3 myths busted about Virtual Power Plants
If you've got a solar battery, you might have heard some myths about Virtual Power Plants. We take a closer look and bust 'em!
Sponsored by AGL. AGL's VPP helps you unlock easy earnings. If you're eligible, it's one of the simplest ways to support the energy grid and get rewarded for doing it.
Australia's power supply relies on a massive network of power plants, power lines and other high-tech equipment, spread out across the country.
Solar panels and solar batteries are often seen as separate from this grid. But if you've invested in them yourself, you can actually feed back into the wider grid and earn rewards as bill credits for doing so.
This can be done by joining a Virtual Power Plant (VPP). They're a decentralised collection of solar batteries, linked together by a computer and overseen by an energy company.
You can find out more about the nuts and bolts of how they work on the Clean Energy Regulator website.
Given how new VPPs are, there are some misconceptions about how a VPP works and who it benefits. So today, we're taking a closer look.
Myth #1: "VPPs only benefit the energy company, not me."
One of the biggest misconceptions about VPPs is that they only benefit the energy company.
In reality, a VPP is designed to help you get more value from your home battery — rewarding you for the role it plays in supporting the grid.
When your battery helps out during periods of high demand, you can earn event-based bill credits, on top of your quarterly and joining credits, plus other rewards for taking part.
And if using your battery means you need to buy a little extra energy from the grid, AGL has you covered. To make sure you come out ahead, you'll receive event-based credits worth $1 for every kWh your battery charges from and discharges to the grid during VPP events.
Joining AGL's VPP also unlocks eligibility for the AGL Battery Rewards Plan. This plan lets you earn a peak evening feed-in tariff of over 25c/kWh for exports to the grid between 5pm–9pm.
Myth #2: "The VPP will drain my battery and leave me without power."
Now, this is an understandable concern. After all, you buy solar panels and solar batteries with the idea of sourcing your own power, and now you're feeding it back into the grid?
First thing's first. The VPP is there to provide backup for the main grid, so you may not be required to provide energy from your battery all the time.
Power usage can be tracked via the AGL app, so you can see what's used and when.
Additionally, AGL's VPP program carries a backup power commitment. That means that you'll always have power left in your battery. This varies by battery brand. For Tesla, AGL's backup power guarantee is 20%. If you have another battery, you can go to the battery's settings and choose how much power the VPP leaves.
So if you do need to use power yourself, you'll have it there ready to go.
Myth #3: "It will degrade my battery faster"
Solar panels and battery set-ups aren't cheap. So it makes sense to avoid any activities that might cause it to degrade or damage.
But being part of a VPP doesn't damage your solar battery. AGL also takes steps to ensure that there's a 250kWh annual limit in place – so it won't charge from or discharge more than this amount during a 12-month period.
That helps protect the integrity of your battery. You can also find out more about how the setup process works in the video below.
Conclusion
If you think that a VPP might be a good fit for you, you can get in touch with AGL. Just keep in mind that there are four things you'll need in place first, including:
- A reliable internet connection
- A smart electricity meter (AGL can help you get set up with one)
- An AGL electricity plan (or be willing to swap over)
- A compatible solar panel and battery system
The full list of eligibility criteria can be found here: Virtual Power Plant (VPP) - Solar and Batteries - AGL
When you're part of the right VPP, you can help power the wider grid, save money and protect the longevity of your solar system.
Visit the Battery Rewards Page to learn more and sign-up today.
Sponsored by AGL. AGL's VPP helps you unlock easy earnings. If you're eligible, it's one of the simplest ways to support the energy grid and get rewarded for doing it.
Note: A basic plan information document containing key details of this plan is available on request.
Image: @halfpoint via Canva.com