Plico Virtual Power Plant - NSW

• be a member of the Plico VPP (by entering into a VPP Service Agreement); and
• be on an eligible electricity plan with a participating electricity retailer.

Eligible electricity plans include the Alinta Energy SunShare Plan, subject to eligibility requirements determined by Alinta Energy.

To learn more and check whether the SunShare Plan is right for you, visit: alintaenergy.com.au/plico

VPP Rewards are paid by Plico under the Plico VPP Service Agreement and are calculated on metered electricity exported during VPP events. They are separate from electricity retailer charges and any solar feed-in tariff. Electricity is supplied by your chosen retailer. Plico does not provide electricity retail services or advice.  

Plico runs a low-touch VPP in collaboration with electricity retailer partners.

A VPP event will occur when the market price on the National Electricity Market (NEM) goes above $1,000.00. This threshold usually indicates that demand on the grid is high and has pushed up the market price. Plico and other service providers will send additional energy to the grid when this price threshold is reached.

When a VPP event occurs, your battery will send excess energy to the grid for up to 4 hours. You will be paid 50c/kWh for this energy.

Your battery will not be discharged beyond its set Depth of Discharge (DoD), which is usually 90-95% of its total capacity.

Note that your household energy use will be prioritised in a VPP event and only excess energy in your battery will be sent to the grid.

Once the VPP event has ended, your system will operate as normal.

Please ensure your inverter is always online.

In the event there is a blackout in your area at the same time as a VPP event, your system will not discharge to the grid. It will power your back-up circuit (if you have one) only.

Note that only eligible Plico members can access Plico VPP Rewards. 

A Virtual Power Plant (VPP) is a network of distributed energy resources (DER), in our case household solar batteries, that are managed remotely to provide services to the grid.

VPPs can allow battery owners to participate in the wholesale energy market and provide additional services to the grid (such as supporting grid stability, frequency regulation, or voltage fluctuations) that the energy market operator will pay for.

VPPs use advanced software and communication technology to connect and control a network of clean energy systems.

The VPP works by sending commands to all the connected systems that form part of the VPP network. This is done through a centralised digital energy monitoring platform that continuously monitors all connected systems in real-time. The command is sent over the internet and is received by all systems with online inverters.

When there is a VPP event, a command is sent to all connected systems at the same time, which switches the system in VPP mode. The system will follow the VPP commands for the duration of the VPP event and then return to normal operation.

In NSW, Plico participates in the wholesale energy market on our members’ behalf. When the market price reaches a certain threshold, excess energy will be sent to the grid, generating VPP Rewards for participating households.

Plico uses an advanced digital energy monitoring platform to manage the VPP.

With this platform, Plico has full visibility and control over the fleet of solar batteries, allowing us to provide grid services as a VPP. The platform also allows us to look at individual connected systems and ensure systems are working optimally. Individual data can only be integrated into the platform when inverters are online. It's therefore essential that Plico members keep their inverters online at all times.

It's therefore essential that Plico members keep their inverters online at all times. 

The Plico VPP provides VPP services across NSW. To be part of Plico VPP events in NSW, you must be:

1. A member of the Plico VPP (by signing a VPP Service Agreement); and
2. On an eligible electricity plan.

Eligible electricity plans currently include:

• Alinta Energy SunShare Plan

To see if SunShare is right for you or to learn more, visit the Alinta Energy website.

Eligible Plico members on an eligible electricity plan may access Plico VPP Rewards for the energy they contribute during VPP events.

VPP Rewards are 50c/kWh for energy exported from your battery to the grid during a VPP event.

VPP Rewards will be provided as a credit on your Plico account (if you have one), a digital cash card or bank deposit.

You will also continue to receive any export/feed-in-tariff tariff for your energy exports from your electricity retailer.

To be eligible for VPP rewards, you must: 

• be a member of the Plico VPP (by entering into a VPP Service Agreement); and

• be on an eligible electricity plan with a participating electricity retailer.

Eligible electricity plans include the Alinta Energy SunShare plan.

Once you’re eligible, all you need to do is keep your inverter online and we'll do the rest. From switching on the VPP to dishing out your financial rewards, we take care of everything.

VPP Rewards are subject to you being on an eligible electricity plan at the time of a VPP event, providing your NMI to us and your inverter being online. 

