A Virtual Power Plant (VPP) is a network of solar and battery systems spread across many homes and businesses that are connected by software and work together like a single power facility to support an electricity grid.
When that electricity grid is experiencing high demand, such as on a hot summer night, participating households can sell their stored energy back to the market. This helps balance supply and demand for electricity while providing financial benefits to those households.
With Kleenheat Spark, you can connect your home battery to Synergy’s Virtual Power Plant. This VPP helps balance WA’s energy grid by using stored energy from participating batteries during peak demand periods. In return, you'll earn credits on your power bill that exceed the cost of any energy you use during VPP events, so you'll never be out of pocket. When you request a quote through us that includes a battery, you’ll have the option to join the Synergy VPP as part of your installation.
Joining a VPP in Perth
If you’re considering adding a battery system to your home in Perth, one of the key decisions you’ll need to make is whether to join Synergy’s VPP.
You’ll need to join the VPP to be eligible for the State Government’s WA Residential Battery Scheme (the rebate or zero-interest loan). The Federal Government’s Cheaper Home Batteries Program requires your home battery to be VPP compatible, but you’re not required to join a VPP to be eligible for a rebate under that program.
Most of Kleenheat Spark’s solar and battery packages are compatible and ready to connect to Synergy’s VPP.
Your decision as to whether to join the VPP should be based on your priorities. Benefits can include financial incentives, better grid stability, and supporting WA’s clean energy transition, but you’ll need to allow Synergy control over when your battery is charged and discharged for activation events. When you request a quote through our Kleenheat Spark online tool, we’ll leave the decision on whether to join the Synergy VPP completely up to you.
How does a VPP work?
Your home battery stores the energy produced by your solar panels during the day. Normally, you’d use that energy to power your home at night or during peak times.
When your battery is part of a VPP, it’s part of a network of batteries. In periods of high demand, Synergy can direct some of that stored energy into the grid to provide it with extra support. Too much solar energy flowing into the grid can make it unstable, while not enough power in the evening can cause shortages. By pooling thousands of household batteries, the VPP can smooth out supply and demand, and keep the grid reliable.
What are the benefits of joining Synergy’s VPP?
Joining Synergy’s VPP can come with some benefits, including financial incentives.
You’ll need to agree to join the VPP to be eligible for the WA Government’s WA Battery Rebate Scheme. If you meet all the eligibility criteria, that scheme can offer you a rebate of up to $1,300 off the cost of your battery system*, and the potential to apply for a zero-interest loan of up to $10,000. You can read more about the eligibility criteria for the scheme here.
If you purchase a battery using the WA Battery Rebate Scheme and join Synergy’s VPP, you’ll be able to be part of its Battery Rewards Program. This program offers activation credits of 70 cents per unit of electricity exported to the grid from your home battery, and energy offset credits to cover energy costs you may incur during an activation standby window (the period in which Synergy needs to charge and store energy in your battery before it discharges that energy to the grid). These offset credits ensure it will be beneficial for you to share your energy, and you won’t be financially worse off as a result. The credits are applied to your Synergy bill each quarter. You can learn more about the Battery Rewards program and eligibility for the program here.
What do I need to know before joining Synergy’s VPP?
There are some factors for you to consider before joining a VPP, including:
Your control over the energy stored in your battery.
When you join the Synergy VPP, Synergy will decide when it needs to use the energy stored in your battery to support the grid, and you won’t be able to choose which events you participate in. While this is capped at 30 times a year, there will be activation standby windows and activation events when Synergy will need control of your battery for a maximum of 6 hours at a time. You may want to understand how much control you’ll have over your battery’s stored energy before choosing to be part of the VPP.
You won’t be left out of pocket
You may be wondering what happens if you need to draw power from the grid while your battery is being used for a VPP event. Synergy’s program is designed to ensure you are not financially disadvantaged. The credits you receive for participating are specifically calculated to cover the additional costs you might incur from drawing power from the grid during these activation events. This ensures you should not be left out of pocket for supporting the grid.
Battery compatibility
Although all batteries in our Kleenheat Spark packages are VPP-ready, some batteries (including Tesla) are not currently compatible with Synergy’s VPP and are therefore not eligible for the rebate. As part of Kleenheat Spark’s online tool, we will check with you if you want to join the Synergy VPP, and if so, only recommend batteries which are compatible.
Terms, data and privacy
When you join the Synergy VPP and become part of its Battery Rewards program, you’ll join for a two-year term with Synergy. This means Synergy will manage your battery across the two-year period and be able to use the stored energy from your battery during activation events (that occur during peak periods). Synergy caps the activation events your battery is used for at 30 per year. You can learn more about Synergy’s Battery Rewards program and how it uses your battery in activation events here.
Once the two years are over, you will be able to opt out of the VPP if you wish to.
You can get a better idea of what you agree to when joining the VPP by reading Synergy’s VPP agreement.
Impact on battery lifespan
Generally, discharging your battery more often can reduce its overall lifespan. However, Synergy will discharge energy from your battery in the same way as powering your home, with little to no additional impact on your battery’s lifespan.
Adding a battery to your home
When you request a quote through our Kleenheat Spark online tool, we’ll ask you if you agree to connect your battery to a VPP. If you agree to join a VPP and meet the other eligibility criteria for the rebate, we’ll apply the rebate to the three recommended packages and reduce the upfront costs we present to you.
*Rebate amount available to Synergy customers