Virtual power plants
A Virtual Power Plant is a network of household batteries that is managed remotely to support the electricity grid. Depending on the virtual power plant arrangement, your stored solar energy can be sold back to the grid during peak demand, and you may receive part of the revenue. Just like earning credits for exporting solar power. This means you may make money from the extra energy your battery stores.
What is a virtual power plant
A virtual power plant is a new way to manage solar electricity. Instead of storing energy in one big battery, virtual power plants virtually connect lots of smaller energy sources, like solar panels and home batteries. These systems work together to supply electricity to the grid during peak demand. Virtual power plants can help to stabilise the energy system and reduce reliance on fossil fuel.
What are their benefits
Joining a virtual power plant can offer several benefits:
- Lower energy bills: you may receive payments or credits for sharing stored energy.
- Faster return on investment: your provider may give you a part of the revenue received from providing market services using your battery. Earning money by selling excess energy may help pay off your solar and battery systems sooner.
- Support for the grid: your battery helps reduce strain during peak times.
What do I need to know before joining a virtual power plant
Virtual power plants can be a great way to save money, support the grid, and contribute to the ACT’s energy transition. But like any energy decision, it’s important to:
- read the fine print
- compare providers
- understand your rights.
Before signing up, here are some things to consider and questions to ask.
Understand how and when your battery will be used. Be sure to check for things like:
- Minimum participation periods: how long you will need to take part for before you can leave without paying a fee.
- Minimum contract terms: how long and how often your battery will be used, including during periods of peak demand and on weekends. It is also important to know if you will have access to your battery during these periods.
- Exit fees: if you want to leave a virtual power plant early, or join a different one, you may need to pay a fee.
You should find out how much control you will have over your battery. Some virtual power plants may place grid needs over your household usage. This means you may not be able to use your stored solar energy when you need it.
Just like electricity offers, there are many different virtual power plant plans. Some providers offer a rebate on electricity plans while others provide revenue on services provided or a zero-electricity bill for the period of the contract terms.
It is important to find a provider who offers benefits that meet your requirements and that you are satisfied with.
Just like electricity retailers, there are many different virtual power plant providers. You should shop around to find the best deal for you. You can also look at independent reviews to see what others are saying.
Look for providers who offer:
- Clear pricing models: a provider should let you know how much you’ll earn for energy exported and any fees involved. Check if the virtual power plant offer meets your expectations.
- Performance data: access to historical performance and reliability metrics.
- No hidden charges: all costs should be made clear upfront.
Check how the provider handles:
- Onboarding and setup: Is the process smooth and well-supported?
- Ongoing communication: Do they provide regular updates and performance reports?
- Issue resolution: Are there clear channels for complaints or technical support?
Ensure the provider:
- Follows Australian privacy laws.
- Clearly explains how your energy data will be used.
- Offers user control over battery access and energy usage priorities.
Some virtual power plants may only work with specific brands or models of batteries.
Make sure your battery system is compatible with the virtual power plant platform you would like to join.
Consumer protections
When joining a virtual power plant, Australian consumers are protected by privacy laws, consumer law, and energy market regulations. These are designed to ensure your rights are upheld and your data and energy assets are used responsibly.
Virtual power plants use real-time data from your solar and battery systems. Under Australian privacy laws you have a right to know:
- What data is being collected.
- Who has access to it.
- How it’s being used to support the virtual power plant.
Virtual power plant providers must also comply with Australian consumer laws, which means they must:
- Not make misleading claims about savings or performance.
- Have clear contract terms, including pricing, exit conditions, and service obligations.
- Have cooling-off periods.
- Fix problems and faults. If the service doesn’t perform as promised, you may be entitled to a refund or compensation.
Why are virtual power plants important
The ACT already uses 100% renewable electricity. Now, we’re working towards transitioning away from fossil fuels by 2045. As our city electrifies, virtual power plants can help by:
- Keeping the electricity grid stable by balancing electricity supply with demand.
- Allowing households to save money by using and sharing their own energy efficiently.
- Allowing households to be involved in the electrification of the ACT and decarbonisation of the national electricity grid.
- Supporting Australia’s energy transition as more electricity from renewable sources enter the grid.
Acknowledgement of Country
We acknowledge the Ngunnawal people as traditional custodians of the ACT and recognise any other people or families with connection to the lands of the ACT and region. We acknowledge and respect their continuing culture and the contribution they make to the life of this city and this region.