CurveBlock
Electricity network charges in the UK have two principal components relevant to project economics: transmission charges (often described as TNUoS) and distribution charges (DUoS). Distribution network operators recover costs of local networks through DUoS tariffs, which vary by region and by the time profile of import and export. Historically, embedded benefits — payments or avoided costs associated with generation located behind the meter — provided revenue uplift for export. Changes in charging methodologies and regulatory reviews of residual cost allocation have required projects to reassess how much of that uplift is durable.
For small-scale solar, export revenues can be modest relative to on-site consumption savings. Batteries change this dynamic by enabling time-shifting: charging when export or grid prices are low and discharging to capture higher prices or to avoid export constraints. However, locational signals from DUoS and potential curtailment risk when local networks are constrained mean that geography matters. In congested parts of a distribution network, export may be curtailed or subject to lower revenues, while co-located storage can monetise flexibility markets or reactive power services where available.
Retail investors in fractional renewable assets should therefore consider how a project's revenue model is exposed to network charging and locational risk, whether value relies on time-limited embedded benefits, and whether project operators have contractual routes (for example through aggregators) to stack revenues from capacity, balancing, or local flexibility services. Contractual clarity and sensitivity analysis in offering documents help assess these technical revenue drivers.