Engineer and ZESN solar leader Chris explains how virtual power plants work to harness renewable energy and reduce emissions. We are working with Clean Energy for Eternity and Clear Sky Solar Investments to help reach the Northern Beaches Council ambitious target of 50% of suitable premises in the LGA installing solar panels by 2030.
What is a Virtual Power Plant?
A Virtual Power Plant consists of a network of distributed solar power and battery systems co-ordinated by a central VPP operator that:
Releases some (or all) of the batteries’ stored energy into the grid during periods of peak demand when wholesale electricity prices are high.
May direct the batteries to charge from the grid when electricity demand is so low that grid stability is threatened.
How does it work
The provision of these grid services can be very lucrative for the VPP operator and they will share some of this benefit with their network members in different ways, including periodic fees, payment for battery energy used, and enhanced feed-in tariffs for exported energy, reduced consumption rates, etc.
By being part of a Virtual Power Plant you allow your battery to play an active role in the operation of the grid, supporting it in handling increasing levels of renewable energy – so it’s a good thing to do in principle. You’ll also get some financial reward.
But for this you’ll be giving up control of your battery to a third party, may find your battery has insufficient charge for your needs at times and will have your battery worked harder than if used by yourself alone.
A VPP operator will generally become your Retailer, or may operate through another designated Retailer.
Choose your VPP operator carefully
It’s really important to read the small print on any VPP offer, as the mix of rights (the operator’s) and benefits (yours) vary considerably and can be hard to understand and compare.
A couple of points to keep in mind:
The VPP operator is focused on making money for themselves, not for you – and it’s your battery which is the asset they’re going to be using, so be sure you’re getting a fair slice of the benefits
The big ‘gentailers’ (Energy Australia, AGL, Origin) have a strong interest in maximising output and extending the life of their fossil fuel power stations, and excessive market power within the NEM, so consider if you want to give them control of your battery as well! Look instead for a VPP operator focused on renewable energy only.
In conclusion
If you do your research and decide you can put your battery to work in supporting the grid, and get more than enough benefit to compensate for the sacrifices, then go for it – but do so with an VPP operator that shares your commitment to renewable energy!
There are several sources comparing current VPP offers, including this one from Energy Matters.
Solarquotes and Energy Matters have very good information about VPP on their websites, which we’ve drawn on substantially for this article.
Need assistance with solar for your business or home?
Chris Lee is happy to discuss solar for your business or house, you can email Chris here.
Thank you for your interest! With electricity prices and petrol prices rising we enjoyed discussions with over 100 people and families keen to save money and reduce emissions.
Net Zero Information Stall
Solar and Net Zero House, Strata, Businesses and Schools Info and Q&A
Marieken, Louise, Narween, Kate and Jane answered many questions and gave out our Guides on ways to reduce emissions and save money on bills. We love explaining that you can approx halve your household emissions simply by switching to a renewable energy company! Find out more
We ask would you like to save money on energy bills for 25+ years? We had many discussions about rooftop solar. Costs have come down, prices are from approx $1k per kW. Warranties have gone up, some panels have 25+ year warranties. Solar can repay your investment in as little as 3 years, and provide you with free renewable energy for many more. We have guidance, case studies and videos for Solar My House, Solar My Strata and Solar My Business.
Louise & Marieken our stall leaders
Answering your questions
Ready to help with guides and prizes
Net Zero Q&A and information with Marieken, Louise, Narween, Kate and Jane. Thank you also to stall set up and pack up crew Michael and Douglas
Electric cars display and Q&A
Q&A about Hyundai Ioniq 5, Tesla Model 3 and Toyota Corolla Hatchback
Our car owners David, Milo, Narween and Alan answered many questions about electric cars, range, features and charging at home and out and about. It was a cold day and Ursula and Narween were glad to make Ioniq-powered-Ecoffee and tea for guests.
Our next car will be electric, it’s great to see options and sizes, hear what it’s like to own one, and understand what real life range is like and how often we need to charge, thank you – David & Felicity
Hyundai Ioniq 5 SUV is an electric SUV with a 72.6kWh battery and approx 450 km of range, charging to 80% in approx 18 minutes at a fast charger.
Tesla Model 3 Sedan is an electric sedan with a 62.3kWh battery and approx 450 km of range, charging to 80% in approx 20 minutes at a fast charger (Standard Range model).
