Performance-based fees

A performance-based fee model means the customer pays no up-front CapEx for the control layer, and the vendor's fees are proportional to the value actually delivered at the site.

Typical structure:

• The vendor invests the up-front cost of the edge controller, integration work, and market participation setup.
• On-site savings (peak-shave, tariff optimisation) accrue to the customer, 100%.
• Grid revenue (FCAS, Reserve AS, arbitrage) is split according to a pre-agreed formula (typically 70/30 in the customer's favour, after aggregator fees).
• No fixed monthly fee; no long-term lock-in beyond an initial period.

This model changes the internal-approval story materially. It converts a CapEx procurement conversation into an OpEx classification, which is what most industrial operators can approve at the plant-manager level without capital-committee involvement. See the article on CapEx-free optimisation for the fuller argument.