We know that the energy landscape of Australia is evolving, and VPPs are expected to transform the traditional means of energy supply which are heavily fossil fuel based. So, by this time, you may have heard of VPPs, but is it right for you? Will it make savings for homeowners? Here’s everything you need to know about VPPs and the solar savings that comes with them.
What Are Virtual Power Plants?
VPP or a virtual power plant is a network of home solar battery systems that forms a large power source to provide on-demand power to electricity grids when in need. In simple words, you are making the grid more efficient and stable during peak periods by providing it with the excess energy that your solar battery has saved. And in return, you get credits.
It works on the concept of energy microgeneration, wherein a household or building can produce, store, and share the energy generated through renewable sources like solar power systems. Your energy retailer or VPP provider will control your VPP to draw energy from your battery.
How Much Savings Can You Make?
You know now when your solar battery provides power to the grid during peak demand periods, you will receive a premium rate payment in return. (Note that having a solar battery system connected to your solar panels itself gives you savings on your electricity bill).
By being part of the VPP, in addition to your regular feed-in tariff, you get an extra payment for the amount of power the retailer draws from your solar battery system. They pay you every time they access energy from your battery. Some retailers offer a fixed payment rate per month.
The payments can be anywhere between $0.37/kWh and $7.00/kWh. Therefore, you make two solar earnings: one from your regular feed-in tariff and another credit through VPP. However, how much you can make depends on your electricity retailer or VPP provider. Usually, VPP providers offer a base consumer savings of $100 to $200 per year. The rates also vary depending on the size of your solar battery system and the number of times they draw energy from it.
There are also other schemes that benefit homeowners. Some retailers offer discounted electricity rates for accessing your solar battery power system. These reduced rates, together with an efficient use of solar energy from your solar panel systems, can help you make significant savings on your electricity bills. You must choose a plan that is right for you, meaning the one that offers solar savings for you.
How To Apply for a VPP?
Before applying for a VPP, firstly, you must consider certain things:
- Your location – you must check if VPP is available for your postcode
- The solar battery system – you must have a compatible solar battery (typically, an AlphaESS battery)
- Your electricity retailer- check with your electricity retailer
If all the above conditions tick right, you can easily apply for a VPP. By joining a VPP network, you are not only supporting the grid in achieving optimum efficiency but helping Australia build a modern electricity grid through renewable sources for a sustainable future.
Looking to go solar at your Port Macquarie home or business? The contact our team at Bila Energy for an assessment and consultation.
