8 Key Benefits of Using a Virtual Power Plant with Your Home Battery Storage

As a homeowner, you’re constantly looking for ways to reduce costs and increase efficiency in your household. With electricity prices expected to rise significantly year on year, now is the perfect time to consider integrating your home with a battery storage system and a Virtual Power Plant (VPP). Transforming your house with a Smart Home Upgrade is done so with a combination of solar panels, home battery storage, and a VPP which can be a game-changer, saving you both money and whilst it speeds up your payback period of your system. Apart from this, a Smart Home Upgrade will also provides you numerous other benefits and here are the eight key advantages of using a VPP with your home battery storage.

1. Earn Money from Your Electricity Retailer

One of the most attractive benefits of using a VPP is the potential to earn money. By joining a VPP, your home battery storage system can contribute excess energy to the grid during peak demand periods. Electricity retailers pay for this energy, providing you with a new revenue stream. Essentially, you become a small-scale energy provider, selling your surplus electricity from your panels and battery back to the grid.

Nullifying electricity bills is one thing, but is it possible to earn credits from your retailer and cash the credits out? Welcome to the next level. Take Matt's experience for example, he earned nearly $1,000 in a day with Amber Electric's VPP.

Similarly, at Smart Energy Answers, our 99kW system on our HQ ensures that we no longer receive bills, instead we only receive checks.

2. Reduce Your Electricity Bills

With a VPP, your home battery storage system can optimise the way you use your energy. You can significantly reduce your electricity bills by strategically managing when you draw electricity from the grid and when you use stored energy. 

During times of peak electricity prices, the VPP can draw energy from your home battery rather than the grid, reducing the amount of expensive electricity you purchase. Electricity prices often vary throughout the day, with higher rates during peak demand periods. A VPP can shift your energy consumption to times when electricity prices are lower. For example, it can charge your battery during off-peak hours when electricity is cheaper and use this stored energy during peak hours, effectively lowering your overall energy costs. By leveraging these programs, a VPP ensures you make the most of your stored energy and minimise your dependence on expensive grid electricity. Over time, these savings can add up to a substantial amount. 

3. Increased Energy Independence

A VPP reduces your reliance on the traditional power grid. By integrating your home battery storage system with a VPP, you generate, store, and manage your own energy, making you less dependent on external electricity providers. This increased energy independence is especially beneficial during power outages or grid instability. This ensures that your home remains powered even when the grid goes down. This also means that you are less affected by fluctuations in energy prices.

4. Environmental Benefits

Participating in a VPP contributes to a greener environment. By storing excess energy generated from renewable sources, such as solar panels, and feeding it back into the grid, you help reduce reliance on fossil fuels. VPPs effectively integrate renewable energy into the grid.  This not only decreases your carbon footprint but also supports the transition to a more sustainable energy system.

5. Enhanced Grid Stability

VPPs aggregate the power from many home battery storage systems to provide a reliable source of energy to the grid. This helps stabilise the grid, especially during periods of high demand or unexpected power plant outages. By participating in a VPP, you play your role in enhancing overall grid stability and reliability.

A notable example of this occurred in early May. According to the Australian Energy Market Operator (AEMO), several major generation units in New South Wales went offline, and transmission line maintenance was underway, leading to a high demand for energy. During this critical period, VPPs played a critical role in stabilising the grid by drawing power from the distributed network of home battery storage systems, VPPs were able to supply much-needed electricity, lessening the impact of a power shortage. In fact, around 2,900 VPP participants in New South Wales collectively earned a staggering $525,424.00 in a single day because of their solar exports through their VPP. 

This win-win situation showcases the advantages of integrating home battery storage systems with VPPs, as homeowners earned an income, enhanced their individual energy independence and they supported the overall grid stability.

6. Access to Real-Time Energy Data

Many VPP platforms provide homeowners with access to real-time data about their energy usage and production. This information can help you make informed decisions about your energy consumption, identify opportunities for further savings, and gain a better understanding of your household’s energy needs.

This real-time data can offer you bill transparency, allowing you to track and understand your energy billing charges more accurately. Additionally, it can facilitate preventive maintenance by continuously monitoring system performance and identifying potential issues ensuring that your energy system operates efficiently and reliably.

7. Optimised Battery Usage

A VPP can optimise the usage of your home battery storage system. Advanced A.I. driven algorithms manage the charging and discharging of your battery to maximise efficiency and lifespan. This means you get the most out of your investment in your battery storage system, and the VPP ensures it performs at an optimal level for a longer period.

8. Support for Renewable Energy Integration

The integration of your home battery storage system with a VPP, will support the broader adoption of renewable energy sources. VPPs help manage the intermittent nature of renewable energy by storing excess energy when production is high and distributing it when demand is high. This facilitates the integration of more renewable energy into the grid, and it promotes a cleaner and more sustainable energy future.

Conclusion

As electricity prices continue to rise, the benefits of the integration of a Virtual Power Plant (VPP) with your home battery storage system is increasingly compelling. From earning money through selling excess energy to reducing your electricity bills and gaining energy independence, a VPP is a solution that offers numerous advantages. Additionally, by participating in a VPP, you'll contribute to environmental sustainability, grid stability, and the broader adoption of renewable energy.

Investing in a VPP today is not just a smart financial decision but it is also a step towards a more sustainable and resilient energy future. Different VPPs, such as Amber, Nectr, and Origin, may also offer various sign-on bonuses, further sweetening the deal.

For more education and guidance through the VPP process reach out to our Smart Energy consultant and we'll help you select a VPP that best fits your needs, so that you too can maximise the benefits of your home battery storage system.

Join a VPP today and take control of your energy's future.