Virtual power plants can slash electricity bills, help soak up rooftop solar and reduce the need for billions of dollars in new energy infrastructure.
But the Australian Competition and Consumer Commission’s latest Inquiry into the National Electricity Market found that despite the rapid growth in household batteries, only around 24 per cent of battery owners participate in a virtual power plant.
That’s despite the regulator finding that VPP customers generally have lower electricity bills.
In 2025–26, customers with a solar and battery system had median annual bills that were between $329 to $909 (20-52%) lower than regular customers, while those participating in virtual power plants had median annual bills that were between $762 to $1,093 (57–63%) lower.
For Robbie Campbell, CEO of Plico, the problem isn’t that Australians don’t like virtual power plants. It’s that most companies are trying to sell them too late.
“VPPs are a really hard sell once your solar and battery system has already been installed, and you come along as a retailer post the installation, and you try and sell that virtual power plant to the customer afterwards,” Campbell told the SwitchedOn Australia podcast.
“The value proposition seems very small in comparison to what you’ve already just paid for your beautiful solar and battery system.”
You can listen to the full episode here: SwitchedOn podcast: Why the booming home battery market is staying clear of virtual power plants
Most VPPs have been added to an existing energy retail or battery business. A household buys an expensive solar and battery system, becomes accustomed to controlling it and is then approached, often by a different company, with an offer to surrender some of that control in return for a relatively modest payment.
Plico reversed that order. Founded in Western Australia in 2017 it was established specifically to create a virtual power plant, with solar, batteries, finance, and customer support all designed around that goal.
Campbell believes that fundamentally changes the conversation: “it becomes one holistic approach to the problem, not an afterthought.”
Under the Australian Energy Market Operator’s Step Change scenario, around 53 per cent of battery owners would participate in a VPP by 2050. AEMO estimates that level of coordination could avoid around $7.2 billion in additional generation and network investment.
Failure to reach that level of participation will mean building more large-scale storage and other infrastructure instead.
So why, when VPP participants appear to be saving more money, have most battery owners remained reluctant to join?
Campbell says trust is one of the biggest barriers.
“Anyone who is effectively letting another party control their pride and joy, which is their solar and battery system, they need to be able to trust that party is doing the right thing.”
For Plico, that means the VPP has to deliver obvious value from the outset, not simply ask customers to surrender control.
Plico offers customers the option of buying their solar and battery system outright or financing it over five to ten years, with repayments designed to be lower than their previous electricity bills.
“Essentially, our objective is to provide our customers with a package that is less than their current electricity cost, so that they can save money from day one.”
The longer relationship also gives Plico responsibility for the customer’s hardware, financing, and VPP service, rather than simply providing electricity retailing.
That integrated approach may become increasingly important as governments look to increase VPP participation.
The ACCC warns that joining a VPP requires customers to hand over some control of an expensive household asset, while limited interoperability means many batteries cannot easily switch between providers. It recommends stronger consumer protections and reforms designed to build trust in VPP operators.
Campbell agrees that trust and value go hand in hand: “Trust in the operator and the value to the customer is the two essential pieces in the puzzle.”
Plico’s experience should also be viewed in context. Western Australia operates outside the National Electricity Market and has different market rules, retailers and incentives from the east coast.
The ACCC’s analysis relates to NSW, Victoria, South Australia and south-east Queensland, while the services Plico provides vary between WA and the NEM.
Even so, Campbell believes the broader lesson applies everywhere.
If virtual power plants are presented as an optional extra after a customer has already invested thousands of dollars in solar and batteries, they’ll remain a difficult sell.
But if they’re built into the proposition from day one, alongside finance, installation and ongoing support, they become part of the value customers buy, rather than something they’re later asked to give up control of.
You can listen to the full episode here: SwitchedOn podcast: Why the booming home battery market is staying clear of virtual power plants
If you would like to join more than 29,000 others and get the latest clean energy news delivered straight to your inbox, for free, you can click here to subscribe to our free daily newsletter.