Toyota Corolla Hatchback is a hybrid with an electric motor and a petrol engine, giving greater fuel efficiency and with less emissions than a petrol only car.
EV display and Q&A
EV display with Tesla 3
EV display with Hyundai Ioniq 5
EV display with Toyota Corolla
E-Coffee with Gill, David and Chris
E-Coffee with Narween and Ursula
EV Display and E tea and coffee with David, Milo, Narween, Alan and Ursula
Electric bike conversion workshop
How to convert your push bike to an electric bike
Chris and Gill brought their E-bikes and answered many questions about speed, range and price. Chris converted his pushbike into an E-bike using a DIY Swytch E Bike conversion kit and explained how easy this is to do.
The E-bike conversion kit looks small and easy, a great option for people that have a bike and want the option of electric assistance – Michael
Chris and E-bike conversion
E-Bike display
Gill, Chris & guests
Chris, Gill, guests and E-Bikes
What’s next?
Our next Info Day and EV Display is in September, let us know if you’d like to be part of our volunteer crew. we provide a T-shirt and coffee 🙂
If you can’t come along, you can access all of our info online, and you can pledge your low carbon switches and win a signed copy of Saul Griffith’s new book The Big Switch here.
What rebates can I get on solar panels? How much does it cost to install rooftop solar? How do I choose a reputable company? Are batteries worth the money? And what’s with these Facebook ads for cheap deals?
Bring all your questions to our free Solar My House webinar at 6.30pm on September 16, 2020. Hosted by volunteers Ann-Charlott and Ursula, with the expert input of solar guru David Veal from Solarpro, this relaxed and friendly info session aims to get you up to speed on rooftop solar and show you how you could save money on power bills and help the environment.
We’ve already helped 100s of households start their solar journey. Here’s what some of them have said:
I thought the evening was honestly great. For me it removed any barriers to entry with making the switch, mostly around research, clarity and options. I thought the good, better, best approach was perfect. Thanks so much for starting this clever, helpful and powerful (no pun intended) initiative.
I love the fact that you guys are getting up and doing something when so many others just worry but never take action. It is exciting to have a target to work towards for our region. I love the fact that you have built in a ‘giving loop’ and plan to install solar for various charities to allow them to focus their funds on their core work, while simultaneously reducing emissions. Simply brilliant!
I have discovered a secret weapon in my quest to persuade people to make the switch to renewable energy. It’s called GADGETS!
We’ve had solar panels for nearly ten years now. 18 months ago we bought a Tesla 2 battery for $11,500 (which, as I now realise, was quite a bargain since prices have gone up this year). The installer, who did a great job, showed me how the app tells you exactly how much electricity you are consuming at any moment, and where that electricity is coming from.
I didn’t realise at the time how powerful that insight could be. Three pictures
A sunny day in North Balgowlah
A sunny day in November 2019
The big yellow mountain is solar energy, collected from our rooftop panels. The jagged line is our household energy consumption. (You can see that I made a cup of tea just before 8 a.m., and I ran the dishwasher and the washing machine in the morning.) Below the horizontal axis shows how the battery works: when the sun comes up excess solar energy feeds into the battery. It’s full by noon, so the grey area is excess energy flowing back to the grid (and earning a feed-in tariff). And you can see that, on this day, the battery powered the house right through till sunrise, so we were 100% self-powered. ☺
Solar Offset
Of course, the sun doesn’t always shine
But this screen shot shows that across 2019 we offset our usage — 8166 kWh — with 5473 kWh solar power from our roof. So a 67% reduction in our electricity bill and a 67% reduction in our carbon emissions. The retail price in NSW per kWh is 33c. So *furrows brow, doing sums* that’s $1806.09 in savings in 2019. Nice.
What’s happening here?
This is a screenshot from March 2020 showing where our power is coming from. We’re in the middle of a powercut. The Tesla battery automatically takes over, so that the house can be independent of the grid, using power from the solar panels and, if needed, from the battery. WFH with no grid? No problem.
We love checking on the app to see how much we are saving. But above all, this funky little app, with its visual representation of real time household electricity usage, is an amazing communications tool. Household power bills aren’t sexy but gadgets totally are. Therefore, my husband, even though he is not involved in environmental campaigning, gets a real kick out of showing his friends how we are helping ourselves to free energy (and helping the environment at the same time).
Do you have a battery? Do you have a story to tell about your journey towards zero emissions? Let us know by [best way to connect]
