AGL offers cheap finance to get batteries into homes, homes into its VPP

AGL Energy is dangling a new carrot to entice customers to join its growing virtual power plant (VPP), with the offer of low interest finance to help cover the cost of installing a home battery system – an essential ingredient for VPP participation.

AGL said on Wednesday it has partnered with Plenti Group to offer eligible prospective VPP customers discounted finance rates for home batteries, with support from the Clean Energy Finance Corporation (CEFC).

Eligible customers can apply for Plenti’s Green Loans to install a battery at an interest rate supported by finance from the CEFC’s $1 billion Household Energy Upgrades Fund, AGL says.

AGL’s virtual power plant (VPP) started out in South Australia in 2017 with backing from the Australian Renewable Energy Agency, to demonstrate how a network of connected energy storage systems can be coordinated to create value across a range of markets.

Thee batteries are be coordinated by a central control software system to work together like a traditional power plant. When combined, the energy stored in each home battery can be used to stabilise the electricity grid or shave demand at times of peak consumption.

From the trial’s end in 2022, AGL has expanded the VPP to Victoria, New South Wales and south-east Queensland, taking its total capacity to 1.25GW – and on track for a target of 1.6GW by 2027.

To be eligible for the AGL VPP, households must have a reliable internet connection, a smart meter, rooftop solar, and a compatible Tesla Powerwall, Sungrow High Voltage Battery, SolarEdge Energy Bank or LG Home Battery with a compatible SolarEdge inverter.

Already, AGL offers up to $1,000 off upfront costs when customers buy a battery or solar battery bundle through the gentailer or one of its third-party installers. Customers who already have a solar battery are offered $100 for signing up and $45 quarterly credits on their bill.

AGL chief customer officer Jo Egan says the offer of access to competitive finance is hoped to get more customers on board.

“We know that upfront costs of decarbonising your home can be a significant barrier for many and providing access to competitive finance means more people are able to upgrade to these technologies,” Egan said.

“Our aim is to deliver accessible, easy to understand and affordable energy solutions for our customers – no matter where they are on their electrification journey.

“Customers play an increasingly important part in the energy transition and core to AGL’s strategy is connecting our customers to a sustainable future,” Egan said.

Plenti chief, Adam Bennett, says bringing Australian households along on the renewables and electrification journey requires “whole of industry” collaboration.

“Through its long-standing partnership, Plenti and AGL have always remained committed to building and delivering solutions that make access to renewable energy easier and more affordable for households,” Bennett said.