Plico’s Virtual Power Plant (VPP) is transforming the way Australians think about energy.
By creating a network of connected solar and battery systems, the Plico VPP allows members to benefit financially from the energy market.
By adding more stored solar energy to the grid when it's needed most, the VPP also helps maintain grid stability and keeps electricity costs down for everyone.
However, like any innovative technology, the VPP has sparked curiosity and raised questions, particularly since joining a VPP and being VPP-ready is included in the eligibility criteria for battery rebates.
Plico is the only independent VPP provider approved for the WA rebate, alongside Synergy and Horizon Power.
That means that if you’re a Synergy account holder, you can choose between Plico and Synergy’s VPP.
But what does it mean to be connected to a VPP, and what are the benefits of joining a VPP?
Whether you are new to VPPs or already familiar with how they work, we’ve outlined the key features, clarified some of the main misconceptions, and explained why joining the Plico VPP is one of the most financially savvy decisions you can make.
What are the benefits of being part of a VPP?
Joining Plico’s Virtual Power Plant comes with an array of benefits that extend beyond your household. Here are some of the key advantages:
Financial rewards
Joining Plico’s VPP allows you to earn additional money for your energy. Any energy the VPP utilises earns you three times what you would pay for the same amount of energy.
You make a profit without having to lift a finger!
Each time there is a VPP event, Plico will pay you 3x your energy costs for any energy exported from your battery to the grid.
That’s a minimum of 94 cents a kWh (or unit), the highest VPP event payment in the WA market! So you know you’re always better off financially when you’re part of Plico’s VPP.
But the benefits don’t stop there…
Contribution to grid stability
Your participation in the VPP supports the grid by strategically supplying energy during peak times or reducing energy supply when there is surplus.
This supports a stable and reliable grid, helping to prevent blackouts and grid emergencies.
Keep electricity affordable
A VPP is like a power plant—although in this case, it is a clean energy one.
By using infrastructure that already exists and energy that is produced every day from rooftops across the grid, there is less need for additional, costly energy infrastructure to meet electricity demand and manage fluctuations in supply.
When you help keep the existing grid network stable, you’re helping keep electricity reliable for everyone.
Environmental impact
VPPs help put more clean, renewable energy into the grid.
By minimising dependence on fossil fuels like coal and gas, you actively contribute to reducing carbon emissions from the energy network, as well as your household’s carbon footprint.
And you’re helping other households use more clean energy, too!
Community empowerment
Being part of a VPP means joining a network of like-minded individuals committed to renewable energy.
Together, you create a positive impact on all grid users and demonstrate the power of collective action in shaping the future of energy.
These combined benefits make joining a Virtual Power Plant a wise financial decision, allowing you to make a meaningful impact on the transition to clean energy.
Which households might not be suitable to join a VPP?
While joining a Virtual Power Plant (VPP) offers benefits for the vast majority of households, it’s essential to consider a few potential limitations that might affect your household’s energy needs.
Households that rely on electricity for critical medical or mobility devices may need to evaluate whether a VPP setup is suitable.
Although your energy is only used occasionally to prevent grid emergencies, it’s essential to consider your medical needs first.
When considering this, it’s also worth noting that battery backup systems should not be relied upon to power medical devices during power outages.
VPPs require a solid and ongoing internet connection to operate. If your household does not have access to a stable internet service, it may not be suitable for participation in a VPP.
These considerations are minimal and manageable for most households. Joining a VPP is designed to enhance, not hinder, your energy independence and savings, making it an excellent option for those seeking a smarter, cleaner energy solution.
Will I get placed on a different electricity plan or tariff?
No, Plico cannot change which electricity plan your household is on, and subsequently, what tariff you pay for electricity. Your electricity retailer makes changes to your electricity tariff.
Being part of the VPP helps you maximise your energy savings, regardless of your current tariff.
The energy generated and stored in your solar battery is used efficiently to offset your energy usage, reducing your reliance on the grid.
If you decide to switch plans, Plico will pay you based on the new tariff, ensuring your system continues to deliver financial benefits. We’re here to make clean energy affordable, not complicated.
Do other solar battery providers offer a VPP?
Plico is the only one-stop shop for solar, battery, and VPP in WA. We are also the only independent VPP approved for the WA Battery Rebate and have been rewarding our members for their energy savings since 2022.
To access the WA rebate, batteries will be connected to an approved VPP.
There is currently no other solar battery provider in WA that has a VPP as part of their offering.
If you have a solar battery through a different provider, you can join our VPP with an eligible system. Find out how you can join WA’s largest network of solar batteries today.
Will my battery be constantly drained?
