AGL Virtual Power Plant (VPP): 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:

BYOB (Bring Your Own Battery) — rolling 12-month services term; no exit fee in the services agreement.
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.

Compare AGL electricity plans (required for AGL VPP)

You must be on an AGL electricity plan to participate in AGL’s VPP; the VPP terms form part of your AGL Electricity Supply Contract.
Your solar feed-in tariff still applies under your chosen AGL plan. During VPP events, AGL also credits $1.00/kWh for controlled energy (reconciled annually, capped at 250 kWh/year).
Plan rates and FiTs vary by state and plan type (single-rate, time-of-use, demand where offered). Compare current AGL plans below.

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

Battery & System Requirements

Brand	Battery models	Inverter requirement
LG Home Battery	RESU 16H, RESU 10H	SolarEdge inverter: HD-Wave, Genesis, StorEdge, or Energy Hub.
Tesla	Powerwall 2, Powerwall 3	(Tesla system; no separate inverter listed).
SolarEdge	SolarEdge Energy Bank Battery, SolarEdge Home Battery	SolarEdge 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.

AGL VPP – Services Agreement Terms & Conditions (July 2025)
AGL VPP – Supply & Install Terms (July 2025)

Contract Length & Exit Terms

Option	Term	Renewal	Exit fee
Bring your own battery (BYOB)	12 months	Auto-renews	None in the services agreement
AGL-supplied battery (you get an upfront discount)	5 years	Fixed term	Pro-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.

Pros & Cons of AGL’s VPP

Pros	Cons
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.

About
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James Shand

Marketing Manager at Solar Choice

With half a decade experience in the solar energy industry, specialising in business strategy and marketing for solar companies. He has worked with top solar distributors in Canada and now collaborates with solar manufacturers and installers across Australia via Solar Choice, Australia's leading solar comparison platform. With degrees in business technology, science, and marketing, James combines in-depth market insights with technical knowledge, positioning him as a trusted authority in renewable energy.