AGL Virtual Power Plant (VPP): An Independent Review

Note: This is an objective, fact-based review using AGL’s own disclosures and accessible documentation; no promotional bias is included.

AGL’s Virtual Power Plant lets AGL briefly control your home battery during “energy events” to support the grid. In return, you receive bill credits: a welcome credit, ongoing quarterly credits, and $1 per kWh for energy AGL moves to/from your battery during VPP events (reconciled annually). You must be on an AGL electricity plan; the VPP terms form part of your AGL Electricity Supply Contract.

Two ways to join:

  1. BYOB (Bring Your Own Battery) — rolling 12-month services term; no exit fee in the services agreement.
  2. AGL-supplied battery + discount — 5-year term with a pro-rata exit clawback if you leave early.

Learn more about how VPPs work.

Financial Benefits Offered

  • $1 per kWh for total energy charged/discharged during VPP events (annual credit). 250 kWh/year cap on AGL-controlled energy; at $1/kWh this caps event credits at $250/year.
  • Quarterly bill credits for staying connected (BYOB): NSW $20, QLD $20, SA $45, VIC $20.
  • Welcome credit (AGL advertises $200 on its VPP page).

Note: AGL applies these as bill credits on your AGL bill (not cash).

Compare the best VPPs in Australia

Electricity Tariff / Rates

You must be on an AGL electricity plan. Tariffs and FiTs depend on the plan you choose. Offers vary by location and change over time.

Battery & System Requirements

BrandBattery modelsInverter requirement
LG Home BatteryRESU 16H, RESU 10HSolarEdge inverter: HD-Wave, Genesis, StorEdge, or Energy Hub.
TeslaPowerwall 2, Powerwall 3(Tesla system; no separate inverter listed).
SolarEdgeSolarEdge Energy Bank Battery, SolarEdge Home BatterySolarEdge inverter: HD-Wave, Genesis, StorEdge, or Energy Hub.
  • Compatible brands (examples): Tesla Powerwall 2/3; LG RESU 10H/16H (with SolarEdge inverter); SolarEdge Home/Energy Bank with approved SolarEdge inverters.
  • Metering/export: If your battery is AC-coupled, a dual-channel meter is required. Your site must have a fixed export limit ≥ 5 kW.
  • Site prerequisites: dual-channel meter for AC-coupled systems; fixed export limit ≥ 5 kW; reliable internet via ethernet/Wi-Fi (not SIM 3G/4G/5G as primary).

Note: AGL’s separate Supply & Install Ts&Cs mention reserve rules for some brands (incl. Sungrow), but Sungrow isn’t listed in the VPP Services Agreement. Treat Sungrow as bundle/offer-specific unless AGL updates the official VPP compatibility list.

Contract Length & Exit Terms

OptionTermRenewalExit fee
Bring your own battery (BYOB)12 monthsAuto-renewsNone in the services agreement
AGL-supplied battery (you get an upfront discount)5 yearsFixed termPro-rata clawback of the discount if you leave early (you repay the unused portion). An example table is in AGL’s terms.
  • BYOB (Bring Your Own Battery): 12-month VPP Services Term that auto-renews. No exit fee in the services agreement. either party can end the BYOB Services Agreement with 30 days’ notice and there is no exit fee; any owed credits are paid pro-rata.
  • AGL-supplied battery with upfront discount: 5-year VPP Services contract. Pro-rata exit fee if you leave early (clawback of the “AGL VPP Payment”). Example table included in AGL’s terms.

Technical Operations

  • VPP event: Anytime AGL charges or discharges your battery (up to 10 hours).
  • Battery protection: AGL keeps a backup minimum—usually 20% for Tesla and similar models; for some SolarEdge + LG systems, it uses your inverter’s minimum setting.
  • Annual cap: AGL can move up to 250 kWh through your battery each year.
  • Credits: Your event credits are totaled and paid at the end of each 12-month term.

Customer Support & App Experience

The AGL app shows VPP events, credits and estimated bill savings; the Play Store listing highlights a battery dashboard with charge levels and event tracking.

AGL VPP battery Dashboard App

Pros & Cons of AGL’s VPP

ProsCons
Simple, predictable value stack: welcome + quarterly + $1/kWh event credits.Must be on an AGL plan (retailer lock-in).
Backup protection via minimum reserve and 250 kWh/year cap.Upside capped by the 250 kWh/year limit; event frequency varies.
BYOB path is a rolling 12-month term (no exit fee in the services agreement).5-year lock-in and pro-rata clawback if you take AGL’s upfront discount.
Clear app visibility for events and savings.Credits are bill credits (not cash) and event credits settle annually.
Broad Tesla/SolarEdge/LG compatibility; explicit metering/export rules reduce onsite surprises.Requires dual-channel metering for AC-coupled setups and export limit ≥ 5 kW.
James Shand

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