Let’s say it’s a hot night. Everyone turns on their air conditioning. This creates a sudden spike in demand for electricity. To help the grid meet this demand, AGL may run a VPP event and ask your battery to export some of its stored energy.
For example:
- Your battery exports 10 kWh during the event
- AGL pays you $1 per kWh
- VPP event credits = 10kWh x $1 per kWh = $10. So you earn $10 in bill credits.
Because your battery was used to support the grid, you may then need to use energy from the grid that you would have otherwise used from your battery. For example, suppose that you needed to buy an extra 10 KwH from the grid, at a cost of 40 cents per KwH.
- Extra energy cost = 10 kWh × $0.40 = $4
So while you earned $10 in credits, the event may have caused you to use $4 worth of extra energy from the grid. That means:
- Your actual saving = $10 – $4 = $6
We calculate your credits from all VPP events across the year and pay them out at the end of your 12-month period or contract.
You’ll always come out ahead on your bill from participating in AGL’s VPP.