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Australia's largest virtual power plant
With the support of the Government of South Australia, AGL, Tesla and electricity retailer Energy Locals are developing South Australia’s Virtual Power Plant (SA VPP), a network of thousands of solar and home battery systems across South Australia, all working together to form Australia’s largest virtual power plant.
SA VPP is designed to provide more affordable, reliable and secure electricity for all South Australians, while increasing homeowners’ visibility of their energy use, and supporting South Australia’s transition to a renewables-based economy.
About South Australia's Virtual Power Plant (SA VPP)
What is a virtual power plant?
A virtual power plant (VPP) is a network of distributed energy resources – such as homes with solar and battery systems – all working together as a single power plant.
The VPP operator uses WiFi technology and sophisticated software to charge or discharge energy from the batteries and trade it on the National Energy Market (NEM).
With many systems working together, small amounts of energy stored in individual home batteries can become large amounts of energy to help support the grid in times of need. The capacity and power of a VPP can sometimes match or even exceed a traditional power station.
SA VPP is a growing network of homes with solar and home battery systems across South Australia.
Unveiled in 2018, SA VPP is demonstrating how virtual power plants can help reduce energy costs for participating households and support the grid in ways that reduce energy costs for South Australians more broadly.
Tenants of more than 6,500 SA Housing Trust homes already benefit from SA VPP, with the capacity to expand further.
SA VPP and grid stability
SA VPP is demonstrating how virtual power plants and other distributed energy resources can operate in the future.
SA VPP was the first virtual power plant in Australia to help stabilise frequency levels in the grid. The stability services SA VPP provides have already helped with significant events such as:
- a power station trip in Queensland in October 2019
- providing power to Port Lincoln residents during catastrophic fire conditions in November 2019
- high and low frequency issues in the grid in December 2019
- outages of interconnectors between South Australia and Victoria in November 2019, January 2020, and November 2022.
By demonstrating grid stability services, SA VPP has created a path for other distributed energy resources to also provide important grid services that have previously only been provided by centralised, more traditional equipment.
Who is involved in South Australia’s Virtual Power Plant?
AGL owns and operates SA VPP, and works with the South Australian government to provide offers to tenants of eligible SA Housing Trust homes to join the project.
Tesla originally designed and developed SA VPP, and transferred ownership of the project to AGL in 2025. Tesla is still involved in the project and manages the installation and maintenance of solar and Tesla Powerwall home battery systems on South Australian homes that have joined SA VP, on behalf of AGL.
Energy Locals is the electricity provider and retailer for all households participating in SA VPP.
The Government of South Australia supported earlier phases of the project through a $2 million grant, and $20 million loan from the Renewable Technology Fund and $10 million grant from the Grid Scale Storage Fund. Earlier phases were also supported by:
- an $8 million grant provided by the Australian Renewable Energy Agency
- a $30 million loan provided by the Clean Energy Finance Corporation.
The Government of South Australia is working with AGL, including to identify SA Housing Trust homes suitable for the project.
Information for SA Housing Trust and community housing tenants
There is no need for SA Housing Trust tenants to register their interest to join SA VPP.
AGL and the South Australian government are following a detailed process to identify suitable SA Housing Trust homes to participate in SA VPP. Tenants living in suitable SA Housing Trust homes will receive information from the government and AGL to let them know their home has been shortlisted and how to join.
SA VPP is open to tenants of community housing providers. More information can be obtained by visiting agl.com.au/communitypower or phone AGL on 08 8299 6171.
If you are an SA VPP customer and have a question about your electricity supply or your electricity bill, phone Energy Locals on 08 7078 8082.
If you are an SA VPP customer and have a question about battery or solar at your home, contact the Tesla customer support team via email: PowerwallSupportNA@tesla.com or phone 1800 646 952.
If you have any questions about the South Australian government's role in the project, contact us on vpp@sa.gov.au or call the VPP hotline on 08 8226 2414. Alternatively, you can send us mail addressed to GPO Box 618, Adelaide, South Australia 5001.
SA VPP enrols SA Housing Trust homes where a home energy system can be safely installed and operated for years to come.
Because of this, homes go through a detailed selection process.
Step 1
A review of SA Housing Trust property information like size, type, age, condition, and economic life of the building, to create a list of possible homes.
Step 2
A discussion of the listed locations with SA Power Networks (SAPN), to identify any homes that should be prioritised so that they can help provide grid support services.
Step 3
A review of online aerial photos for the listed homes to create a shortlist of tenants to receive an invitation for a free site assessment.
Step 4
For tenants that accept the invitation, a site assessment to confirm the site is completely suitable for a home battery installation, with or without solar.
