This article brings together Modo Energy’s key research and analysis from Q2 2025 — covering battery revenues, policy shifts, solar analysis, and buildout trends across Great Britain.

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Battery storage revenues held steady in Q2 2025, averaging £71k/MW/year across the quarter. Trading performance dipped in April and May but rebounded sharply in June, driven by high intraday spreads and record Balancing Mechanism Offers.

Quick Reserve continued to grow as a revenue stream, and our research in the quarter uncovered the impact of penalties on these returns.

In addition this, we explored the growing risks of solar cannibalisation, as midday generation increasingly drives down capture prices and CfD payouts. Developers face a clear challenge: standalone solar is becoming less viable.

Beyond operations, revenue structure, policy and market design were front of mind. Gresham House revealed the first public GB revenue swap contract, zonal pricing was officially ruled out (though location still matters), and battery buildout continued at pace — with GB hitting 5.6 GW of capacity. From contract structures to deployment trends, Q2 highlighted both commercial innovation and the scale of effort still needed to meet 2030 targets.

Benchmarking

How low demand and high renewables pressured revenues in Q2 2025

Battery energy storage revenues in Great Britain averaged , down from £82k/MW/year in Q1 but shaped by a varied mix of system conditions and market drivers. April saw a drop in performance following record Balancing Mechanism activity in March, while May delivered only modest gains. It wasn’t until June that battery revenues rebounded, lifted by exceptional intraday trading conditions and a recovery in the Balancing Mechanism.