If you've invested in solar panels and a home battery, you already own a small piece of the clean energy future. But did you know your battery could do more than power your home?
That's where virtual power plants, often shortened to VPPs, come in. And we're pleased to announce that we're partnering with Axle Energy to offer VPPs to customers who already have solar and battery storage installed.
In this guide, we explain what a VPP is, how it works, and what it could mean for you.
A virtual power plant is a network of home batteries, solar panels, electric vehicle chargers and other smart energy devices, all linked together using software.
There is no giant building or chimney. Instead, thousands of ordinary homes work together as one flexible energy source. When the grid needs a little extra power, or needs people to use less, the VPP can respond in seconds by drawing on the batteries in its network.
Think of it as a team effort. One home battery makes very little difference to the national grid. Thousands of them acting together can make a real impact.
A VPP works in four simple steps:
All of this happens automatically in the background, so you don't need to watch prices or press any buttons.
The UK is generating more electricity from wind and solar than ever before. That's great news for the planet, but renewable energy depends on the weather. Some days there is more power than we can use. On other days, especially cold, still evenings, there is not enough.
This creates two problems:
Traditionally, the answer was to switch on gas-fired power stations. VPPs offer a cleaner, cheaper alternative by using the energy that is already stored in homes across the country. This is often called demand response or energy flexibility, and it's a key part of reaching net zero.
1. Potential to earn from your battery. VPP providers pay customers for the flexibility their batteries provide. With Axle, you will earn £120 per year (£10 per month) guaranteed. Depending on how much energy you export during grid events, you could earn even more.
2. Lower energy bills. By charging when electricity is cheap and clean, and using or sharing stored power when it's expensive, your battery can work harder for you.
3. Get more from your solar and battery investment. A VPP can help your battery earn its keep, shortening the time it takes to see a return on your system.
4. Support a greener, more stable grid. Every kilowatt-hour you share at peak time helps reduce the need for fossil-fuelled power stations.
5. No extra hardware needed. If you already have a compatible home battery and a smart meter, you are ready to go.
We have always focused on making clean energy simpler and more affordable for households. Our new partnership with Axle Energy is the next step.
Axle Energy is a flexible energy company that connects home batteries and other smart devices into a VPP.
Through this partnership, customers who have installed solar panels and a battery through us can.
Eligibility depends on the provider, but you will usually need:
Will a VPP drain my battery?
No. Axle operates within your battery manufacturer's safety limits, automatically keeping at least a 10% charge in reserve during a grid event so your battery is never fully emptied. You remain in 'Event Only' mode to manage your daily charging routine, and you can opt out of any upcoming event if you need your full capacity.
Will it affect my battery's lifespan?
No. Axle's software strictly operates within your battery manufacturer's approved safety limits. Participating in these short grid events closely resembles the normal daily charging and discharging cycles your system is already designed to handle. Because Axle works entirely within these set technical and safety parameters, participating will not hurt your battery, negatively impact its lifespan, or void your manufacturer's warranty.
Can I still use my Smart Export Guarantee (SEG) tariff?
Yes. Most people can keep their current energy supplier, existing tariff, and SEG arrangement exactly as it is. Axle works alongside your setup, so your standard SEG payments will continue as usual. The only exception is if you're on a specific energy tariff that already takes direct, automated control of your battery's daily schedule, which may not be compatible. Axle will ask a customer to upload a recent electricity bill. They will use it to automatically check your tariff details and ensure the setup is fully compatible before finalising enrolment.
Is joining a VPP safe? Yes. VPP providers connect to your battery securely, and they handle your data in line with UK data protection rules. See full privacy policy.
Can I leave if I change my mind?
Yes, completely. There are no exit fees, no long-term contract commitments, and no minimum notice period. You can leave the program at any time through your Axle online account page, and you will keep all the earnings you have accumulated up to that point (subject to the standard £10 minimum withdrawal threshold). See full terms and conditions
VPPs turn ordinary home batteries into a powerful, shared clean energy resource. For households with solar panels and battery storage, they offer a straightforward way to get more value from your system, while helping the UK move towards a cleaner, more reliable grid.