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AGL virtual power plant (VPP) explained

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If your home has solar panels on its roof connected to a solar battery, you could be eligible to join AGL’s Virtual Power Plant (VPP). By combining with other solar battery owners, you can earn extra money off your power bills, in addition to AGL’s standard solar feed-in tariffs. Read on to discover if the AGL VPP is the right option for your power needs and whether you should sign up.

What is AGL’s virtual power plant (VPP)?

AGL’s VPP is a network that connects the solar batteries at different AGL customers’ homes. Together, the batteries are used to store electricity during times of low demand, so it can be released into the grid when electricity is in peak demand, to help stabilise the electricity grid and reduce reliance on power produced by burning fossil fuels. AGL controls the network remotely, over the internet, and your own energy needs are always paramount.

By joining AGL’s VPP and sharing your solar battery’s spare capacity, you’ll be able to earn extra discounts that can help reduce your overall power bill.

What rewards does AGL’s VPP offer?

If you have solar panels and a compatible solar battery, AGL will give you a $100 signing-up credit for joining its VPP, and then ongoing $45 quarterly credits on your bill.

These quarterly credits are on top of the solar feed-in tariff you get when you supply energy back to the grid.

What is the eligibility for AGL’s VPP?

Eligibility for joining AGL’s VPP is limited to residents of four states, and then only customers with compatible solar battery systems. The main criteria for joining AGL’s VPP are:

  • You must live in New South Wales, Queensland, South Australia or Victoria
  • Have an operating solar system, plus a reliable internet connection
  • Have a home fitted with a compatible Tesla Powerwall, SolarEdge Energy Bank or LG Home Battery, plus a compatible SolarEdge inverter

Compare solar electricity prices

Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Ausgrid network in Sydney but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Citipower network in Melbourne but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Energex network in Brisbane but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on SA Power network in Adelaide but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

What should you consider before signing up to AGL’s VPP?

Although there are no lock-in contracts associated with AGL’s VPP, meaning you’re free to opt out at any time, there are some important points to consider before signing up to share your solar battery’s potential with AGL.

Perhaps the most important consideration is that sometimes, rather than using solar energy to charge your battery, AGL will use grid power to charge your battery in anticipation of a period of peak demand.

When this happens, you will pay your usual grid electricity rate for the power AGL uses. While these charges are capped at $50 (GST incl.) every 12 months, it does have the potential to eat into your $45 per quarter VPP rebate.

This means you could pocket $130 over a 12-month period, instead of $180, which is important to consider when comparing AGL’s VPP subsidies with those of competitor brands.

Is AGL’s VPP worth connecting to?

If you’ve got a compatible solar system at your home, signing up to AGL’s VPP could be a great way to help boost the returns you make on the solar energy you produce, in addition to AGL’s general solar feed-in tariffs.

However, the profitability of signing up to AGL’s VPP will ultimately come down to the deals from other VPP providers and the solar feed-in tariffs on offer.

If you’d like to compare AGL to a range of other solar providers in your state, click on the links below.

Choosing the right solar energy provider ultimately comes down to what’s important to you. Whether your focus is on customer service, feed-in tariffs or bonus incentives, just remember that you’re not limited to one electricity company.

By comparing your options, finding an appropriate solar provider for your home should be a breeze.

Bruce Pitchers
Content Manager - New Zealand
Bruce Pitchers is the Content Manager at Canstar New Zealand. An experienced finance reporter, Bruce has three decades’ experience as a journalist and has worked for major media companies in Australia, the UK and New Zealand, including ACP, Are Media, Bauer Media Group, Fairfax, Pacific Magazines, News Corp and TVNZ. Bruce started his career as an entertainment journalist before turning his pen to sport and fitness content, working for some of Australia’s leading sports magazines. Bruce then moved his focus to the world of finance and worked as a freelance writer and editor for The Australian Financial Review, the NZ Financial Markets Authority and major banks and investment companies on both sides of the Tasman. In his role at Canstar, he has been a regular commentator in the NZ media, including on the Driven, Stuff and One Roof websites, the NZ Herald’s Cooking the Books podcast, Radio NZ, and Newstalk ZB. Away from his desk at Canstar, Bruce spends many hours creating and editing puzzles for magazine and newspaper titles in the USA and Australasia, including Woman's Day and New Idea. To that end, he is the co-author of the murder-mystery puzzle book 5 Minute Murder.

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