Tolling agreement
A contract in which an offtaker pays the owner of a storage asset a fixed periodic fee for operational control, taking the market risk and the trading upside.
Under a toll, the asset owner hands operational control of the battery to an offtaker — typically a utility or trading house — in exchange for a fixed payment per MW per year. The toller decides when to charge and discharge, captures the trading revenue, and carries the market risk.
For the owner, a toll converts a volatile merchant revenue stack into contracted cash flow, which materially improves debt capacity. The trade-off is giving up upside in strong trading years.
Tolls sit at one end of a spectrum of BESS offtake structures: fully merchant optimisation agreements (revenue share) at the other end, with floor-plus-share hybrids in between.
Related terms
Structuring against this in a live deal?
ETC prices and executes PPAs across GB — founder-led, from indicative quote to signed contract.