Quick answer
Do not assume a quoted trading figure is what the client will receive. Ask whether it is gross market revenue or the amount left after charging costs, losses, provider fees, revenue share and other deductions. In the proposal, show the gross figure, each deduction and the expected customer payment separately.
It depends on the provider and the quote they send you. Do not assume the battery trading revenue quote you get from an aggregator or Virtual Trading Party shows the amount of money the client will receive.
Some providers give a trading revenue number before they deduct charging costs, charging and discharging losses, market, settlement and route-to-market charges, controller or metering costs, their fixed fee, their revenue share, any fee, referral fee or revenue share you take, VAT and any later settlement corrections.
In the proposal you send to your client, show the gross trading revenue, each cost, charge or deduction, and the expected customer payment separately. Speak to your aggregator or VTP to confirm what their figure includes, what they still deduct, and how they calculate the customer payment under the trading contract.
Check which number the aggregator or VTP has quoted
Gross market revenue is the money the aggregator or VTP records from export trades or from instructions that change the battery’s charge and discharge pattern. This is before they take their fee or revenue share.
Not all providers calculate the gross figure in the same way, so check whether they have already taken out the electricity used to charge the battery and the energy lost during charging and discharging.
The net customer payment is the amount that’s left after the deductions shown in the trading contract. This is the customer’s share after the aggregator or VTP has made the agreed deductions, and is what your client would expect to receive under the contract. They should also be able to check this against the trading statement.
If the aggregator or VTP gives a headline trading figure, ask for the calculation behind it and check it before you show the number to your client. Do not rely on a percentage or a single “net” label without seeing how they calculate what your client should expect to receive, because it can damage trust if the payment they receive is lower than what you told them.
Your proposal should show the gross trading revenue, the deductions and the expected customer payment separately.
Show what comes off before the client gets paid
In your proposal, state whether the aggregator or VTP has included or excluded:
- Electricity used to charge the battery
- Energy lost during charging and discharging
- Market, settlement and route-to-market charges
- The provider’s fixed fee
- The provider’s revenue share
- Any fee, referral fee or revenue share you take
- Controller, metering and communications costs
- Penalties or later settlement corrections
- VAT where applicable
In the proposal, start with the market revenue, list each deduction, then show the expected customer payment.
GridVolt provides a separate GridTrade statement showing the trading revenue, deductions and customer payment calculation. Use the actual GridVolt fee and revenue-share terms for the job, plus any fee, referral fee or revenue-share arrangement you have that affects how much the customer gets paid. Do not assume one standard percentage or calculation method applies to the customer you are quoting.
If the aggregator or VTP plans to use battery capacity that would otherwise support peak shaving, tariff saving or solar storage, show any lost bill saving separately from the trading payment.
Related questions
What battery trading income can we put in a GB commercial proposal?
What trading revenue is realistic for a commercial battery in Great Britain?
What will a finance director challenge first in a battery proposal?