What is VPP?

Is your home's PV system still only making money by "saving on electricity bills"?

Let's start with a question: If 100 households in a community have installed PV panels, with more electricity generated than needed on sunny days and insufficient supply on rainy days, what should be done?

This is where VPP comes into play.

VPP, simply put, stands for "Virtual Power Plant". It is not an actual power plant but an "energy manager" — through a mobile APP or computer system, it connects the PV panels and energy storage batteries of thousands of households, assembling them like building blocks into an "invisible power plant".

For example, in a community in Munich, Germany, the PV panels of 200 households are connected via VPP: on sunny days when the electricity generated by everyone is more than needed, VPP sells the surplus electricity to the grid in a unified manner; on cloudy days when electricity generation is low, VPP will mobilize the energy storage batteries of each household to "allocate" the electricity stored previously.

As for how to distribute the money earned from selling electricity together, it's actually quite simple: the VPP platform acts like a "transparent account book", recording the amount of electricity contributed by each household in real time — the amount of electricity generated by your PV panels and the amount contributed by your energy storage battery are all clearly tracked.
The total revenue from electricity sales is first collected by the platform and then automatically distributed to each household according to their "contribution ratio".
For instance, if 2,000 Euros are earned from a certain electricity sale and your household provided 10% of the electricity, you will receive a share of 200 Euros, which is directly transferred to your bound bank card. In this way, no one has to worry about "wasting excess electricity or having insufficient supply", and everyone can share the money earned from selling electricity together.

And the VPP technology of Ktech Energy  is the key that enables your home's PV panels and energy storage batteries to smoothly join this "money - making alliance".

I. Don't Just Focus on "Saving Electricity Bills" — VPP Turns Your PV Panels into "Energy Assets"
Many people install PV systems with the mindset of "generating electricity to save money": the electricity generated by their own systems eliminates the need to purchase electricity from the grid, and the surplus electricity is sold to the grid at a fixed price, saving thousands of yuan a year. However, in the VPP model, your PV panels and energy storage batteries suddenly take on 3 "new identities":

1. The "Emergency Power Source" for the Power Grid
Last summer, California in the United States was hit by extreme high temperatures, and the grid load soared to a warning level. The VPP system of Ktech Energy aggregated the energy storage batteries of 50 households in the suburbs of Los Angeles within 15 minutes, releasing 800kW of electricity to help the grid get through the peak electricity consumption period. The participating households not only didn't have to delay using their air conditioners but also received a subsidy of 1.2 US dollars per kilowatt - hour of electricity — nearly 4 times higher than the regular price for surplus electricity fed into the grid.
Behind this lies the "fast - response gene" of Ktech Energy's KE series inverters: with VPP technology support, they can switch from "self - use" to "grid - connected support" within 10ms after receiving instructions from the grid, nearly 100 times faster than traditional equipment. It's like installing an "emergency light" in the PV system, which turns on immediately when the grid is in need.

2. An "Arbitrage Tool" for Electricity Price Fluctuations
In Europe, electricity prices can vary by up to 3 times in a single day: at 8 a.m., when many people use air conditioners, the price may rise to 0.5 Euros per kilowatt - hour; at noon, when PV generation is at its peak, the price drops to 0.15 Euros per kilowatt - hour. Ktech Energy's iHEMS intelligent energy management system acts like an "energy butler" to help you calculate this:
The electricity generated at noon is first stored in the NP series lithium - ion batteries (with a cycle life of over 6,000 times and no attenuation even after 10 years of use);
In the evening, during the peak electricity consumption period, the electricity is "sold" back to the grid. With this "buy - low - sell - high" approach, a net profit of 0.35 Euros is made per kilowatt - hour of electricity.
The owner of a bed - and - breakfast in Madrid, Spain, calculated that by operating according to this logic, he earns an additional 300 Euros per month compared to simply "generating electricity for self - use", which is equivalent to having an "automatic money - making piggy bank".

3. A "Dividend Harvester" for New Energy Policies
Countries around the world are offering "policy bonuses" to VPP participants to promote carbon neutrality: the United States reduces the electricity surcharge by 10% for VPP participants, and the European Union provides "green energy points" to users connected to virtual power plants, which can be exchanged for supermarket gift cards.

Ktech Energy has an advantage in "global certification compliance": the KE series inverters have obtained U.S. standard certifications such as UL1741 and Rule21, and also meet the European standard IEC 62109. Hans, a customer in Berlin, Germany, benefited a lot from this — when his PV project was connected to the local VPP, because the equipment had passed the TÜV certification in advance, it directly skipped the 2 - month review period and received the government's green energy subsidy in the first place.



