Joining a virtual power plant is a contract with an operator or electricity retailer, and contracts have lengths. The questions to ask are practical ones: how long, what does leaving cost, and what do I give back.
Contract length
Terms range from rolling month-to-month arrangements to fixed commitments of a year or more. Longer terms often come with a larger sign-up credit. State incentives can add their own minimum, because a government scheme may require the battery to stay connected for a period before the incentive is considered earned.
Can you leave?
In most cases you can, but there are three ways leaving can cost money:
- Exit fee. A flat fee or a fee that falls over time.
- Clawback of the credit. If you received a sign-up credit and leave before the term, the operator may recover part or all of it.
- Loss of tariff. The better feed-in or import rate may be tied to being a participant, so leaving can change your bill.
If the contract is silent on any of these, ask. A clear answer in writing is a good sign. An evasive one is information as well.
What does not change when you leave
The federal STC discount was paid through the installer when the battery went in. It is a discount on your invoice, not a payment from the VPP, so leaving does not undo it. A state incentive that depends on staying connected is a different case: check its rules before you disconnect.
A short checklist before signing
- Minimum term and renewal rules, including auto-renewal.
- Exit fee, if any, and how it is calculated.
- Whether credits are repayable.
- Notice period and how to give it.
- What happens if you move, sell the property or change retailer.
- Whether the operator can change the terms, and how you are told.
What this means for homeowners
Do not sign a VPP agreement on the day of installation just because the installer’s paperwork includes it. The battery works without one, and your discount is already counted. Take the contract home, compare it with two alternatives and sign when you are comfortable. Our pillar page on battery STCs explains what the federal program does and does not require.
What this means for installers
If you sell a battery bundled with a retailer’s VPP offer, separate the two in your paperwork. A customer who later discovers an exit fee will blame the whole sale. The STC claim itself should be unaffected, and a clean claim lodged promptly is paid at the rate published on /pricing/. When you want to start lodging, see /start-trading/, and the battery submission guide covers the paperwork.