Our NSW Virtual Power Plant has arrived!
We’ve got some exciting news – we’ve just launched our very first Virtual Power Plant (VVP) in New South Wales in partnership with Ausgrid! If you don’t know much about VPPs, it’s probably a good idea to start here and come back to this article when you’re all up to speed.
If you have a general understanding of VPPs, you’re probably well aware that not all offers are equal. Some VPPs offer you a single upfront payment for joining, others offer you a payment each time your battery is used. All rates of payment differ and most importantly, not all VPP models guarantee you win in the end. This blog walks you through what joining a VPP is like day-to-day so you can be confident in choosing whether or not to join a VPP.
At ShineHub, our VPP model is very simple and the moral of the story is – you always win.
ShineHub’s VPP with Ausgrid
Our NSW VPP is delivered in partnership with Ausgrid and will initially be a trial to test the reliability of home batteries to support the grid during times of need. VPPs are critical to powering Australia’s future without fossil fuels. Home batteries provide sustainable, localised power to support communities. This is in stark contrast to our current network which is highly centralised and fossil fuel dependant. VPPs can also assist during times of crisis and blackouts – for more on this topic, read my latest article in One Step Off the Grid watch a Sky News VPP segment here, or check out Ausgrid’s live blackout monitoring page.
How it works – it’s incredibly simple!
Every time we send energy from your battery to the grid you receive a payment of $0.45/kWh from ShineHub. On top of that, you will also receive your existing solar feed in tariff from your electricity provider (typically around $0.10/kWh these days).
That makes a total earnings of around $0.55/kWh – more than double the $0.26/kWh cost of grid power.
Check out the Channel news video coverage of the program here.
Which electricity retailer is this VPP compatible with? All of them!
This is one of the easiest VPP options going around because you do not have to change to a specific electricity retailer to join. You can remain with your current retailer, or switch to another one. It’s completely up to you and you have the freedom to choose any electricity retailer you want at any time while still participating in our Virtual Power Plant.
Let’s look at a real-life scenario, to see how the VPP could work for you
Let’s say you’ve signed up for the VPP and it’s a time of peak demand. The grid needs 10kWh of power from your battery to help support the community. Here’s how that would work step by step:
· For the Virtual Power Plant Event, 10kWh of electricity is discharged from your battery to the grid.
· VPP earnings would be $5.50
o You receive $0.45/kWh for the battery power from ShineHub.
o You still receive your standard solar feed-in tariff of around $0.10/kWh.
o 10kWh * $0.55/kWh = $5.50
· Now that your battery is empty, you will have to buy some power to cover your usage throughout the night. The cost of buying the power will be around $0.26/kWh.
· Cost of buying replacement power from the grid would be $2.60.
o 10kWh * $0.26/kWh = $2.60
· Overall, your net profit would be $0.35/kWh = $2.90.
o $5.50 VPP earnings – $2.60 replacement grid energy cost = $2.90
Qualification to join VPP
The initial release of the ShineHub Ausgrid VPP is limited to 300 participants and has a few qualification criteria.
First and foremost, you must be located with the Ausgrid territory. You can check if your postcode qualifies at this link.
If you currently don’t have a battery, we’re offering a $2,000 discount on compatible batteries for the first 300 members of the virtual power plant.
Want to chat with a solar expert about panel, battery, or virtual power plant options for your home? Click here to book in a time to chat.