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How Virtual Power Plants can impact the environment and community

Virtual power plants (VPPs) are a way for you to get great value from your solar energy system by sharing excess power stored in your solar battery.

You’ll not only receive financial benefits for helping support the grid, you’ll also receive a range of environmental and community benefits.

What are the environmental benefits?

VPPs allow you to provide an alternative, clean energy source to send back to your VPP community and the grid in times of high demand. That means less reliance on gas and coal power. The energy that VPPs generate comes from a clean, renewable energy source: the sun.

It’s a smarter, more sustainable energy solution which also increases the power of renewables by using the most of them.

What are the community benefits?

When you join a VPP program, you’re joining a community of like-minded households, as well as helping your community make the most of the energy they generate. When enough households have batteries, they can create a network using smart technology, so you and your neighbours can support the grid, together. That means fewer disruptions and it can help balance power supply during times of high demand (such as during summer).

Participating in an approved VPP Program may help lower electricity costs for all consumers through reduced wholesale electricity costs, reduced ancillary service costs, and through the provision of network support.

Together, you can help create a network of solar energy —and earn money for sharing your stored energy and support the path towards the electrification of Victoria.

You’re contributing to a future that’s better for the planet, better for your wallet, and better for the community. Learn more about how VPPs work and how they share energy to balance energy generation and demand.

Find out more about virtual power plants and energy sharing, the financial and environmental benefits.

Reviewed 30 June 2023

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