VPP stands for Virtual Power Plant and is created by a network of home solar panels and battery storage systems all working together to generate, store and feed energy back to the grid during peak times. The combined battery is used as a generator to supply power to the network when it is most profitable to do so — such as when wholesale energy prices rise to meet peak demand periods.

When operating as a VPP, households and businesses can sell their stored battery electricity during price spikes to pay back the investment on their systems faster, or even make a profit.

Traditionally, energy companies may offer standard payments or incentives ahead of time when they foresee a spike in demand. Still, these don’t consider the actual energy contribution customers are making or likely to make.

Under the current system, energy consumers are subject to additional hidden costs and mark-ups by the electricity retailer to cover supply costs. Powerclub Members who invest in solar and battery storage and participate in the VPP have real-time access to leverage the wholesale market. These significant advances in technology are furthering the home battery storage market and swiftly setting the standard for households in Australia.

Participating in a VPP means that there is a much better utilisation of overall community resources. It will reduce the need for external generation (especially from dirty sources such as coal and diesel), and it will assist the transition to green energy with the financial benefits remaining within the community.

As a Powerclub Member participating in the community VPP, you will earn money every time it is used to support the energy grid or when it exports at times when wholesale energy is more valuable. Wholesale energy prices vary depending on supply and demand and generally peaks in the morning, and between 4 pm – 8 pm. By exporting stored energy at peak times, we estimate that the average participant will earn between $250 - $500 per year depending on individual usage. We expect the total benefit, including savings from Powerclub's wholesale rates and solar Feed-in-Tariff, your decreased consumption and profits from VPP events to be between $2,500 - $3,000 per year based on daily usage of about 25kWh.

Each participant’s returns will be slightly different depending on how much spare battery capacity they have at the time of export. Members with lower usage are more likely to have additional capacity and may, therefore, gain higher returns. Powerclub values a fair system which is why each household or business gets rewarded in direct proportion to their participation.

Your solar and battery installation may be eligible for up to 30% in discounts and rebates from your state government's solar battery scheme. To celebrate the launch of Powerclubs VPP, we are also offering a $500 discount to the first 20 participants, free Powerclub Membership for your first 12 months, $250 towards your Powerbank contribution and 2 years free access to VPP technology.

Depending on your unique usage pattern and circumstances in the wholesale market, we anticipate it will take between 6 - 9 years to pay back your solar and battery investment.

You need a 6 kW solar system and 10 kWh battery system with a compatible Distributed Energy Resources Management System or ‘DERMS’. As part of this installation, your electricity meter will be upgraded to a Smart Meter. In this first release of Powerclub's VPP, we will only support Sonnen batteries; however, we are investigating what is required to enable all battery owners to participate, so all Powerclub Members can benefit.

Once your solar and battery systems are installed, and you have been upgraded to a Smart Meter, you will be ready to join the Powerclub VPP. In addition to the benefits of the VPP, Powerclub membership saves you money by providing access to electricity from the grid at wholesale prices. We don’t profit from your usage, and we exist solely for the benefit of our Members.

If you already have a compliant Sonnen battery system, you will be able to participate. If you have a different battery system, we will place your name on our register and notify you when the technology is extended to include other batteries.

The VPP is available in all states Powerclub operates in, including South Australia, Victoria, New South Wales, ACT and South-East Queensland.

If you already have at least 6kW solar system, we can install a Sonnen battery and you will able to participate in Powerclub's VPP.

Power Ledger and Powerclub have joined forces with Sonnen Batteries and Natural Solar with a mission to put control of energy bills back into the hands of homeowners and save them thousands on their electricity bills.

Natural Solar will install your 6kW Canadian Solar system and 10kWh Sonnen battery. Canadian Solar is one of the biggest solar panel producers in the world and is dedicated to continuous improvement with a team of more than 250 scientists, engineers and technicians. This technology, combined with Sonnen Batteries, creates an intelligent, long-lasting and economical solution for your energy future.

Power Ledger is a fast-growing tech startup that has developed a world-first blockchain-enabled energy trading platform to make energy markets more efficient. Their VPP technology benefits customers with cheaper energy bills, more attractive payback periods on battery storage, and the opportunity to further monetise their investment in distributed generation.