No - your battery will only be utilised as required to prevent grid emergencies.
The VPP will not impact your ongoing energy security. Your battery may be discharged occasionally to support the grid, typically during the summer. For example, in summer 2024-2025, the Plico VPP was engaged in two fleet-wide VPP events. It’s important to note that the number of VPP events is determined by the needs of the grid. Heatwave conditions can trigger more frequent VPP events. When you’re part of the Plico VPP, you are financially compensated for any energy your battery contributes during a VPP event.
You also have the flexibility to select your battery’s minimum State of Charge (SoC) so you have control over how much energy is retained in your battery and how much the VPP can utilise at any time.
Plico’s innovative technology ensures your battery maintains optimal levels of charge to protect its longevity, and importantly, you will always have a supply of electricity outside of blackouts and outages.
Will a VPP void my battery warranty?
No – VPPs don’t make your battery or inverter system operate in ways they were not designed to.
The commands sent by a VPP to a battery system work in the same way that battery schedules do.
Battery owners can set their system up to charge from the grid at particular times, hold charge or export to the home or grid, usually to make the most of time-of-use tariffs.
Just like a schedule, a VPP command works within the limits of the battery system. For example, the VPP command might be to export energy directly to the grid for two hours.
The amount of energy that is exported cannot exceed the size of the inverter or what is available in the battery.
The amount of energy discharged from the battery won't exceed the minimum State of Charge (SoC), ensuring that battery health and lifespan is maintained.
Every battery also has an in-built Energy Management System (EMS), that ensures it performs optimally and safely at all times – and this includes during VPP events.
Because VPPs operate within the existing limits of a battery system and utilise the in-built Energy Management System, there is no impact on the battery warranty.
Will a VPP reduce the lifespan of my battery?
No – A Plico VPP event uses a single complete battery cycle, which most batteries cycle through each day, regardless of VPP events.
Let’s break this down a little.
A Plico VPP event will charge and store batteries early in the afternoon before discharging to the grid later in the evening when the grid needs more support.
During this time, the battery discharges to the home as a priority and any excess goes to the grid.
This means that the battery will reach its minimum State of Charge sooner in the day, and the household will draw energy from the grid once the battery has been fully discharged (and solar panels have stopped producing).
Note that Plico members receive a minimum of 97c/kWh for the energy exported from the battery to the grid and later pay around 32c/kWh (Synergy A1 tariff) for energy that would otherwise have come from the battery.
During normal operation, the battery will behave in much the same way. It will charge from solar panels and then stay charged until it’s required later in the day.
Once the solar panels begin to reduce production in the evening and more energy is needed in the home, the battery will begin to discharge.
Depending on energy consumption, size of the battery and inverter, the battery could discharge over a period of two, three, four hours, or last all night if no high energy-use appliances are being used (like an A/C ).
During summer, most Plico batteries go through one full charge and discharge cycle.
A regular charge and discharge cycle is beneficial in protecting the health and longevity of the battery.
Is my data safe?
Yes - keeping your data and personal information safe is as important to us as it is to you.
The Virtual Power Plant operates on a secure platform that prioritises the confidentiality and protection of your information.
Plico uses advanced encryption technologies and strict privacy policies to safeguard your data from unauthorised access.
Additionally, any data shared for operational purposes is anonymised to protect your personal information.
Our VPP platform's only identifier is your NMI, or National Meter Identifier and suburb.
Transparency is at the core of Plico’s operations, and we are committed to ensuring your data remains private.
Can Plico take energy whenever it wants?
No - Plico’s VPP operates in a highly controlled and transparent manner.
The energy shared from your system is carefully managed to ensure minimum disruption to your home’s needs.
Plico cannot arbitrarily take energy from your battery; energy is dispatched during pre-arranged VPP events in response to grid requirements and to prevent blackouts.
These events are instigated to prevent grid emergencies as directed by the market operator or network retailer.
Plico does not decide when VPP events occur outside of VPP tests. VPP events are planned to benefit the grid and you as a member, ensuring you’re compensated for your energy.
Will I receive financial rewards after signing up?
Yes - Financial rewards are a key benefit of joining the VPP.
Through your participation, you earn money for any energy you contribute during VPP events.
Any energy the VPP utilises earns you three times what you would pay for the same amount. That’s three times your electricity tariff, all with zero effort on your part!
For example, most households connected to the WA main grid pay 32c a unit for energy, and the VPP pays them 97c a unit. So you know you’ll always be ahead when you’re part of the VPP!
With Plico’s transparent payment model, you’ll always see the value of your membership, not just in savings but in VPP rewards.
Can I opt out of the VPP?
