Enable the next generation of Virtual Power Plant pricing

Gone are the days of ‘participation payments’. With Factor you can reward real-time participation with real-time value.

Virtual power plants promise to unlock massive grid flexibility by aggregating distributed energy resources. Batteries, solar, EVs, and demand response are just the beginning.

But pricing VPP offerings at scale faces a fundamental problem: every asset is different, every location has different network signals, and traditional tools can't model portfolio effects that smooth peaks and valleys across thousands of service points.

Complexity has hindered energy retailers' ability to maximise the value generated by Virtual Power Plants; Factor is here to solve this.

Factor makes VPP pricing profitable

Factor performs forecasts and calculations at the service point level, then bundles multiple connections and sites automatically. Offer different prices to different customers, tailored to your market. Factor ingests any data relevant to you; from weather patterns to tariff structures — so you can make your VPP competitive with price incentivisation that actually shifts customer behaviour.

How Factor powers VPP pricing

1.
Highly accurate forecasting
Model each Distributed Energy Resource individually with asset-specific parameters, consumption patterns, and network constraints
2.
Portfolio aggregation
Bundle multiple connections and sites automatically while preserving granular detail, modelling different options to better understand profitability
3.
Price signal optimisation
Apply network tariffs, wholesale prices, and ancillary service revenues across your entire fleet, or sites of interest
4.
Output pricing
Generate accurate pricing across Virtual Power Plants in ~10 seconds. No more lengthy calculations, just quick, up-to-date data

Precision, Speed & Scale

How will Factor accelerate my VPP offering?

Price the true value of aggregation
Most VPP pricing models treat assets as identical units. Factor models each service point individually, then aggregates to capture portfolio smoothing effects. Price what your VPP can actually deliver, not generic assumptions.
Scale without technical bottlenecks
Configure and experiment with VPP pricing scenarios without waiting on technical backlogs. Rapid idea-to-prototype workflows mean your commercial team moves at market speed, not development speed.
Bring pricing expertise to everyone
Factor operationalises your pricing team's intelligence into a platform. Pricing experts can scale their knowledge and make capability accessible across the organisation: sales, product, and operations.

Possibilities, unlocked

VPP Risk Modelling
Wholesale price risk management
Wholesale volatility creates real margin pressure. With Factor underpinning your VPP, retailers can price and forecast coordinated load and generation responses during high-price periods. Shape demand and dispatch DERs with confidence, reducing exposure to spot price spikes while maintaining customer value.
Margin at scale
Margin control across your customer portfolio
A VPP only delivers value if it’s priced correctly. Factor enables portfolio-wide forecasting and pricing that reflects how coordinated DERs shift consumption away from high-cost intervals. Align retail pricing with wholesale outcomes to improve margins at scale, without adding new generation assets.
Weather driven pricing
Renewable firming and dispatch optimisation
Variable renewables need predictability. Factor uses site-level parameters and weather-driven forecasts to price firming strategies across solar, wind, and storage-backed VPPs. By accurately valuing when energy is available and when firming is required, retailers can reduce curtailment, improve forecast accuracy, and make renewable generation more dispatchable, without directly controlling assets.

API-First Design

Built to integrate

Factor connects via API to your existing software solutions for seamless operationalisation of forecasting and pricing. Integrate with your CRM or CPQ to surface VPP pricing at point of sale. Data automatically publishes to files that your preferred platforms can ingest.

Factor enables rapid experimentation—configure the VPP product you want to test in ~10 seconds. No spreadsheets. No months-long backlogs.
Ready to scale your VPP offering?
Factor delivers the forecasting and pricing infrastructure that makes VPP business models economically viable
See how service point-level modelling works in a 15-minute demo
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Frequently
asked questions

How does Factor integrate with our existing systems?

Factor connects via API to your CRM and MDM (Market Data Management) systems. Forward contract details are captured in your existing CRM workflow, and Factor pulls usage data directly from your MDM. Billing-ready outputs flow back to your billing system automatically. No need to replace existing infrastructure.

How long does implementation take?

Most retailers are up and running within 2-4 weeks. The timeline depends on your existing API infrastructure and the complexity of your progressive purchasing products. Our team handles the technical integration while you focus on launching to customers.

Can Factor handle customers with multiple sites/NMIs?

Yes. Factor automatically aggregates usage across multiple NMIs and reconciles against hedge positions at the portfolio level. This is essential for C&I customers with complex site structures.

What happens when usage exceeds purchased hedges?

Factor calculates "overs and unders" automatically. You define the rules: apply spot prices, use a predetermined fixed rate, or apply time-of-use rates. Factor handles the calculation and includes it in the billing output.

Does Factor support different hedge types (baseload, peak, etc.)?

Absolutely. Factor manages multiple hedge products simultaneously—baseload contracts that cover all intervals, peak load for specific time periods, and custom variations. It handles overlapping hedges purchased at different times and rates.

How does Factor handle incremental purchases throughout the contract period?

Factor tracks all forward purchases chronologically and applies them correctly to usage intervals. As customers lock in additional load over time, Factor reconciles each interval against all applicable hedges in the order they were purchased.

Can we offer progressive purchasing to mid-market customers, not just enterprise?

Yes! Factor's automation eliminates the manual overhead that previously made progressive purchasing uneconomical for anyone except your largest accounts. You can now profitably serve customers at lower volume thresholds.

How are reconciliation reports generated?

Factor produces reconciliation outputs on-demand or on a scheduled basis (monthly, quarterly, etc.). Reports show hedge utilisation, spot exposure, and cost breakdowns by product type. These can be sent to your CRM for customer visibility and to your billing system for invoicing.

What if we already offer progressive purchasing manually?

Factor can take over your existing progressive purchasing operations without disrupting current customer arrangements. We'll work with you to migrate existing contracts and automate the reconciliation process going forward.

Is customer data secure?

Yes. Factor is built with enterprise-grade security standards. All data transfers occur via secure APIs, and we comply with relevant data protection regulations. We can provide detailed security documentation during the demo process.

What kind of support do you provide?

We provide technical support during implementation and ongoing operational support. Our team helps with product configuration, troubleshooting, and optimization as your progressive purchasing offering evolves.

How is Factor priced?

Factor operates on a tiered SaaS subscription model that scales with your business. Pricing depends on your transaction volume, customer count, and product complexity. Whether you're just launching progressive purchasing or already managing it at scale, we have a tier that fits.