Powerclub is the only Member-owned energy retailer in Australia that gives customers access to wholesale electricity prices, charges and operational expenses at cost. Due to Powerclub's non-profit processes, Powerclub Plan's are on average 30% cheaper than the AER reference price based on general usage in the SA Power Network. For Members with solar, including those that join the VPP, Powerclub also pays the wholesale value of solar exports, giving faster returns on investment.

The sun is a powerful electricity source with just one hour of sunlight providing enough energy to meet global needs for a year. Unfortunately, we don't have the technology to harness all this energy yet, but installing solar panels and battery technology at your home will go a long way for our planet, and your pocket.

Currently, energy generation is the largest source of greenhouse gas emissions in Australia, with 72% of our electricity being produced by coal-burning power stations. Unlike coal, gas and diesel, solar energy can be harnessed all over the world and has an endless supply. By investing in solar panels and battery technology, homeowners can generate a renewable source of energy to supplement their household needs, while reducing their electricity bill and adding value to their home.

For Members with solar, including those that join the VPP, Powerclub pays the wholesale value of solar exports, giving faster returns on investment.

Energy generation is the largest source of greenhouse gas emissions in Australia, with 72% of our electricity being produced by coal-burning power stations. By exporting renewable energy to the grid during periods of peak demand, you're helping to alleviate pressure on the grid, which reduces Australia's reliance on fossil fuels.

Using solar generation and battery storage to supply green energy to yourself and your community means your providing another source of zero-emission electricity to the grid.

All energy transactions are recorded on the blockchain, which allows for greater transparency, increased automation and reduced possibility of human error. Blockchain technology removes friction, streamlines price discovery and allows for energy to be traded easily.

Utilising blockchain also opens the possibility for a cross-retailer VPP ecosystem and settlement system, where the financial transaction is pinned to the physical transaction, regardless of who the energy provider is. If we enable this type of interaction between VPPs across networks, we can build an economic framework and marketplace where owners of solar and batteries are incentivised to keep supporting the overarching system, rather than defecting from the grid altogether.

In the future, a household with battery storage could have their system automatically set up to dispatch their stored energy during a peak event in the National Energy Market (NEM) and be instantly paid for it. Blockchain can mitigate the risk of a single party controlling the central repository of sensitive information, as would be required if using traditional database technologies.

Power Ledger’s technology creates a marketplace for energy trading. The software works alongside the existing infrastructure of energy systems, enabling greater control and ownership for consumers and producers alike.

Power Ledger’s VPP product is an end to end solution, providing integration to the Distributed Energy Resources Management System (DERMS) layer which facilitates the physical dispatch of electricity, as well as the financial layer which supports daily reconciliation and settlement. Our system will respond to signals received from the market or from a network operator and send the requisite commands to optimise and orchestrate the portfolio of distributed assets.

Power Ledger’s VPP platform provides a real-time transactive financial layer. Self-executing smart contracts integrate with system controls, creating an autonomous, energy market with secure value transfer between customers, networks and market participants. Blockchain is the technology which essentially connects a financial transaction to a physical transaction of energy, and ensures all participants are paid for the services they provide.

Powerclub Members will be able to access the VPP early in 2020.

Natural Solar will advise you of the refund policy before installation of your battery and/ or solar panels. Once your solar and battery system is installed, you have the flexibility to opt-out of Powerclub's VPP. Your contract with Natural Solar will remain, and they will manage any outstanding payments required for the installation.

As your new energy retailer, Powerclub doesn't have lock-in contracts. If you want to opt-out, you can exit at any time. Your annual membership is non-refundable, as Powerclub paid the first year on your behalf. Typically your Powerbank balance is fully refundable if you choose to leave Powerclub. However, if you transfer to another retailer within the first two years, Powerclub will retain the $250 contributed to your Powerbank on your behalf. Your Powerbank is designed to grow over time to maximise the coverage you receive from it. Once you've been a Member with Powerclub for at least two years, the Powerbank becomes yours and will be refunded in full if you choose to leave.