What exactly is a Virtual Power Plant?

and what does it do?

The real value of a Virtual Power Plant (VPP) in WA’s energy system is about supporting regional reliability, voltage issues and reducing peaks. It’s generally in the evening or during peak tourism that we have problems. Its 1000 + household or businesses with the same solar and Battery systems on every house connected through the cloud. A VPP is about increasing self-consumption up to 90% in every house and making sure they don’t consume in the evening peak time. We may also be able to become a retailer in future years, but this is not the only goal of our project.

We want to ensure we are providing a standard kit to every home:

  • It’s 6.6 kw on your roof – solar panels

  • It’s a 5.0 kva inverter

  • It’s a 7.2 kwh battery


So how does this work from a financial point of view?

1. The project will purchase 1,000+ systems and will finance that purchase through funds provided by SUSI.  
2. It will then lease those units to you for a cost of $36 per week - the price of a coffee a day.  
3. You will then be able to use the system on your roof to reduce your power bill and even receive payment from Synergy for any excess energy currently at 7c per KW hour.
4. Your lease payments will be used to pay back SUSI over a period of 10 years.  During that time, we hope to also receive profits for the VPP, while synergy prices are expected to rise.
5. Included in the price of your lease is the cost to install, upgrade, maintain and replace the systems as well as the VPP management service. The longer you lease the units the more of these benefits you receive as well as potential future profits from the VPP.
6. Once SUSI is paid, the community not for profit project will fully own the assets, and at that point the lease payments can be significantly reduced.
7. For every system installed REDBACK energy will put $250 into a community fund. This will fund a community project in our community and is mentioned on your survey.