Signing your VPP Service Agreement is the first step to accessing VPP Rewards. You will also need to be on an eligible electricity plan to access VPP Rewards and have your system activated in VPP events.

Plico is working with retailer partners to facilitate our VPP participation in the National Electricity Market (NEM).

Our VPP is designed to financially benefit Plico members to ensure you're always better off being part of the VPP. You are always remunerated for your energy at 50c/kWh. This is a higher rate than most usage tariffs, all without you having to lift a finger. The VPP is another way you get more value out of your clean energy investment.

If you're unsure how you benefit or how payments are calculated, read on as we explain this in detail.

Drawing from the grid overnight

During a VPP event, your battery shares excess energy with the grid. Later, your home uses grid energy overnight instead of battery energy. You earn 50c per kWh for sharing your battery, which is more than the cost of the grid energy you use. This means you’re financially better off.

Any energy you draw from the grid after a VPP event is energy you would otherwise draw from your battery - and this energy is paid for at 50c/kWh. Your battery may be discharged at a faster rate - but rest assured, it's the same amount of energy.

VPP events can occur on hot summer afternoons and evenings when the energy use in your home may also be at its highest. It's likely you will use more energy at these times. This is not because of the VPP event, but because it's a hot evening and you may need to leave the A/C on for longer.

The example below has been simplified to demonstrate how your VPP Rewards work.

If your battery shares 9 kWh with the grid during a VPP event, you’ll earn about $4.50 in VPP Rewards (at 50c per kWh).

Later that night, your home may use about 9 kWh from the grid, which costs around $3.15 (at 35c per kWh). This means you earn more than you pay, leaving you better off overall.

Any energy you use above 9 kWh overnight is energy you would need to purchase anyway, regardless of whether you started the night with a full battery or not, and regardless of a VPP event occurring.

Note that your battery will prioritise energy to your home during the discharge phase in a VPP event. You are only paid for the energy exported from your battery to the grid.

Solar exports

If a VPP event occurs when the sun is shining, you may also receive solar export or feed-in-tariff payments for your exports to the grid. These are in addition to the VPP Rewards you receive for VPP events and are issued by your electricity retailer.

Where does my energy go?

Your household energy consumption will always be prioritised in a VPP event. When your battery discharges in a VPP event, excess energy not being used in the home will be exported to the grid.

Getting more value from your battery

For some members, a VPP event allows them to get more value out of their battery by ensuring its full capacity is utilised. For example, if you often have battery capacity left in summer when the sun rises, it is simply topped up to full capacity. During a VPP event, the VPP can utilise up to all your excess battery capacity. This allows you to get more value out of your battery as we compensate you for energy you may not have utilised in your home.

If there are consecutive VPP events, such as during a heat wave, your battery is charged as normal during the day - ready to run your home and support the grid all over again.

The Plico VPP will not discharge your battery more than once a day.

You will receive VPP Rewards for each eligible system you have that is on an eligible electricity plan that participates in a VPP event.

If you have a rental property with a Plico system, the VPP Rewards will be issued directly to you as the Plico account holder as a credit on your Plico account, a digital cash card or bank transfer. 

If you have a rental property with a Plico system, VPP Rewards will be issued direct to you as the Plico account holder. 

Note that all communication from Plico, including accrued and final VPP Rewards, will be provided to the contact on the Plico VPP Services or VPP Only Agreement.

VPP Rewards are issued to the current Plico account holder at the time VPP Rewards are issued.

If you transferred your Plico agreement/contract during an active VPP period, we will pay out any accrued VPP Rewards to you.

If you have any questions about your VPP Rewards, please reach out to us.

We partner with electricity retailers to access VPP Rewards for our members.

In NSW, electricity retailers are the primary providers of VPP services. Plico is not an electricity retailer, therefore we partner with eligible providers like Alinta Energy to ensure we can operate our VPP in NSW and deliver real returns for our members.

When you joined Plico, you also joined the VPP.

That means your system is already connected to NSW's independent, community VPP. How good?!

The next step to accessing VPP Rewards is to become eligible, by being on an eligible electricity plan.

Eligible electricity plans include the Alinta Energy SunShare Plan, subject to eligibility requirements determined by Alinta Energy.

Once you become eligible, we will include your system in VPP events and you'll start earning VPP Rewards!

To ensure your system participates in VPP events and earns you VPP Rewards, you need to keep your inverter online at all times.

