Origin Loop virtual power plant (VPP) explained

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One of the country’s biggest energy providers has launched a smart network of connected solar batteries that can help customers save on power bills and relieve pressure on the grid.

Origin Energy’s Loop virtual power plant (VPP) enables households with a rooftop solar and battery system to feed renewable power back into the grid during times of high demand in exchange for credits on their bills.

The Origin Loop VPP acts as a mini power station where a network of homes with solar batteries help manage supply and demand for grid electricity. Using AI technology, the Origin Loop draws upon live grid data to determine when power is most needed. It then communicates with participating Origin customers’ batteries to send back a small portion of their stored energy to meet this demand.

For backfeeding power during peak demand, Origin customers in New South Wales, Queensland and Victoria can earn up to $240 a year in bill credits. These credits will be paid in monthly instalments over five years.

To sign up to Origin’s Loop VPP, customers will need to install a compatible battery system through Origin and remain with the provider for a minimum of five years.

Origin Energy Solar Plans

How do I sign up for Origin’s Loop VPP?

For Aussies keen on joining the Origin VPP, they’ll need the following:

• An eligible battery and inverter installed at your properties. 
• Reliable internet connection to connect your solar battery to the Origin Loop VPP.
• A solar system with a minimum capacity of 5kW.

In order to be connected to Origin’s VPP, bill-payers will also need to be signed up to one of Origin’s electricity plans. They’ll then need to remain an Origin customer for a minimum of five years.

For customers that don’t have a compatible solar system or battery, they may also be able to join Loop through Origin’s energy-saving rewards program, Spike. This program allows customers to earn cash or shopping vouchers for reducing their energy usage during challenges or ‘SpikeHours’.

To join the Spike program, customers will need to have a smart meter.

To further break down what’s involved with the Loop network, Canstar Blue spoke to Origin’s Head of Customer Innovation, Brendan Manzie, to gain some insights.

What’s the point of creating a VPP or in Origin’s case, Loop?

“The principal thing with a VPP is that we are trying to look at when the grid is under stress or when there may be lots of demand coming from say your neighbours or others in the neighbourhood around you.”

“… we can meet those key demands by leveraging the solar that has been generated earlier in the day, storing some of it in your battery and then pushing it out to the grid to meet that demand at a time of peak stress.”

Aside from being financially rewarded, what other benefits can bill-payers expect from joining Loop?

“The other benefit, not necessarily a financial one, is that by connecting that battery up to our Loop VPP, we can also keep an eye on the battery. Every few minutes there is data flowing in and out, so if something goes wrong, we see immediately if the battery is not charging up as it should or not discharging as it should.

“Once you install solar, in most instances, you’re then on your own and the adequate tracking and monitoring just isn’t really there and that’s something we are really focused on in Loop is to give those financial benefits up front but then to make sure that these assets are there and they are working as well on the ground for the next 10 years.”

What should customers be mindful of when joining a VPP?

“To a customer looking to sign up to a VPP, a key thing to keep in mind is, being clear on how much energy or how much access a retailer has to your battery … We have specific terms and conditions for VPP or Loop battery customers that dictate the maximum amount of energy that will come out of that battery.”

Manzie also encourages customers to consider all the potential benefits of a VPP when choosing a provider, highlighting cost savings, monitoring and support and visibility of information as important factors to consider.

Origin Energy Plans

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