This message first appeared in our August 2026 newsletter. To stay up to date with the latest news and research on energy issues that impact consumers, sign up to receive our monthly newsletter below.
There’s an obvious question at the heart of the debate about Virtual Power Plants (VPPs): if you’ve spent thousands of dollars on a household battery, how comfortable are you handing control of it to someone else?
It’s an important question because VPPs are expected to play a significant role in the energy transition. By coordinating household batteries, VPPs can supply electricity when the grid is under pressure, reduce system costs, and ultimately, help lower costs for everyone.
But there’s a catch: consumers have to want to take part.
One thing that stood out to me in research we released this month is how much trust matters. Almost three in ten battery owners who haven’t joined a VPP are concerned about losing control of their battery, and around one in four don’t trust energy companies or providers to manage it. More than a third simply say they don’t know enough about how VPPs work. You can watch our video that breaks down the results.
I don’t know about you, but I don’t find any of that especially surprising.
People buy batteries first and foremost to save money, but they also value the independence and security they provide. Asking them to give a third-party control of that asset is therefore a significant proposition. They need to know what they are signing up for, what they will get in return and, importantly, if the arrangement will work in their best interests.
There is good reason to think consumers will participate when we get this right. Our research found that three quarters of households, when asked to choose, prioritise saving money over maximising energy self-sufficiency. There is clearly an opportunity for VPPs if the offer is simple, worthwhile and trusted.
That is why we are calling on Energy Ministers to adopt a consumer duty that includes provisions for VPPs, requiring providers to protect customers from harm and deliver fair outcomes.
The opportunity here is considerable, but so is the responsibility. If consumers are going to provide value to VPP operators and the energy system, they should be properly protected and receive a fair share of that value. Get that right, and VPPs can work for households, as well as the system. Get it wrong, and we shouldn’t be surprised if people decide they’d rather keep control of their batteries themselves.
