Solar, storage and the rise of “bring your own power”

Energy is becoming an increasingly important consideration in real estate strategy. Rising electricity demand, constrained grid capacity and growing resilience requirements are driving owners and occupiers to explore behind-the-meter energy solutions such as solar PV and battery storage, as explored in Knight Frank’s  From Real Estate to Real Assets report, work on Corporate Power Purchase Agreements (CPPAs) and occupier insights. 

One consequence is the growing adoption of behind-the-meter (BTM) energy infrastructure. In simple terms, BTM refers to energy assets that directly serve a building, campus or estate, either through on-site generation and storage or dedicated private-wire connections. Rather than replacing the electricity grid entirely, these systems typically complement traditional power supplies while providing greater control over how energy is generated, stored and consumed. 

For property owners and occupiers, the appeal is increasingly clear. Solar PV, battery storage and wider BTM solutions can potentially: 

• improve resilience,  
• accelerate development timelines,  
• generate revenue through demand-side flexibility,  
• reduce transmission and distribution costs, and  
• offer longer-term price certainty through power purchase agreements (PPAs). 

This is not an entirely new conversation and often sits within broader discussions around CPPAs. However, while CPPAs can be structured through virtual, sleeved or physical arrangements, the focus here is on physically connected infrastructure located on-site or directly linked to a property. 

Table 1: What do we mean by behind-the-meter energy? 

The policy environment is also moving in the same direction. Ofgem's ongoing demand connections reforms place greater emphasis on flexibility, efficient network use and the role that large energy users can play in supporting the electricity system. Alongside changes to grid connections, this is creating greater incentive for organisations to consider how generation, storage and energy management can be integrated into their property strategies, both at the outset but also in existing assets. 

Energy from the outset 

Energy was historically treated as a utility input, often addressed late in the development process. That is changing. As power availability becomes a more material constraint on delivery, energy is increasingly being considered alongside site selection, design, viability and long-term asset performance. 

Analysis of large and mega planning applications submitted between 2016 and 2026* suggests this shift is already visible in the development pipeline. Among data centre schemes, references to solar PV, battery storage and wider energy infrastructure have increased notably since 2021. Solar and/or battery references rose from around 18% of schemes submitted between 2016 and 2020 to around 26% since 2021, while references to other supporting grid infrastructure, such as substations, transformers and energy centres, increased more sharply. 

The pattern is different across industrial and logistics schemes. Solar PV remains the dominant technology, reflecting the opportunity to use roof space, support occupier sustainability targets and improve long-term energy cost management. References to solar and/or battery infrastructure increased from around 13% of schemes submitted between 2016 and 2020 to around 18% since 2021, while references to wider grid infrastructure remained comparatively limited. 

The distinction matters. Solar PV and battery storage are the clearest indicators of distributed energy being integrated into real estate. Supporting infrastructure, such as substations or transformers, does not necessarily indicate behind-the-meter deployment in itself, but it does show that power requirements are being addressed earlier in the planning process. Taken together, the data suggests energy is moving upstream, from a late-stage utility issue to a core development consideration. 

The trend may strengthen further as regulation looks to increasingly reward projects with credible energy strategies for data centres specifically. With demand for grid connections rising sharply, from 41 GW to 125 GW between November 2024 and June 2025, and data centre projects accounting for around two-thirds of the increase, Ofgem is proposing new measures to prioritise schemes that demonstrate credible progress. These include connection commitment fees and stricter development milestones, increasing the incentive for developers to secure viable power strategies at an earlier stage. 

For real estate owners, occupiers and developers, this matters because energy is increasingly influencing development viability, operational performance and long-term asset value. For energy generators and developers, it also points to a growing opportunity that real estate is becoming a more important deployment platform for distributed generation, storage and private-wire models. 

Not only a trend for new development 

The trend is not limited to new development. Existing buildings and estates are increasingly being assessed for solar PV, battery storage and wider energy infrastructure, particularly where organisations face a combination of high energy costs, resilience requirements and decarbonisation targets. This is especially visible across large public-sector property portfolios, including healthcare, higher education and transport estates, where energy strategy is increasingly becoming part of estate strategy. 

Recent market engagement exercises from University College London Hospitals NHS Foundation Trust, the University of Essex and Durham County Council point to growing interest in structured PPAs and dedicated renewable energy supply.  

Transport for London's solar agreement with SSE could provide up to 65,000 MWh of renewable electricity annually to the Underground network, with the installations expected to connect directly to TfL’s private electricity supply. 

The broader market also points to the growing role of distributed, commercial and non-utility scale solar deployment. Installations between 10 kW and 5 MW, used here as a proxy for these projects, have increased significantly in recent years. Annual installed capacity reached 350 MW in the year to June 2026, compared with 67 MW in 2021, when activity was likely affected by the pandemic, and an average of 123 MW per annum across 2018 and 2019 following the closure of the Renewables Obligation scheme. 

While utility-scale projects continue to dominate overall renewable generation, solar is increasingly being deployed closer to demand, on buildings, campuses and estates. As a result, energy is becoming an estate management issue as much as a procurement consideration, with organisations turning to on-site generation, battery storage and wider behind-the-meter infrastructure to improve resilience, manage costs and secure longer-term power supply. 

"Energy costs are once again front and centre of the political debate," notes David Goatman, Head of Energy & Sustainability. He continues: "Alongside the need to reduce energy bills, we are seeing growing demand from both landlords and occupiers to reduce energy spend through BTM projects, particularly on-site and near-site solar PV and battery storage. We expect this trend to continue over the next 12 months as the savings available from these projects become increasingly evident." 

From energy consumer to manager 

As power demand continues to grow, real estate owners, operators and developers can no longer treat power as just a utility bill. The growing adoption of solar PV, battery storage and private-wire solutions reflects a wider shift towards energy becoming an active component of asset management and potentially performance. 

While not every building will or can generate its own power, organisations that consider energy earlier, whether during site acquisition, development planning or asset management, are likely to be better positioned to manage costs, improve resilience and support long-term growth. 

*Analysis covers large and mega planning applications submitted during 2016-2020 and from 2021 to current day, limited to schemes recorded as in progress, pending, sold/to be sold or complete. Data centre and industrial/logistics schemes were identified using primary sector classifications and keyword searches of project descriptions. Solar and battery references include terms such as solar, solar PV, photovoltaic, rooftop solar, battery storage, BESS and energy storage. Wider energy infrastructure was tracked separately and includes references to substations, transformers, switchgear, grid infrastructure and energy centres. These references indicate that energy infrastructure is being considered within project descriptions, but do not necessarily confirm delivery or operational deployment.