Virtual power plants

About virtual power plants (VPPs)

VPPs are operated by energy retailers who use software to connect groups of consumer owned batteries across many homes to allow the excess stored power in that group of batteries to be sold back to the grid during times of peak demand. VPP programs are generally offered as part of a market retail energy contract. The contract terms, operation of the VPP, and the billing of VPP rewards and charges may vary between energy offers.

Complaints about VPPs 

EWON saw a significant increase in complaints about VPPs in FY26 due to the Commonwealth and NSW Government programs incentivising the rollout of batteries and participation in VPPs. However, it is increasingly difficult to identify if a complaint is related to the operation of a VPP, until information is provided from the retailer.

Our review of VPP complaints revealed several broad themes.

Disputes about the calculation of VPP credits and charges 

VPPs are complex products that rely on software to control a customer's inverter and battery to use, store and export the customer's solar energy at different times, maximising the benefits available through energy market participation. Customers usually interact with the VPP throught a retailer's app/online portal, which provides information about the energy they generate, store and export to the grid. Customers participating in VPPs also have access to their energy data from multiple sources, for example, they will get energy data from:

• their own CER devices such as the data provided by the customer’s own inverter or battery system 

• their energy retailer’s mobile app or online portal, often providing them with live data on the energy they are using, generating and exporting 

• third-party mobile apps or home energy management systems – often the solar, battery and EV Charging systems installed at a customer’s home may be orchestrated by third party software such as a mobile app. This software may be independent of the energy retailer’s system and be another independent source of energy data for the customer to navigate. 

• the customer’s energy bill also contains the energy data used by their energy retailer to calculate their credits and charges.

It is common for complaints to be partly driven by customer confusion when customers try to reconcile the energy data they receive from these multiple sources. Retail bills that include VPPs can be difficult to understand. For example, where VPP credits depend on wholesale electricity prices and the timing of energy exports, customers may struggle to verify how retailers have calculated credits and charges.

Complaints about the operation of VPPs

A significant proportion of the VPP complaints received by EWON last financial year related to whether the program operated as advertised or delivered the benefits customers expected.

A common complaint involved customers reviewing data from their battery system or retailer app and concluding that the VPP was exporting or consuming energy in a way that did not reduce their electricity costs. Customers also frequently raised concerns that the VPP regularly depleted their battery, leaving little stored energy available for their own use. The introduction of demand charge-based electricity tariffs has further complicated these issues and made it more difficult for consumers to assess whether their VPP participation benefits them financially. Demand tariffs are calculated by taking the total amount of energy used during a specified time eg how many kWh you used in a single 30 min period. This figure is then used to calculate an additional fixed charge.
 

Technical issues preventing customers from participating in VPPs

VPP providers have to manage a range of technical requirements to enable consumer-owned CER systems to participate in their programs. A significant proportion of VPP complaints received by EWON arose from technical issues that prevented customers from connecting to a VPP or participating as intended. Customers reported problems with device interoperability, software connectivity, system configuration and communications between battery systems and VPP platforms. Others experienced eligibility issues because their battery or inverter model was not compatible with the VPP program.


Delays starting or exiting a VPP program

Administrative or customer service delays during enrolment or when customers attempted to leave a VPP program. Customers who experienced lengthy enrolment delays often raised concerns about missed financial benefits or their inability to access the NSW VPP incentive. Customers who faced delays exiting a VPP program were concerned that they could not fully control their battery or that their continued participation restricted their ability to switch to a more suitable retail energy offer. 

Case studies

Case study one

 Customer concerned that operation of VPP is not to customer's benefit

Grant had rooftop solar and a battery and was enrolled in a retailer’s VPP program. One night in December 2025 at about 7pm, his battery was over 80% charged. He did not change his usage during this period or turn on any appliances that use a lot of electricity. However, the VPP imported electricity from the grid to his household at over $4 per kWh. This added about $50 in charges for a very short period, during which, Grant believed, he should have been able to use energy from the battery. Grant contacted his retailer to ask for an explanation, but it did not respond to his query.

EWON referred the complaint to a senior team at the energy retailer. Grant returned to EWON as he had still not heard from the retailer.

The retailer advised EWON that Grant’s battery type was still in testing phase with its VPP program, and this was disclosed to customers enrolling in the program. The retailer was working to improve performance and reliability by rolling out improvements over time. The retailer advised it could not review the data for the disputed evening in detail as too much time had passed. However, it was able to identify that energy was both drawn from the grid and fed back to the grid on the disputed evening. The energy retailer provided some potential explanations, for example, the VPP may have planned to import energy but then the price changed quickly. The retailer reviewed more recent VPP data in detail and did not identify any further problems.

The retailer offered a total goodwill credit of $150, which Grant accepted.