The difference between net and gross revenue with battery trading

When trading with batteries on energy markets, you regularly encounter the terms gross revenue and net revenue. In this article, we explain exactly what the difference is, why Eddy Grid calculates based on net revenue, and how we help your battery achieve a quicker return on investment.

What is the difference between gross and net revenues?

• Gross revenue

  These are all revenues your battery earns by trading energy, for example on the Day Ahead, Intraday, passive imbalance and Ex Post markets. Costs have not yet been deducted.
   

• Net revenue

  This is the gross revenue minus:

• kW max costs (based on your highest recorded power)
• Variable grid transport costs
• Energy supplier costs

The net revenue is thus what you truly retain after all costs.

Why do we calculate based on net revenue?

Eddy Grid uses net revenue because this is the only relevant revenue for our customers. High gross revenues may sound attractive, but mean little if accompanied by high costs. Ultimately, your battery earns back its investment based on the money you truly keep: the net revenue.

Our commission is therefore deliberately linked to the net revenue:

• 12% of net revenue
• No fixed trading costs per MWh
• Full market access included (Day Ahead, Intraday, imbalance, Ex Post)

This alignment ensures Eddy Grid shares exactly the same goal as you: achieving maximum net revenue while keeping costs minimal.

Real-life example (April 2025)

In April 2025, we examined the effects of limiting the import capacity (LDN) of batteries, and discovered something remarkable. Despite gross revenues dropping by roughly 10% due to import limitations, net revenues increased by nearly 10%. This was primarily because the kW max costs and variable grid transport costs dropped significantly.

Practically, this meant that even though customers appeared to earn less gross profit, at the end of the month, they actually kept more money. This clearly illustrates why looking at net revenues is essential: it’s the best way to ensure your battery reaches profitability faster.

Why limiting import capacity works

From extensive analyses, we learned the following:

• Negative prices are key:

  The more frequently negative imbalance prices occur, the more appealing it becomes to avoid limiting your import capacity.

• Effects differ by market:

  Returns from passive imbalance significantly improve, while returns from Intraday slightly decline. Day Ahead returns remain roughly equal.

• Specific to your connection:

  If you already incur high kW max costs, limiting import capacity becomes less interesting.

We optimise and monitor these settings per location, ensuring optimal returns for each individual battery.

Eddy Grid’s asset-specific approach

Unlike many other market parties, Eddy Grid doesn’t rely on a generic strategy for all batteries. Instead, we train our algorithm specifically for each individual asset, considering local factors such as:

• Specific cost structures (kW max, grid transport tariffs)
• Historical price developments per location
• Grid congestion and connection requirements

This approach maximises the performance of every battery, month after month.

What can you expect as a customer?

Each month, you’ll receive a clear report from us, transparently showing:

• Gross revenues per market
• All incurred costs (kW max, grid transport, supplier)
• Your exact net revenue
• Eddy Grid’s fee

This level of transparency ensures you always know precisely how your battery is performing and where improvements are still possible.