Draft: Business Models for the NFE Microgrid OS

Nearly Free Energy (NFE) Microgrid OS needs a clear model for generating sustainable revenue while enabling community energy systems. Two primary deployment models are proposed. 

 

 1. NFE-Owned Microgrid Model 

 In this model, NFE owns and finances the microgrid infrastructure within a community. 

 Infrastructure 

 NFE provides and owns: 

 

 

 Submeters 

 

 

 Battery storage 

 

 

 Solar generation 

 

 

 Microgrid control infrastructure running NFE Microgrid OS 

 

 

 Commercial Structure 

 NFE signs a Power Purchase Agreement (PPA) with the community, landlord, or HOA. Residents then purchase electricity directly from the microgrid. 

 Revenue 

 NFE earns revenue through: 

 

 

 Electricity sales to customers 

 

 

 A reliability premium for improved power quality 

 

 

 Optimization of solar and battery storage to improve margins 

 

 

 Key Tradeoff 

 This model captures the most revenue but requires significant upfront capital and operational responsibility. 

 

 2. NFE Partner Microgrid Model 

 In this model, a partner owns the infrastructure while NFE provides the operating platform and technical services. 

 Typical partners include developers, landlords, housing estates, or community energy groups. 

 Infrastructure 

 The partner finances and owns: 

 

 

 Solar 

 

 

 Batteries 

 

 

 Submeters 

 

 

 Inverters and control hardware 

 

 

 NFE Role 

 NFE provides: 

 

 

 NFE Microgrid OS platform 

 

 

 Billing and settlement 

 

 

 Monitoring and remote management 

 

 

 Deployment and Operation of supported hardware 

 

 

 Revenue 

 NFE earns through: 

 

 

 Monthly Platform Fee – a fixed charge per connected customer 

 

 

 Revenue Share – a percentage of net monthly electricity sales 

 

 

 Maintenance 

 NFE maintains supported hardware such as meters, batteries, and solar systems. Costs are paid by the partner. Third‑party assets (e.g., diesel generators) are excluded unless separately contracted. 

 Partner Revenue 

 Partners earn revenue from electricity sales and reliability improvements. They may also charge additional services through the NFE Microgrid OS billing platform. 

 Key Tradeoff 

 This model requires little capital from NFE and scales faster, but NFE captures less revenue per microgrid. 

 

 Strategic Use 

 Both models can coexist: 

 

 

 

 Situation 

 Preferred Model 

 

 

 

 

 Communities lacking financing 

 NFE-Owned 

 

 

 Developers or landlords 

 NFE Partner 

 

 

 Existing estates 

 NFE Partner 

 

 

 Demonstration projects 

 NFE-Owned 

 

 

 

 NFE may ultimately operate a hybrid portfolio—owning a few strategic microgrids while enabling many partner-operated systems through the platform. 

 

 Questions for Team Feedback 

 

 

 How should we determine the monthly platform fee per customer? 

 

 

 How should we determine the appropriate revenue-share percentage for the partnership model? 

 

 

 What hardware should NFE officially support and maintain? 

 

 

 Should partners be required to use NFE‑certified hardware?