Hydro
Capitalising a hydro lease
Hydro leases can carry some of the most stable income of any renewable technology — but also some of the most exposed to sudden regulatory change.
In late 2025, a number of landowners with hydro projects were hit with sudden, backdated business rates liabilities following a change in valuation methodology — in some cases increasing rates by up to 500% versus previous levels. It's a clear example of how income that looked stable and contractually secure can change quickly, and part of why some hydro landowners are choosing to capitalise part of their lease now.
Any stage of development
Leases can typically be capitalised whether a project is still in planning, under construction, or already operational — the valuation simply reflects the stage the project is at.