This blog post was accurate at the time of publishing. However, programs, policies and rebates may have changed since then. We recommend checking our website or contacting us directly for the most current information on 1300 430 917.
The energy world is changing fast and VPPs are at the heart of this revolution. In this blog post, we’ll explain exactly what you need to get started. We’ll also show how MAC Trade Services can help you participate in this exciting movement and make the most of government incentives to get cash back in your pocket just for joining an approved VPP provider.
What is a Virtual Power Plant (VPP)?
A Virtual Power Plant (VPP) is a system that connects and manages multiple small energy sources, like home solar panels and batteries, to function together as a single power plant. This coordination allows these individual systems to collectively supply electricity to the grid or adjust their energy usage in response to demand.
For example, if many homes have solar panels and battery storage, a VPP can manage these systems to store excess energy when demand is low and release it back to the grid during peak times. This helps balance the overall electricity supply, reduces strain on the grid, and can lead to cost savings for participants.
In simple terms, a VPP transforms a collection of individual energy systems into a unified, efficient power plant that supports the broader electricity network.
Click here to learn more about how a VPP works https://www.instagram.com/reel/DCkUcYGOaU8/?igsh=ajF6ZXU5dHZqanh2
Benefits of Joining a VPP
As well as being the solution to many household energy problems listed in this blog post there are often government or provider incentives for VPP participants for joining an approved VPP provider. States offer cash incentive rebates and programs can offer things like special electricity rates, sign-up credits, or battery subsidies.
Check what is currently available to South Australia households and businesses here and in New South Wales here.
What Do You Need to Get Started with a VPP?
By now you might be thinking, “This sounds great. So what do I need to join a VPP?” The good news is that getting set up is straightforward for most homeowners. Here’s what you’ll typically need to participate in a Virtual Power Plant:
- Home Battery System (VPP-Ready): An eligible home battery is essential for VPP participation as this is where excess solar energy is stored. The battery should be VPP-ready, meaning it can be integrated into a VPP platform.
- Solar Panels: A rooftop solar PV system to generate electricity. While technically a battery alone could participate by charging from the grid, having solar panels is what makes the whole setup economical and sustainable. Your solar panels will capture free energy from the sun to power your home and charge your battery.
- Compatible Inverter & Smart Controller: A solar inverter (or hybrid inverter for solar + battery) that is compatible with VPP operation. Many modern inverters are “smart” and can communicate with VPP systems. In some cases, an additional device or software is used to link your system to the VPP cloud. Essentially, your equipment needs to talk to the VPP operator so they can send commands to charge/discharge when needed.
- Internet Connection / Smart Meter: Since VPPs are digitally coordinated, having a reliable internet connection or mobile signal for the battery system is important so it can exchange data with the VPP platform. Additionally, a smart meter is used to measure energy import/export in real time. This ensures you get credited accurately for any energy you contribute to the grid.
- A VPP Participation Agreement: Finally, you’ll need to sign up with a VPP program or energy retailer that offers VPP plans. This is usually a simple process of agreeing to let the VPP use your battery within set limits.
Tip: If you already have a solar and battery system for VPP use, you’re one step away, just find a suitable VPP program and sign up. If you don’t have the hardware yet, consider reaching out to a reputable installer who can set you up with a solar and battery system for VPP participation.
The future of energy is here. By participating in a Virtual Power Plant, you can take control of your energy and save money. If you’ve connected your battery to an approved VPP provider, you could be eligible for a cash back rebate. You can apply here if you are in South Australia and here if you are in NSW. It’s quick and easy – just head to our website and complete the application form to get started. Let MAC Trade Services take care of the rest.
