Discover Energy VPP: An Independent Review

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Note: This review is based on Discover Energy’s own published Virtual Power Plant Terms & Conditions (V3.0.3, 22 March 2022) and associated product information. It is intended to provide factual, independent detail for customers considering participation.

VPP Overview

Discover Energy are a relatively new electricity retailer with ties to leading solar and battery distributer One Stop Warehouse. Their Virtual Power Plant (VPP) is a program that allows the company to remotely control participating customers’ batteries and inverters for grid and market purposes. In exchange, customers receive bonus feed-in tariff credits for exports triggered by Discover Energy during VPP events.
There are no hardware purchase obligations — customers can join with an existing compatible battery system or, in some cases, purchase and install one through a partner.

Two key conditions stand out compared to some other VPPs:

  • The maximum inverter capacity allowed is 10 kW.
  • Participation is only available if you have a Discover Energy retail electricity account.

Learn more about how VPPs work.

Financial Benefits Offered

Discover energy pays 25 cents per kWh plus 50% of wholesale market profit during a VPP Event where they take control of your battery.

The 25 cents for each kWh exported from the battery is much more attractive that most feed in tariffs available on the market, although it is less than what many consumers will be buying power for. This means it might be better to self-consume your power from the battery than let Discover Energy use it.

The 50% of wholesale market profit, effectively means that Discover Energy will pay back 50% of the profit they made from controlling your battery. This is a good in theory, but the profit calculations are not disclosed so its unclear how much this would be in practice. We can assume that Discover Energy will deduct the 25cents they pay you and any other trading fees before the profits are calculated.

Electricity Tariff / Rates

To join the Discover Energy VPP, you must choose from any available Discover Energy electricity plans in your area. One attraction is that Discover Energy also offer attractive rates for regular solar feed in tariff outside of VPP events:

ConditionSolar Feed In Tariff
First 3.28kwh exported per day: 30 cents per kWh
Next 3.28kwh exported per day: 18 cents per kWh
All remaining kwh exported per day: 9 cents per kWh

These feed in tariffs could make the program very attractive for homeowners with a 10kW solar inverter and large amounts of export solar power on a daily basis.

Battery and System Requirements

To join, customers must have:

  • Batteries must connect via on of the following inverter brands: GoodWe, Sungrow, Solar Edge, Alpha ESS, Growatt, QCELLS and Huawei
  • Maximum inverter capacity of 10 kW.
  • A functioning solar PV system with a smart meter capable of remote reads.
  • Reliable Wi-Fi connection (Discover recommends a dedicated communications device, such as an internet dongle, to avoid dropouts).
  • A valid grid connection agreement allowing export.
  • A Discover Energy retail electricity account in your name.

You cannot join if:

  • Life support equipment is installed at your property.
  • You are in another VPP or certain demand response programs.
  • You receive a premium government feed-in tariff.
  • You or a resident rely on electricity for medical treatment where interruptions could be harmful.

Contract Length and Exit Terms

Overall there are no exit fees on minimum terms as you can leave the program at any time with 10 business days notice.

If you leave, you keep an credits that are on your account. The VPP agreement technically runs for 1 year which means Discover Energy can’t change their rates during this period.

Technical Operations

By joining, you give Discover Energy the right to:

  • Discharge your battery (Discharge Events)
  • Charge your battery (Charge Events)
  • Apply zero export limits
  • Bypass charging/discharging
  • Perform demand management and frequency control
  • Update system firmware/software

Discover Energy customers can opt out of a single VPP event, but if you opt out of more than one per month, Discover Energy may end your participation.

There is no guaranteed minimum state of charge the battery will retain for your own use after an event. Discover is not liable for any impact on battery lifespan or warranty from participation.

Customer Support & App Experience

Discover Energy disclose the energy usage and VPP events on their electricity bill. They also have an app which is rated pretty highly, although has only 30 reviews on the Google Playstore.
The app has visibility over the solar systems performance as well as your electricity billing.

Pros & Cons of Discover Energy’s VPP

ProsCons
No upfront cost to join if you already have a compatible system.Feed-in rate can be changed with just 5 business days’ notice.
Ability to cash out credits above $100.No fixed payment or minimum earnings guarantee.
Flexible opt-out for individual VPP events.Opting out of more than 1 event/month may get you removed from the program.
Compatible with multiple inverter brands.No minimum battery reserve — system can be drawn down to 0%.
No stated annual kWh cap on VPP-triggered exports.Discover not liable for battery wear or warranty impacts.
Jeff Sykes