II. Not All PV Systems Can Join VPP — These 3 "Hard Indicators" Determine Whether You Can Make Money
Don't think that installing a PV system is enough to "lie down and make money" by joining VPP. The power grid has 3 "hidden requirements" for participants, and Ktech Energy's technology just meets these "key points":

1. Equipment Should Be Like "Special Forces" — Obeying Commands and Responding Quickly
The core of VPP is "aggregation" — hundreds or thousands of scattered PV and energy storage devices must act as a single unit to follow the grid's dispatching. This requires the inverter to have "smooth communication":
Ktech Energy has installed an "all - channel communication module" in the KE series: WiFi, Bluetooth, 4G, RS485... Whether you are in the deep mountains of Norway (using 4G) or in a high - rise building in London (using WiFi), the equipment can receive instructions from the VPP platform in real time. More importantly, it has "fast action": after receiving the peak - shaving instruction, the charging and discharging power of the energy storage battery can be adjusted in place within 1 second, avoiding being "kicked out" of the grid due to "slow response".

2. Energy Storage Batteries Should Be "Sensible" — Durable, Cost - Effective, and Not Delicate
After joining VPP, energy storage batteries will undergo frequent charging and discharging cycles. Ordinary batteries will have more than half of their capacity attenuated after 2 years of use. However, Ktech Energy's NP - WG165P2 lithium - ion battery has two "superpowers":

• Durable: With 90% deep discharge and 6,000 cycles, even if it participates in VPP dispatching every day, it can still maintain more than 70% of its capacity after 10 years of use;
• Intelligent: The built - in battery optimizer can "balance old and new batteries" — even if you add new batteries later, the old ones will not hold you back, avoiding the waste of "having to replace the entire set to increase capacity".
  

A resident in Lyon, France, who has used old batteries for 4 years, added a new set of batteries last year. Now, the income from participating in VPP is 18% higher than before, which is a perfect example of this advantage.

3. The System Should Be "Able to Calculate Accounts" — Ensuring That the Earnings Outweigh the Losses
Some people worry: Will frequent switching of charging and discharging modes increase equipment wear and tear? The Xiao'ai Butler Cloud Platform of Ktech Energy is equipped with an advanced AI intelligent analysis system, which acts like an "intelligent accountant" to calculate in real time:

• Relying on the learning and analysis of historical data by AI algorithms, it accurately predicts how much money can be made by participating in this VPP dispatching;
• Combining equipment parameters and operating status, the AI automatically evaluates the equipment wear and tear and additional energy consumption;
• Determines whether the final net profit is worthwhile.
  

If it's not cost - effective, the AI system will automatically "reject" the dispatching, acting like a "risk controller" hired for your energy assets, ensuring that you only make "stable money". Moreover, as the system is used, the AI will continuously optimize the calculation model, making the profit prediction more and more accurate, truly achieving "understanding you better as it is used more".



III. From "Passively Receiving Electricity" to "Actively Making Money" — How Can Ordinary People Get Started?
Whether you are an "existing user" who has already installed a PV system or a "new user" who is planning to install one, Ktech Energy's VPP technology can help you enter the market quickly:

• For existing users: There's no need to replace the equipment. By adding a communication module from Ktech Energy, you can connect to the VPP platform. Paul from Manchester, UK, who installed an old - model inverter in 2018, spent 50 pounds to upgrade it last year and now earns an additional 120 pounds per month, recovering the cost in just 5 months.
• For new users: You can directly choose the KE series inverters with VPP function (such as KE - 10KD5LSUN, KE - 25KD5H3EN) to achieve the goal in one step. Moreover, it supports "in - depth customization" — you can tell the engineers about your electricity usage habits and local electricity price policies, allowing the system to "preset the optimal strategy" in advance.
  

More importantly, Ktech Energy has technical support centers in more than 20 regions around the world. From "connecting to the VPP platform" to "daily revenue settlement", there are professionals to assist you throughout the process. It's like having an "energy broker" by your side; you don't need to understand complex rules, you just need to follow along to make money.

Now, when you look at your home's PV panels again, do you suddenly feel that their "value has multiplied"?

In the past, they were "tools for saving electricity"; now, they are "assets that can generate money". And Ktech Energy's VPP technology is the key to activating this "asset value" — you don't need to understand grid dispatching or calculate electricity price fluctuations. As long as you hand over the equipment to the system, you can turn sunlight, energy storage, and even the "peak and trough of electricity prices" into "real money" in your pocket.

After all, in the era of the energy revolution, the smartest investment is to ensure that "every ray of sunlight in your home" shines for a purpose.