Virtual power plants (VPPs) are a way for you to share excess power stored in your solar battery with a network.
You’ll enjoy financial rewards for helping support the electricity grid, and there are benefits for the environment and community too.
1. Save even more on your energy bills
VPPs typically offer financial benefits to participants in various forms. Depending on the VPP provider, you could get:
- a discount on your energy bill
- credit on your energy bill for power shared to the VPP from your battery
- an upfront discount to reduce the cost of installing a solar battery.
How much you save will depend on which VPP program you join and how often your energy is shared from the battery into the VPP network.
Do your research to compare the options available and work out what suits your household.
2. Cleaner energy for the community
Thanks to your solar panels, you can power your home from a clean, renewable energy source: the sun. And by connecting to a VPP, you can share the excess solar power stored in your battery with your community when it’s needed. VPPs can add solar power from your battery to the grid in times of high demand. That means less reliance on gas and coal power.
It’s a smart, sustainable energy solution that makes the most of all the renewable power being generated on our rooftops.
3. Stable grid electricity
Through connecting to a VPP, solar panel owners can help the whole community enjoy a more stable power supply. VPP technology can respond to changes in supply and demand on the grid almost instantly, drawing on extra power from home batteries to smooth out fluctuations. That means fewer disruptions and a more reliable power supply during times of high demand (like on hot summer days).
Participating in a VPP may also help lower electricity costs for all consumers through reduced wholesale electricity costs, reduced ancillary service costs, and the provision of network support.
John’s story
John’s Warrandyte home is a shining example of sustainable living just 30 minutes from Melbourne’s CBD.
It's not just the bush landscape and natives you can see from John's terrace; you can also see the work of a green thumb. In his backyard stands a glasshouse storing fresh veggies, a chipper filled with fresh mulch, and chickens in a coop providing fresh eggs. Everything on John's property is fresh, repurposed or recycled.
With this sustainable lifestyle, there's no wonder that John decided to join a virtual power plant (VPP) program to share extra power via his solar battery.
“After fifteen years of rooftop solar, it was time to take it to the next level by utilising the clean energy my panels were generating that otherwise would go to waste. And why waste it?”
John's now excited to be helping the planet and most of all, his grandchildren by giving them a cleaner future.
“If you can gift your unused data from your broadband internet, why couldn't you gift your unused clean energy? If you're not going to use it, someone else should. It just made sense.”
Should you join a VPP?
Joining a VPP can be a great way to enjoy extra savings on your energy bills. You’ll also help provide clean, stable energy for everyone to benefit from. It can be a great way to contribute to a better future for the planet, the community, and your bank account.
But being part of a VPP may also limit how you optimise your savings. Make sure you understand how a program works before you sign up. Here are some things to consider:
- You will not have full control over your battery as the VPP provider can access it at any given time.
- You may no longer have the option of charging your battery from the grid at a time of the day that aligns with your off-peak energy tariffs.
- You might need to sign a contract with a certain energy retailer and pay their electricity rates or face an exit fee.
- The VPP provider accessing your battery’s energy could shorten your battery’s lifespan or impact your warranty. Check if there is a limit on the number of times they can access your battery and the amount of power they can draw each time.
Get started
To join a VPP, you’ll need to have solar panels and a VPP-ready battery. Some VPP providers can help you install a battery if you don’t have one yet. Do your research to compare the options available and the benefits on offer.
At Solar Victoria, we also offer interest-free solar battery loans of up to $8,800 for eligible Victorians to help reduce the upfront costs of installing a battery.
FAQs: Solar batteries
Questions about the Solar Homes Package, how the rebates loans work and the impact for individuals, installers and retailers.
Virtual Power Plant (VPP) pilot program
The VPP pilot program has helped Victorian households create and share power, save money on energy bills and reduce reliance on the grid.
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