Direct Marketing

In direct marketing, renewable energy is sold on the electricity market via a direct marketer, who handles trading, forecasting and regulatory tasks. Learn how solutions like XENON help both plant operators and direct marketers optimize energy use, reduce costs and tap into market opportunities, such as flexibility trading.

What is direct marketing for renewable energy?

Direct marketing refers to the participation of the power plant in electricity markets such as the day-ahead or intraday market, rather than receiving a feed-in tariff subsidy for all injected electricity. This is typically done at the European Power Exchanges like EEX, EPEX, Nordpool or EXAA. On top of participating in the markets, renewable energy power plants that participate in the direct marketing (Direktvermarktung in German) are entitled to an on-top subsidy called the Market Premium (Marktprämiemodell in German). This subsidy is a one-sided “Contract for Difference" contract that ensures that the power plant always receives the minimum feed-in tariff amount on a monthly basis. Overall, the aim of direct marketing is to integrate renewable energies into the free market in order to ensure competitiveness and flexibility in the energy system. 

How does direct marketing work?

Under the Renewable Energy Act (Erneuerbare-Energien-Gesetz, EEG), operators of renewable energy plants are generally entitled to financial support for 20 years, starting from the date the plant is commissioned. The type and conditions of support depend on the plant’s size and commissioning date. Small-scale PV systems up to 100 kW usually receive a fixed feed-in tariff, while larger PV systems must participate in direct marketing via the market premium model. PV systems above 750 kW or 1 MW are typically subject to tendering. Special rules may apply to charging parks with integrated PV systems, depending on their configuration and degree of self-consumption.

With direct marketing, system operators generally do not sell their electricity on the market themselves. Instead, they work together with a direct marketer, a specialized service provider who handles the entire marketing process. The direct marketer forecasts the expected generation of the renewable energy plant, handles the sale of the electricity on the electricity exchange (for example, on the power exchange platform EPEX for spot or EEX for futures), manages the balancing energy requirements and ensures that all regulatory and market-related obligations are met. Thus, the direct marketer acts as the Balancing Responsible Party (BPR) to fulfill the balancing requirements.

For plants that are still within the 20-year EEG support period, the direct marketer handles the sale of electricity on the market, while the market premium is usually paid directly to the plant operator by the distribution system operator (DSO). This ensures that the operator receives the guaranteed minimum revenue defined under the EEG. In some cases, particularly in simplified service models, the direct marketer may receive both the market revenue and the market premium on behalf of the plant operator and then forward the total amount (minus a service fee) as a bundled payment. This way, renewable energy producers can access the electricity market without having to deal with trading or regulatory complexities themselves.

Direct marketing models in Germany 

In direct marketing, various models are available for selling renewable energy. Let’s take a look at the most common approaches used in Germany:

Market premium model

As mentioned before, the market premium model is the standard and most widely used model in Germany for large powerplants. Under it, producers can sell their green energy directly on the spot market (such as the EPEX spot). This allows renewable energies to compete on equal terms with conventionally generated electricity, with the price being determined by supply and demand in real time. To protect the renewable energy producers from market price fluctuations, they receive a market premium which is paid on top of the spot market price. This premium closes the gap if the solar market value falls below the guaranteed reference price set by the EEG’s defined feed-in tariff. It also compensates producers from additional operational expenses such as accurate generation forecasts, managing balancing energy requirements and taking market risks related to grid stability and trading. As a result, producers of renewable energy are guaranteed a minimum revenue which is equivalent to what they would receive under a traditional fixed feed-in tariff system and ensures financial stability while encouraging market participation. 

However, the market premium model can only be used during the 20-year EEG funding period, but can (and most of them do) stay on direct marketing. 

Regional direct marketing

In regional direct marketing, the electricity from the renewable plant is sold directly to local consumers or companies rather than the national electricity exchange. Its goal is to offer a local form of renewable energy that appeals to customers in the immediate area of the energy source like neighborhoods, nearby towns or regional businesses. However, this model is typically not eligible for EEG market premium as the electricity does not go through the standard market process required for the EEG framework. 

Due to its administrative and economic complexity it’s a rather rare choice for plant operators, as it requires contracts with many different companies.

Post-EEG direct marketing/Merchant PV

As many renewable installations built in the early 2000s are now, or will soon be, reaching the end of their 20-year EEG funding period, alternative marketing models are becoming increasingly important. After the end of the EEG support, renewable energy plants must compete directly on the free electricity market without a guaranteed income. This phase is often referred to as Merchant PV or Post-EEG direct marketing. While large-scale plants may enter into long-term power purchase agreements (PPAs) with utilities, corporations or energy traders, small-scale PV systems typically continue through direct marketing channels. These plants can be aggregated via virtual power plants and marketed on the spot market (mainly intraday) allowing flexible and decentralized participation in the energy market beyond EEG support.

How gridX enables intelligent direct marketing

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Direct marketing is more than just about selling electricity on the exchange. As negative electricity prices become more frequent and flexibility becomes increasingly valuable, the challenge is determining when electricity should be consumed, stored or exported.

This is where Home Energy Management Systems (HEMS) come into play. By intelligently orchestrating distributed energy resources such as photovoltaic systems, batteries, EV chargers and heat pumps, a HEMS transforms direct marketing from passive electricity sales into active energy optimization.

