Victoria’s VPP Pilot Program: Your Key Questions Answered

  • What Is a Virtual Power Plant, Or VPP?
  • How Does the VPP System Work?
  • Is The VPP Option Right for You?
  • Who’s Eligible for the Solar Homes VPP Program?
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June 23, 2022

Victoria’s VPP Pilot Program: Your Key Questions Answered

In further support of the magnanimous $1.3 billion Solar Homes Program, the Victorian government has expanded options for homeowners by offering a Virtual Power Plant (VPP) Program. Suburbs in and around Melbourne are largely responsible for the solar boom, and since 2018, the Solar Homes Program has already benefited over 200,000 Victorians. Because the energy tariffs are all set to rise from July 1, customers can now enroll in the VPP pilot program through the existing Solar Homes scheme.

With an assured battery rebate of $4,174, the VPP program offers a great alternative and offers more savings than the maximum of $3,500 that consumers could get through the Solar Homes previously. What is a Virtual Power Plant? Should you consider the option? Are you eligible for the Solar Homes VPP Program? We have answered the key questions in brief below in this guide.

What Is a Virtual Power Plant, Or VPP?

A VPP refers to a network of homes that have rooftop solar systems with solar batteries and are connected together using smart AI-based software. VPPs allow customers who are a part of the program to share and maximize the use of solar energy, besides saving huge on energy bills. The VPP program will also enable consumers to minimize their dependency on the grid.

How Does the VPP System Work?

When there is an increase in energy demand, the VPP will take power from your solar battery and minimize the stress on the grid. Because you are sharing the solar power you have stored, the VPP gives you credits that can help you save on your energy bills directly. With the new Virtual Power Plant (VPP) Program in Victoria, consumers can expect to reap the existing investment in their residential solar system.

Is The VPP Option Right for You?

VPP programs allow you to save huge on energy bills, and that could mean considerable savings over the years. Also, it allows solar homeowners to help the grid and the community, and because you are sharing a renewable source of energy, you aren’t technically paying for the stored energy that you give away. 

If you sign up for the VPP program, you essentially allow the operator to gain access to the solar energy stored in your battery as per the agreed Terms & Conditions. Consumers who are seeking energy dependence with their own solar battery may not benefit as much, but each VPP program is unique. We highly recommend that you read the documents well and decide if VPP is the right choice.

Who’s Eligible for the Solar Homes VPP Program?

A consumer looking to join the Solar Homes VPP Program must fulfill the following criteria –

  • Have an existing solar system with a minimum capacity of 5kW. Or must agree to install a 5kW solar panel system with a battery.
  • Must be an owner/occupier of the property (where the solar system is installed.
  • Must not have received a rebate under the Solar Homes program on the same property.
  • Must install a battery that’s on the approved list of Solar Victoria.
  • Has Distributed Network Service Provider (DNSP) approval for connecting a solar battery to the grid.
  • Must have a gross taxable household income lower than $180,000/year.
  • The property’s valuation should be less than $3 million.

Call Arise Solar Today

Want to know more about the Virtual Power Plant (VPP) Program in Victoria? Have questions about the program? We would be happy to assist. Arise Solar is among the best-rated local installers in Victoria, and we can offer answers to your questions and a quick solar quote for your home.

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