Millions of renters in Australia are currently locked out of the clean energy revolution. However, a potential solution could soon change that, offering renters access to home batteries, previously out of reach due to cost and ownership barriers.
Australia’s energy companies are now exploring new models to make this technology available to those in rented accommodation.
While federal government rebates have successfully boosted home battery sales by 400% since their introduction in July, renters face challenges. With the high upfront costs, many renters simply can’t afford to install solar panels and batteries, nor can they expect landlords to invest in systems that won’t directly benefit them.
This issue has led to calls for more inclusive solutions that would allow renters to participate in the renewable transition without the burden of ownership.
Virtual Power Plants Could Offer Renters Access to Home Batteries
One proposed solution comes in the form of “virtual” power plants (VPPs), an innovative system where energy providers install and own the necessary hardware on customers’ homes.
According to AGL Chief Customer Officer Jo Egan, this model would allow renters to benefit from solar energy and battery storage without having to invest in the technology themselves.
VPPs function by connecting hundreds or thousands of homes with rooftop solar panels and batteries into a single network. This network can be used to send electricity back to the grid when demand peaks, effectively turning individual homes into a collective, distributed power plant.
These systems not only reduce electricity costs for participating households but also provide a more efficient and sustainable way to manage energy consumption across the grid. By leveraging the power stored in home batteries, energy companies can avoid building new, expensive infrastructure like gas plants or large-scale storage facilities.
Energy Companies See the Value in Renter-Inclusive Solutions
The economic benefits of VPPs are already clear, with major players like Origin Energy seeing huge potential in integrating home batteries into their networks.
As Jon Briskin, General Manager of Retail at Origin Energy, points out, the large scale of home battery storage could be key to reducing overall energy costs while making the system cleaner and cheaper. This shift could ultimately lead to lower electricity prices for all consumers.
For renters, a VPP model could be a game-changer. It offers the promise of affordable, sustainable energy without the hefty price tag of installing a full solar and battery system. Energy providers can also offer these benefits without burdening renters or landlords with the cost of installation, which has traditionally been a major hurdle.
As renters face increasing energy prices, such models could play a crucial role in enabling them to contribute to, and benefit from, the country’s renewable energy transition.
