Calculating total revenues

Merchant Revenue

Simply calculated as wholesale power price (£/MWh) multiplied by unclipped solar generation (MWh), divided by the installed solar capacity (MWp).


Merchant Revenue (£/MWp) = (Wholesale Price × Unclipped Generation) ÷ Installed Capacity (MWp)

CfD Difference Payments

Payments made when the wholesale price is below the CfD strike price. Calculated as the difference between the CfD strike price and wholesale price, multiplied by the unclipped solar generation (MWh), divided by installed solar capacity. No payments are made during negative-price periods.

If day ahead wholesale power price is greater than the agreed CfD strike price, difference payments are negative and the generator pays the LCCC.

If day ahead wholesale power price is lower than the agreed CfD strike price, difference payments are positive and the generator is paid by LCCC.

CfD Revenue (Merchant Revenue + CfD Difference Payments)

Combines the merchant revenue with CfD difference payments. When wholesale prices are negative, CfD revenue is set based on whether the solar asset is exposed to negative pricing. If exposed, negative wholesale prices directly impact revenue; if not, revenue is zero during negative price periods.


CfD Revenue = Merchant Revenue + CfD Difference Payments

REGO Revenue

Revenue from Renewable Energy Guarantees of Origin, calculated by multiplying the unclipped solar generation (MWh) by the forecasted REGO price (£/MWh), divided by installed solar capacity (MWp).


REGO Revenue (£/MWp) = (REGO Price × Unclipped Generation) ÷ Installed Capacity (MWp)

Total Revenue for Merchant Project (REGO + Merchant Revenue)

Sum of merchant revenue and REGO revenue, providing total merchant scenario revenue.


Total Merchant Revenue = Merchant Revenue + REGO Revenue

Total Revenue for CfD Project (REGO + CfD Revenue)

Sum of CfD revenue and REGO revenue, giving total revenue under the CfD scenario, including merchant tail after the CfD contract ends.


Total CfD Revenue = CfD Revenue + REGO Revenue

As seen below, in time where day ahead power price is below a project's strike price, CfD difference payments, prop up revenues.