What is a Virtual Power Plant (VPP)?

A Virtual Power Plant (VPP) is a system that integrates various energy resources, typically involving homeowners who generate electricity through a Hybrid Solar system (Solar + Battery). In a VPP arrangement, homeowners sell excess energy generated by their solar panels and stored in their batteries back to the grid. This transaction is usually made through an agreement with an energy retailer.

Energy retailers, such as Ergon Energy or AGL, offer VPP agreements to their customers. These agreements often provide more lucrative terms compared to standard feed-in tariffs, sometimes offering up to four times the value of typical sell-back-to-the-grid credits.

How Does a VPP Work?

  1. Energy Generation: Homeowners generate electricity using their Hybrid Solar systems.
  2. Energy Storage: Excess energy is stored in home batteries.
  3. Energy Sale: When the grid needs additional power, this stored energy is sold back to the grid through the VPP agreement.
  4. Compensation: Homeowners receive payment based on the terms of the VPP agreement, which is generally more favourable than standard feed-in tariffs.

Benefits of a VPP

  • Increased Earnings: VPP agreements can significantly increase the financial returns from your solar investment.
  • Grid Support: By participating in a VPP, homeowners help stabilise the grid by providing additional power during peak demand times.
  • Energy Independence: VPP participants gain greater control over their energy usage and storage, enhancing their energy independence.

Get Started with a VPP

To learn more about VPPs and how they can benefit you, contact AusPac Solar. Our team can design a customised system tailored to your energy usage patterns and provide an estimate of potential earnings from feeding excess energy back into the grid.

Take advantage of the financial and environmental benefits of a Virtual Power Plant by partnering with AusPac Solar today.