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So, What Is A Virtual Power Plants (VPPs)?

So, What Is A Virtual Power Plants (VPPs)?


VPP stands for Virtual Power Plants, and if you have solar panels and a battery then you may be eligible to join a VPP program. But, before we dive in, it’s important to understand the challenge of unpredictable sunny days. Unlike flicking a switch, sunlight availability varies, constantly straining the electricity grid. It is for this reason that VPPs were created.

What is a Virtual Power Plant?

A VPP network is a smart and compact power grid formed by home solar battery units and typically managed by AI software. It harnesses stored energy to offer extra support to the grid during peak demand periods.

The process involves tapping into solar energy stored in home batteries and redirecting it to the grid when necessary, managed remotely by an electricity provider or distributor that owns the VPP network. Using various technologies, they forecast demand and regulate energy flow accordingly.

The core concept of a VPP is to alleviate grid strain, enhancing stability and efficiency while delivering clean energy on demand. Functioning akin to a traditional power station, it draws from existing solar and battery storage systems without the need for additional infrastructure. Homeowners collaborate as a collective, using their combined resources to manage the grid, effectively transforming their residences into a decentralised power plant.

Are you eligible to join a VPP?

The eligibility criteria for VPP programs may vary, but generally, having solar panels and a solar battery is a prerequisite. Upon joining a VPP program, battery owners link their batteries to a central management system. This enables the aggregated energy from all participants to be distributed to the grid during high-demand periods or used within the community during peak usage hours.

It’s important to verify the specific requirements of the chosen VPP, as some may necessitate installing a solar battery from a particular provider and agreeing to their electricity plan. Since you can’t participate in multiple VPPs simultaneously, conducting thorough research is advisable to find the one that best fits your requirements.

Virtual Power Plants are surging in popularity in Australia, not just to save money on electricity bills but also to work towards a more sustainable future. It’s a big decision, though, so make sure you fully understand what you’re signing up for. As you are giving someone else control of your solar battery it means that it may limit your own access to your solar energy at times. You’ll also be locked into a contract so should you change your mind you might have to stay in it until your contract has ended. For some, this might not feel worth it. However, there are a great deal of positives, especially as you will be contributing to a more stable grid, and you will save on your next bill. If you’re interested in learning more about what VPP might suit you, simply contact your electricity provider if this is something they do and then compare them to their competitors. You want your solar panels to not only work for you but also help the environment, so make sure you get the full list of terms and conditions when enquiring. Ultimately, this is a decision not to be taken lightly.

Your Solar & Electrical Experts

Established in 2020, Tropical Solar and Electrical Services is a locally owned and operated company servicing homes and businesses throughout Mackay and surrounding areas including MoranbahSarinaProserpine and Rockhampton. Whether it’s power on the roof or within the property, we’ll ensure it’s running as it should. Get in touch with our electrical experts today for a free quote. We’re available 24/7 for your convenience.

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