Steps 3 and 4 consider all the technical details required for a safe and well-performing installation, including things like suitable roof space, a suitable and safe location for a battery, little to no roof shading, and electricity meters, meterboards, and switchboards that are suitable or can be easily upgraded.
A home has to pass all four of these steps to be able to join SA VPP.
SA Housing Trust tenants shortlisted to participate in SA VPP will receive information about how to join the program. This may include:
- A letter and/or email and/or phone call from the Government of South Australia
- An invitation from AGL
- SMS text sent to their mobile phone
Shortlisted homes are contacted in a staged approach, based on location.
There are a number of reasons why a property might not be shortlisted for SA VPP, including property type, age, or condition, the available space for solar panels or a battery, shading on the roof, and the condition and type of existing electricity meters, meterboards, and switchboards.
If you are a SA Housing Trust tenant in a home that hasn’t been shortlisted for SA VPP, there are still many steps you can take to lower your electricity bills:
- Check if you are eligible for South Australian government energy bill concessions
- Check if you are eligible for the SA Concession Energy Discount Offer
- Compare your electricity retail plan with others at Energy Made Easy
- Take some simple measures to lower your usage with some easy energy saving tips
SA Housing Trust tenants shortlisted to participate in SA VPP will receive an exclusive invitation from AGL with a special website address and phone number listed on the invitation. Complete the sign up form on the website to accept your invitation and AGL will arrange a site assessment of your home to ensure it is suitable for the program.
Joining SA VPP is your chance to lower your electricity bills, and be part of Australia's largest virtual power plant making energy more sustainable, affordable, reliable and secure for South Australians.
As a SA VPP customer you will have a home battery, with or without solar, installed and maintained at your home, at no cost to you. In return, you will enjoy:
- Lower electricity prices - exclusive rates for electricity that have been set at a price 25% lower than the regulated Default Market Offer (DMO) and are the lowest residential electricity rates in South Australia guaranteed (based on model usage of 4,000 kWh/year on an anytime tariff and generally available single rate offers for residential customers in South Australia).
- Blackout protection - home battery reserved to back up your home in a power outage.
- Sustainable electricity - access to renewable energy from assets that support South Australia's transition to a renewables-based economy.
It is important to remember that you will continue to pay for all the electricity you use – whether it comes from the solar, battery or the grid – but it will all be charged at the low electricity rate only available for SA VPP customers.
SA VPP’s electricity rate is even lower than the SA Concession Energy Discount Offer, and has been set at a price 25% cheaper than the DMO electricity price, as set by the Australian Energy Regulator (AER) (based on model usage of 4,000 kWh/year on an anytime tariff for residential customers in South Australia).
Note: Energy Locals and AGL review this offer to ensure it is the lowest generally available single rate residential offer in South Australia. If an energy retailer generally releases and offer with a lower rate, Energy Locals and AGL will reduce their offer to align with the cheaper competitive offer. Visit agl.com.au/communitypower to find out more.
Note: A SA VPP customer with 'model usage' could save up to $575 (including GST) off their annual electricity bill in the 2025–26 financial year, while generating clean energy for the community and supporting the grid (based on the annual saving estimate for a residential customer with an annual energy consumption of 4,000 kWh/year on an anytime tariff with rates at a price 25% below the DMO). Actual savings will vary depending on factors including the customer's usage, rates and the DMO. Customers may also wish to consider the impact of eligibility for energy and/or cost of living-related concessions.
Depending on your electricity usage, you could save money by joining SA VPP.
SA VPP customers can access electricity rates that have been set at a price 25% below the Default Market Offer (DMO) electricity price as set by the Australian Energy Regulator (AER) (based on model usage of 4,000 kWh/year and an anytime tariff for residential customers in South Australia). You will also have the home battery to power your home for a period in the event of an outage.
Everyone should make their own decisions about the best electricity plan for their households. A simple way to do this is to compare your options at www.energymadeeasy.gov.au
You can also ask Energy Locals to provide an estimate of your savings by joining SA VPP, just by sending a copy of your recent electricity bill to them at savpp@energylocals.com.au
Any change will depend on the features of the electricity contract you had before, how much electricity you use, and if your electricity use changes after joining SA VPP.
Note: A SA VPP customer with 'model usage' could save up to $575 (including GST) off their annual electricity bill in the 2025–26 financial year, while generating clean energy for the community and supporting the grid (based on the annual saving estimate for a residential customer with an annual energy consumption of 4,000 kWh/year on an anytime tariff with rates at a price 25% below the Default Market Offer (DMO). Actual savings will vary depending on factors including the customer's usage, rates and the DMO. Customers may also wish to consider the impact of eligibility for energy and/or cost of living-related concessions.
