Here’s An Origin VPP Review

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Origin Energy's Loop Virtual Power Plant (VPP) offers payments for discharging your home battery into the grid, but it requires an Origin energy retail electricity plan.

Two Ways to Join:

  1. BYO Battery: Get $1 per kWh discharged, plus a $400 credit. Available in NSW, VIC, QLD, and the ACT.
  2. Buy from Origin: $240 yearly payment and $2,000 off the battery cost, but requires a five-year contract.


  • You pay for the discharged energy.
  • Lower solar feed-in tariffs.
  • Increased battery wear and limited personal use.

Overall, the long-term costs might outweigh the benefits.

Origin VPP Review: What You Need to Know

When considering a Virtual Power Plant (VPP), it’s crucial to understand the details and implications of the program you’re evaluating. In this Origin VPP review, we’ll dive into the specifics of Origin Energy’s ‘Origin Loop’ VPP, also known as Loop VPP. We’ll explore how it works, the options available, and why it might not be the best choice for everyone.

Understanding the Origin Loop VPP

A Virtual Power Plant (VPP) aggregates multiple home batteries to operate as a single, large power source. This setup allows a central authority, like Origin, to charge and discharge these batteries based on market peak demands. The goal is to optimise energy use and provide stability to the grid.

Origin’s Loop VPP pays participants for allowing Origin to discharge their batteries into the grid. However, you must be on an Origin retail electricity plan to participate.

How to Join the VPP

Two primary ways to join the Origin Loop VPP exist, each with different terms and potential outcomes.

1. Loop VPP BYO (Bring Your Own)

If you already own a Tesla Powerwall 2, you can join the Loop VPP BYO and receive $1 for every kilowatt-hour (kWh) that Origin discharges from your solar battery system. Here are the key details:

  • Payment: $1 per kWh discharged, up to a maximum of 500 kWh per year.
  • Sign-up Bonus: $400 energy bill credit.
  • Contract Flexibility: No long-term commitment; you can leave with 20 days’ notice.
  • Availability: NSW, VIC, QLD, and the ACT.

2. Buy a Battery from Origin

If you don’t have a battery, you can purchase one from Origin and join the Loop VPP. This option includes:

  • Annual Payment: $240 for discharging up to 200 kWh from your battery.
  • Discount: $2,000 off the cost of the battery if purchased before September 30, 2022.
  • Contract: Five-year commitment.
  • Availability: Homes within 50 km of Sydney, Melbourne, Brisbane, or Surfers Paradise.

origin vpp

Why the Origin Loop VPP Might Not Be a Good Deal

Despite the initial financial incentives, several factors make the Origin Loop VPP less attractive in the long run.

1. Costs of Energy Discharged

Participants must pay for the energy Origin discharges from their batteries, either through foregone solar feed-in tariffs or direct payment for grid electricity used to recharge the battery. This cost reduces the effective payment received from Origin.

2. Low Solar Feed-In Tariffs

Origin’s solar power feed-in tariffs are generally lower compared to other providers. This can result in significant financial losses over time, especially if you’re locked into an Origin plan for five years.

3. Battery Wear and Tear

Frequent charging and discharging by Origin can accelerate battery degradation, potentially shortening its lifespan and increasing replacement costs.

4. Limited Use of Your Battery

Origin can prevent you from using stored energy in your battery to reserve it for their benefit. This limitation can leave you dependent on grid electricity, especially during peak times.

5. Backup Power Concerns

For those relying on their battery for backup power during outages, Origin’s control over your battery’s charge levels can leave you vulnerable to blackouts with insufficient stored energy.

6. Long-Term Commitment

The five-year contract can be restrictive, especially with the potential for better offers or technological advancements in the near future. The pressure to act quickly because of promotional deadlines can lead to hasty decisions.


While the Origin Loop VPP offers some upfront financial incentives, the long-term drawbacks and hidden costs make it less appealing for many households. Before committing, consider other VPP options and evaluate your overall energy needs and goals. Taking your time, educating yourself, and choosing a solution that aligns with your long-term interests is essential.

In summary, this Origin VPP review highlights the complexities and potential downsides of the Loop VPP. By understanding these factors, you can make an informed decision about whether this program is right for you.

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