicly available resources
  • Full library of 1,000+ articles
  • CPD accredited e-learning courses
  • Case studies
  • Discussion forum