Households that have signed up to the SA Concession Energy Discount Offer can still join SA VPP.
However, by choosing to join SA VPP, you will move off of the SA Concession Energy Discount Offer and move on to the SA VPP energy plan.
If you are already an SA Concession Energy Discount customer and you want to join SA VPP, you are encouraged to compare both electricity plans carefully, as joining SA VPP may reduce your electricity bills further, but this will depend on the alternative options available to you.
Since the solar and home batteries in SA VPP need to work together, signals are sent to the batteries remotely via software. Home internet connections (Wi-Fi or Ethernet) are the best way to do this quickly and reliably, as they typically have stronger signals than cellular (that is, “mobile internet”) connections.
SA VPP systems will use less than 2 GB of data each month.
No. By agreeing to join SA VPP, you’re allowing the home energy system access to your home internet connection to use that stronger signal to provide a smoother SA VPP experience for you and everyone else on the program. Further information will be provided during the installation process or can be obtained by phoning AGL on 08 8299 6171.
If you are a SA Housing Trust tenant and you chose to leave SA VPP after a home energy system has been installed on the property, the system will be reconfigured to provide no benefit to the property.
If the system is reconfigured, all the energy generated and stored will instead be exported to the grid to continue to provide benefits to other households participating in SA VPP and you will not get power from the battery in an outage. It is likely the home energy system will remain on your property, even though it will not be used by your property.
The energy system installed at your home is designed to provide power when there is an outage. However depending on your energy use and the type of life-support equipment you have, there may not be enough energy stored in your battery to power your equipment for the duration of the outage.
If you decide to join SA VPP, Energy Locals will ask you to provide information about any life support equipment you have. Please ensure Energy Locals has this information, and is aware of any changes to your circumstances.
You can learn more about power dependency for critical care medical equipment in the home in the SA Health website.
What are the benefits?
Joining SA VPP is your chance to lower your electricity bills, and be part of Australia's largest virtual power plant making energy more sustainable, affordable, reliable and secure for South Australians.
As a SA VPP customer you will have a home battery, with or without solar, installed and maintained at your home, at no cost to you. In return, you will enjoy:
- Lower electricity prices - exclusive rates for electricity that have been set at a price 25% lower than the regulated Default Market Offer (DMO) and are the lowest residential electricity rates in South Australia guaranteed (based on model usage of 4,000 kWh/year on an anytime tariff and generally available single rate offers for residential customers in South Australia).
- Blackout protection - home battery reserved to back up your home in a power outage.
- Sustainable electricity - access to renewable energy from assets that support South Australia's transition to a renewables-based economy.
It is important to remember that you will continue to pay for all the electricity you use – whether it comes from the solar, battery or the grid – but it will all be charged at the low electricity rate only available for SA VPP customers.
SA VPP’s electricity rate is even lower than the SA Concession Energy Discount Offer, and has been set at a price 25% cheaper than the DMO electricity price, as set by the Australian Energy Regulator (AER) (based on model usage of 4,000 kWh/year on an anytime tariff for residential customers in South Australia).
Note: Energy Locals and AGL review this offer to ensure it is the lowest generally available single rate residential offer in South Australia. If an energy retailer generally releases and offer with a lower rate, Energy Locals and AGL will reduce their offer to align with the cheaper competitive offer. Visit agl.com.au/communitypower to find out more.
Note: A SA VPP customer with 'model usage' could save up to $575 (including GST) off their annual electricity bill in the 2025–26 financial year, while generating clean energy for the community and supporting the grid (based on the annual saving estimate for a residential customer with an annual energy consumption of 4,000 kWh/year on an anytime tariff with rates at a price 25% below the DMO). Actual savings will vary depending on factors including the customer's usage, rates and the DMO. Customers may also wish to consider the impact of eligibility for energy and/or cost of living-related concessions.
Watch Tesla's video: Why join South Australia's Virtual Power Plant
Hear from a customer already saving with SA VPP
Over 5,500 Housing SA tenants are already benefiting from being part of SA VPP. Meet customer Norman Poppitt and hear his story in this video.
Contact
If you are an SA VPP customer and have a question about your electricity supply or your electricity bill, contact Energy Locals on 08 7078 8082.
If you are an SA VPP customer and have a question about battery or solar at your home, contact the Tesla customer support team on PowerwallSupportNA@tesla.com or 1800 646 952.
If you have any questions about the South Australian government’s role in the project, contact us on vpp@sa.gov.au or call the VPP hotline on 08 8226 2414. Alternatively, you can send us mail addressed to GPO Box 618, Adelaide, South Australia 5001.
Further information about AGL's role in the project can be found at agl.com.au/communitypower or by contacting AGL on 08 8299 6171.
