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 at a higher rate for your energy than what it costs you, all without 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 peak demand VPP event, your battery storage helps boost energy supply to the grid. This usually means you need to draw energy from the grid overnight, to make up for the energy used during the VPP event. The additional energy you need to purchase from the grid, because your battery has been discharged for the VPP, is the same amount of energy that would otherwise be drawn from your battery. You receive VPP rewards at 3x your energy costs for the energy used in the VPP, which means you're already ahead financially when you buy energy from the grid later that evening.
Peak demand VPP events 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 than other evenings. This is not because of the VPP event, but because it's a hot evening and you need to leave the A/C on for longer.
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 3x your energy costs. We may discharge your battery energy at a faster rate - but rest assured, it's the same amount of energy.
The example below has been simplified to demonstrate how your VPP Rewards work.
If you have a 10 kWh battery and 9 kWh is exported to the grid during a VPP event (assuming your energy use is minimal), we will pay you 3x your costs for 9 kWh. This is around $8.74 (on the Synergy Home Plan (A1) tariff). When you purchase this 9 kWh from the grid later that night, you will only pay $2.91 for the same amount of energy.
This 9 kWh can be broken into 9 kW used in one hour, 1 kW used per hour for 9 hours, 2 kW used per hour for 4.5 hours and so on. 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 always provide energy to your home during the discharge phase in a VPP event. The rate of discharge is controlled by the VPP or by your inverter capacity. You are only paid for the energy exported from your battery to the grid.
Solar exports
During a peak demand VPP event, you may also receive DEBS payments for your exports to the grid. These are around 10c/kWh after 3 pm (depending on what Synergy Energy Plan you are on) and are credited on your Synergy bill. This is in addition to the VPP Rewards you receive for VPP events.
Where does my energy go?
Your battery will provide energy to your household and the grid during the discharge phase of a VPP event. When your battery is charging and storing, you will normally produce enough solar energy to power your home. Even if you have to purchase some additional grid energy to meet your household needs during this time, this is often minimal and covered by the 3x VPP rewards you receive. When your battery begins to discharge in a VPP event, any energy not being used in the home will be exported to the grid for up to 4 hours at a rate determined by the VPP or your inverter capacity.
That's why we suggest you can reduce your energy use if you wish to, so that you can increase your net VPP impact (increase your exports back to the grid) and your VPP Rewards.
Getting more value from your battery
For some members, a peak demand 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 peak demand VPP event, the VPP can utilise up to all your available battery capacity to support the grid. 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 peak demand 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.
