Thousands of Australian households with rooftop solar and a battery refuse to share their energy through virtual power plants, directly challenging a system regulators claim makes the electricity grid more efficient and lowers costs. This widespread refusal highlights a deep-seated desire for autonomy against increasing calls to cede control of private assets.
Chris Richardson, a homeowner in Frankston, Melbourne, operates what he calls his "own power plant," using solar panels and a battery. He initially sought to "save the planet" but admits most people install these systems to save money, which his setup has achieved by nearly eliminating his power bill and halving gas costs.
Richardson did join a virtual power plant (VPP), a network where an energy company manages his battery to sell electricity back to the grid. He initially felt wary when power was drawn from his battery at night, thinking, "Oh, they can't do this. This is not fair," yet conceded it made no difference to his personal costs.
Ceding Control
Despite the purported benefits, Australia's competition watchdog, the Australian Competition and Consumer Commission (ACCC), found that most people acquiring batteries under the Commonwealth's $7.2 billion subsidy scheme are spurning VPPs. Fewer than a quarter of customers installing batteries were signing up for such schemes, even though VPP participants were, on average, better off financially.
ACCC Deputy Commissioner Anna Brakey acknowledged consumer wariness but insisted it often paid off to "cede control." She stated that customers using a battery for their own purposes save 20 to 50 per cent compared to regular customers, while VPP participants see savings around 60 per cent.
Yolande Strengers from the Monash Energy Institute underscored the significance of coordinating household solar and batteries, calling it "not a trivial one." Australia boasts more than 4 million homes with solar panels, and almost half a million now include a battery, representing a unique global concentration of renewable capacity.
Professor Strengers argued that treating this capacity as a "coordinated resource" could improve overall system efficiency. This coordination, she suggested, could avoid the need for billions of dollars in grid upgrades and benefit customers unable to afford solar panels and batteries themselves.
The People's Resistance
However, Professor Strengers conceded that widespread acceptance of VPPs is "no sure thing." Many households, she noted, prioritize "greater independence and resilience in the energy system" and explicitly want to "take back control" of their own resources.
Simon Hackett, who runs Energy Autopilot, plans to launch a service later this year that aims to cut out the middleman, giving consumers direct access to the electricity market. He views VPPs as an outdated concept, rooted in the idea that large players must control batteries to support the grid.
Hackett identified two significant downsides to the VPP model. "One is you don't have control over those decisions; someone else does," he explained. "And you don't have control over the profits from that exercise; someone else does." This transfer of control and profit away from the individual homeowner is a core concern for those resisting the centralized model.
As battery size and sophistication grow while costs fall, Hackett sees every incentive for customers to sell excess power directly to the grid during peak demand. He asserts that households can now tap the wholesale market themselves, equipped with the technology to manage their own trading.
This shift, Hackett believes, transforms homeowners into a "genuine power plant," capable of buying and selling power "just like the big boys used to." He describes it as "an enormous change" and an "ability to do stuff for ourselves that's just never existed," empowering individuals against corporate dominance.
While dynamic retailers offering direct access to spot prices appeal to some, experts warn of risks due to price volatility. Hackett acknowledged that customers "might make a lot more money" or "might actually wind up paying a lot more money," but stressed the option to sign up with traditional retailers who accept that risk instead of the consumer.
Back in Melbourne, Richardson remains comfortable with his VPP decision, despite acknowledging he lacks complete control over his battery. He finds it difficult to explain to friends and colleagues, who often react as if he's joining a "Tupperware club," underscoring the public's skepticism towards ceding personal autonomy to centralized energy schemes.