Yes - We understand that circumstances can change, which is why Plico offers flexibility.
If you have a VPP-only contract with us, you can cancel at any time. There may be an opt-out fee payable. If you are a Plico member on a finance plan, you have the option to pay off your system and opt out of the VPP.
And should you wish to opt back in, the door is always open!
To access the WA Battery Rebate, your system will be connected to an approved VPP like Plico’s.
Do I receive a discount on my Plico system when I join the VPP?
Yes – we offer all customers a significant discount on their Plico system when they join our VPP. This discount is provided on top of the VPP rewards you can earn by being part of the VPP. We also provide ongoing support when you join our VPP, so you can rest assured we’re invested in your system’s performance.
Do I need to take any action during a VPP event?
No - No action is required on your part during a VPP event.
Plico’s innovative system operates autonomously, sending energy from your battery to the grid when it’s needed most, or drawing energy from the grid when there's an excess of energy supply.
As long as your system is connected to the internet, it can be activated during VPP events and earn you rewards for your energy.
If you’re curious to know how your system is contributing to the VPP, you can choose to monitor its performance via Plico's user-friendly platform (for Plico systems) and sign up for SMS notifications, so you know when an event is happening.
Rest assured, each event is managed seamlessly to minimise impact on your daily life, freeing you up to enjoy the benefits of your battery.
Will I be informed about VPP events?
Yes - You can opt in to receive SMS notifications each time a VPP event is held.
VPP events happen seamlessly, requiring no action from you unless you wish to monitor your system’s involvement.
We also regularly communicate with our members to explain how the VPP works and the impact our community is having.
We believe informed members are happy members, and we’re committed to keeping you in the loop every step of the way.
Do VPP events happen regularly?
No - VPP events are triggered to prevent grid emergencies.
The goal is stabilising the energy network during peak or minimum demand periods or supporting grid frequency in vulnerable localised networks.
These events are rare enough that they won’t disrupt your daily routine, but impactful enough to make a difference for the grid and generate rewards for you.
When do VPP events occur?
Specific grid conditions trigger VPP events, and the VPP responds to balance supply and demand.
They typically occur when the grid is most strained; when demand exceeds supply on hot summer afternoons, and when supply exceeds demand during mild sunny days.
We call these scenarios Peak Demand and Minimum Demand.
Peak Demand
During periods of peak electricity demand, such as hot summer evenings when air conditioners are running or during widespread energy consumption spikes, VPP events are activated to inject stored energy into the grid.
This reduces strain on power generation facilities and stabilises the network, benefiting the community and your wallet through rewards.
Minimum Demand
On the flip side, during periods of low electricity demand, such as the middle of the day when solar panel systems export energy to the grid, VPPs can absorb excess energy from the grid.
This prevents overloading and maintains a balanced system.
Grid frequency stabilisation
Occasionally, fluctuations in grid frequency occur due to imbalances between energy supply and demand.
VPP events help to supply or consume energy in real time, stabilising frequency and maintaining the reliability of the power network.
These strategically timed events are designed to have minimal impact on your daily life while providing vital support to the energy network and generating financial rewards for you.
While the Plico VPP does not currently support grid frequency, it could be utilised for this service in future.
What does VPP-ready or VPP-capable mean?
Being VPP-ready, or VPP-capable, means a battery system is capable of being part of a VPP.
This capability, or readiness, requires several critical elements: a reliable internet connection, appropriately configured hardware that can be remotely controlled and send/receive data and a solid connection to the grid network.
These factors ensure your system can communicate effectively and respond to grid conditions in real time.
VPP-readiness is included in the eligibility criteria for batteries under the National Battery Rebate - Cheaper Home Batteries Program.
The WA Government has gone one step further, requiring all batteries under the scheme to be connected to a VPP. Currently, the approved VPP providers are Plico, Horizon Power and Synergy.
All Plico batteries are connected to our VPP – the largest and longest-running VPP in WA.
VPPs are the smart energy choice
Plico’s Virtual Power Plant is an exciting advancement in clean energy technology that puts Aussies at the forefront of a sustainable future.
Joining the VPP enables you to contribute to grid stability, earn financial rewards, and enjoy the peace of mind that comes with being part of a community-driven initiative.
It also maximises your battery investment by earning ongoing financial rewards for your stored energy.
We’ve addressed some of the most common VPP questions because we know the value our VPP can bring to your life once you understand the basics.
Whether you’re seeking energy independence, financial benefits, or simply doing your part for the community and the planet, Plico has your back.
If you have any additional questions, please contact our switched-on team or submit your question using the form below. We want to help you reap the rewards when you join WA’s largest independent network of solar batteries!
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