Rather than immediately exporting surplus solar energy, a HEMS can:

• charge home batteries when electricity prices are low
• optimize EV charging and heat pump operation
• maximize self-consumption
• reduce electricity imports during expensive periods
• export electricity when market conditions are most favorable

As smart meter infrastructure, dynamic tariffs and flexibility markets continue to expand, HEMS is becoming the intelligence layer connecting households with electricity markets.

gridX enables OEMs, utilities, installers and direct marketers to bring these capabilities to the mass market through its interoperable Home Energy Management System. Instead of building proprietary end-to-end solutions, partners can leverage gridX's technology to launch intelligent, white-label energy services under their own brand.

Through its partnership with NOMOS, gridX combines intelligent Home Energy Management with electricity market access, enabling partners to offer a complete white-label direct marketing solution without developing their own trading infrastructure. Together, the solution combines:

• intelligent Home Energy Management
• dynamic tariff optimization and §14a EnWG compliance
• flexibility marketing
• system- and pool-level optimization
• seamless onboarding into direct marketing
• enterprise-grade reliability with 99.95% system uptime and strict SLAs

Built on an API-first architecture, gridX also integrates seamlessly with direct marketers, energy suppliers, flexibility providers and third-party platforms, creating an open ecosystem that is ready for the next generation of energy services.

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Expert insights and future outlook for direct marketing models 

Direct marketing is entering a new phase. What began as a mechanism for integrating renewable energy into electricity markets is becoming a foundation for residential flexibility.

As more PV systems reach the end of their EEG funding period and periods of negative electricity prices become more frequent, simply exporting surplus electricity is no longer enough. The value of renewable energy increasingly depends on when electricity is consumed, stored or traded.

This shift is accelerating the adoption of Home Energy Management Systems (HEMS), which optimize distributed energy resources based on market prices, grid signals and household demand. Combined with smart meters, dynamic tariffs and access to electricity markets, HEMS enables households to actively participate in a more flexible and resilient energy system.

At the same time, direct marketing is becoming more accessible. Through interoperable and white-label solutions, utilities, OEMs and energy service providers can now offer intelligent energy services without developing their own electricity trading platforms, helping bring direct marketing from an innovative product to the mass market.

As Irene Guerra Gil, Senior Energy Market Expert at gridX,

"We're moving from a world where households simply exported excess solar energy into the grid to one where they actively respond to market and grid signals. Direct marketing is becoming the gateway to a more flexible, decentralized energy system."

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Frequently asked questions about direct marketing

1. Can OEMs or installers offer direct marketing under their own brand?

Yes. Through white-label solutions, OEMs, installers and energy service providers can offer direct marketing as part of their own customer experience without developing an electricity trading platform themselves.

For example, gridX's partnership with NOMOS combines Home Energy Management with electricity market access, enabling partners to launch branded direct marketing services while maintaining ownership of the customer relationship.

2. Why is a Home Energy Management System (HEMS) important for direct marketing?

Direct marketing is no longer just about selling surplus electricity. It is about determining the optimal time to consume, store or export energy based on market prices, weather forecasts and grid conditions.

A Home Energy Management System coordinates photovoltaic systems, batteries, EV chargers and heat pumps to maximize the value of every kilowatt-hour while improving self-consumption and reducing electricity costs.

3. Can small residential PV systems participate in direct marketing?

Increasingly, yes.

As regulatory frameworks evolve and more residential systems become connected through smart meters and Home Energy Management Systems, smaller distributed energy resources can be aggregated by direct marketers or virtual power plants to participate in electricity markets and flexibility services.

4. What is the difference between direct marketing and flexibility marketing?

Direct marketing focuses on selling electricity generated by renewable energy systems on wholesale electricity markets.

Flexibility marketing goes a step further by monetizing the ability to shift electricity consumption, storage or generation in response to market prices or grid signals. This allows assets such as batteries, EV chargers and heat pumps to generate additional value beyond electricity production alone.

5. How can utilities and energy suppliers benefit from offering direct marketing?

Direct marketing enables utilities and energy suppliers to expand their energy services portfolio while strengthening customer relationships.

By combining electricity supply, Home Energy Management and market participation, companies can create new revenue opportunities, improve customer retention and support a more flexible electricity system.

6. How long does it take to launch a direct marketing offering?

The timeline depends on the business model and system integrations.

With a white-label solution, companies can significantly reduce implementation effort by leveraging an existing Home Energy Management platform and integrated electricity market services instead of developing their own infrastructure from scratch.

7. What role do smart meters play in direct marketing?

Smart meters provide the reliable consumption and generation data required for market participation, regulatory compliance and automated optimization.

Combined with a Home Energy Management System, they enable intelligent control of distributed energy resources and support dynamic tariffs, flexibility services and direct marketing.

8. Why should companies choose an interoperable HEMS for direct marketing?

Interoperability allows companies to integrate a wide range of distributed energy resources, electricity suppliers and market platforms without being locked into a single ecosystem.

An open, API-first Home Energy Management System gives OEMs, utilities and installers the flexibility to launch white-label energy services, connect with direct marketers and adapt to future market and regulatory developments.

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