We also need to have your NMI (National Meter Identifier) on record. If we do not have your NMI, we will be in touch to get this information from you. You can find your NMI on your electricity bill.   

If you're on an eligible electricity plan, we have your NMI and your inverter is online, your system will receive VPP commands from our remote digital monitoring platform when there is a VPP event. These commands will switch your system from its normal operating mode to VPP mode, ready to give the grid a boost of energy and earn you VPP Rewards.

Note that in rare cases, your system may not receive VPP commands and will therefore not participate in a VPP event. In this case, you won't contribute energy (no impact) to the VPP and won't receive VPP Rewards.

Not all connected systems will be active in every VPP event. Whether your system participates in a VPP event or not will depend on the following factors:

• Your inverter being online with a solid internet connection.
• Your battery having enough charge/capacity.
• The VPP command being received and implemented by your system. A drop in connectivity can prevent the VPP command being received and in rare cases, your inverter may reject the VPP command.
• Your system not being in back-up mode due to a blackout.
• Your NMI (National Meter Identifier) being in our records.
• Your system being located in the area where the VPP event occurs.

If your system is not active during a VPP event, then no energy will be utilised and no VPP Rewards will be applied.

VPP events can occur without any prior notice.

The great thing is you don't have to do anything during a VPP event. Simply keep your inverter online at all times and the VPP will do what it does best—earning you VPP Rewards!

High demand for energy can trigger higher electricity prices, put a potential strain on network stability and can lead to power outages if not managed.

The market price for electricity can increase during periods of peak demand and/or when there are supply shortfalls. When the price reaches a threshold, the Plico VPP sends excess energy to the grid from member batteries.

Peak demand usually occurs on hot summer evenings, when solar generation reduces and demand for electricity increases. This can happen over consecutive days and is often associated with heat waves, however it can also occur in winter.

Your household energy consumption will always be prioritised in a VPP event. When your battery begins to discharge in a VPP event, any energy not being used in the home will be exported to the grid. This may include some or all of the useable capacity of your battery.  

The VPP will not cause blackouts. If there is a blackout during a VPP event, your system will stop exporting and provide energy to your back-up circuit as it normally would. During a blackout, your system will use the available capacity in your battery. A minimum of 5% is usually reserved to protect the battery.

If a blackout occurs after a VPP event, the same rule applies. The system will use any available capacity in your battery to power your back-up circuit. If your battery is empty, your back-up circuit will not be powered. It is rare for a blackout to coincide with a VPP event, but it can occur.

If you are concerned about blackouts, you can request to have your minimum State of Charge increased so that you have more reserve in the event of a blackout. Please complete a Member Support Form and our team will apply the change for you or provide instructions on how to do this yourself. Please note that increasing your minimum State of Charge will impact how much capacity your battery has on non-VPP event days.

All Plico members with a system installed in NSW can be part of the VPP. This includes members on Plico VPP Only agreements.

To access VPP Rewards in NSW, you must be:

1. A member of the Plico VPP (by signing a VPP Service Agreement); and
2. On an eligible electricity plan.

You can access up to 50c/kWh for your energy during VPP events. 

The systems used in the VPP are Alpha ESS, Sigenergy and Redback Technologies battery solutions. Inverters must be online for members to receive VPP Rewards.

New members will be automatically added to the VPP network and can choose to switch to an eligible electricity plan and access VPP Rewards.

We also need to have your NMI (National Meter Identifier), which we will collect during the sales process. Your inverter needs to be online to participate in the VPP.

All Plico members have signed a Virtual Power Plant Service Agreement. This means that when you joined Plico, you also joined the VPP.

Your agreement states that: we will supply a range of services to you or for your benefit, and we or our energy contractor may operate our equipment and provide VPP products to third parties through the wholesale electricity market or otherwise.

To be active in VPP events, you'll need to be on an eligible electricity plan.

Then we handle everything from your VPP Rewards to activating your system in a VPP event. All you need to do is sit back while you sell your energy for a profit.

If you signed a Plico VPP agreement, you have signed up to be part of the VPP. A minimum term and/or opt-out fee may apply. Please contact us to discuss a possible solution.

You can join the Plico VPP if you have an AlphaESS, Sigenergy or Redback Technologies solar battery in NSW. Join Plico as a VPP Only member and you could access VPP Rewards when you're on an eligible electricity plan.