Electricity retailer Nectr is offering a “never before seen” feed-in tariff of 50c/kWh for energy sent to the grid between the hours of 4pm and 9pm, but only for customers who sign up to its new virtual power plant.
The deal, which also dangles a one-off $100 sign-up credit, marks the third VPP offering from Nectr – a subsidiary the South Korean-based, multi-billion-dollar solar and battery maker Hanwha Group.
Nectr says the aim of the new BEE Super FiT VPP is to “take the hassle out of energy sharing,” with the retailer using its smart energy algorithms to manage the export or dispatch of energy from a compatible solar and battery system.
According to the fine print, this means handing over most (if not all) of the control over the battery to Nectr, which is kind of the whole idea of VPPs, but not always an easy sell to customers who have invested in solar and storage to regain control over their power supply.
“This may limit the customer’s ability to change/control battery operations.” (Although the website notes that for batteries with back-up capabilities, it will always ensure there is a 20% reserve charge to use in case of power outages.)
This might sound like a leap of faith to some, but Nectr managing director, Tae Hong Kim, says this is the VPP plan that customers have been calling for – “and we have listened.”
“As home battery uptake continues to grow in Australia, we’re bringing innovative and industry-first deals to Australian customers to help them save money and have the peace of mind that their unused energy is never wasted,” Tae Hong Kim says.
“While VPP technologies are relatively new in Australia, homeowners across the country are laying strong foundations for a successful transition to renewables by investing in home solar and battery and joining a VPP plan to help share energy when it is needed most.”
No doubt, the offer of the 50c/kWh feed-in tariff – by far the most generous solar FiT that One Step Off The Grid can find among other retailers in the same states – aims to help build faith with customers.
But as One Step Off The Grid has explained in the past, highest is not always best. In this case it should be noted that Nectr’s market leading FiT is only on offer for five hours of each day, and at a time that may not suit the load profiles of some households. The prices offered for electricity supply should also be weighed up.
To this end, Nectr has also launched a “Savings Estimator” for solar and battery owners, on the Nectr website, that totes up the potential savings of participating in the VPP, according to the specific energy consumption and system details of each solar and battery owner.
“The BEE Super FiT is groundbreaking, and it’s something that we have designed specifically for our Aussie customers, because it demystifies earnings potential of individual battery owners by joining a virtual power plant,” Myung Shim, Nectr’s head of channel partnership tells One Step Off The Grid.
It is on offer to households with a solar system of no more than 13.4kW, with a battery of no less than 9.5kWh of storage capacity, and compatible with batteries from either AlphaESS, Qcells, SolarEdge, Sungrow or Tesla batteries. The website notes that it is currently working on incorporating Enphase and SolarEdge into the VPP.
“This improved visibility will lead to more efficient generation use, lower system costs, and potentially reduced energy prices for all consumers. It’s a win-win that doesn’t require changing behaviour, just smarter market operation.”
(Editor: I would sign up my microgrid for a deal like this. Art)