### **Traditional Problem**: If you finance a battery as part of a solar loan, the lender owns rights to ALL the battery value. Can't separately monetize VPP services without refinancing entire system. ### **VPP Solution**: Split the contract/financing into two independent tracks: **Track 1**: Customer finances solar + battery for self-consumption (traditional solar loan/lease) - Covers net metering value, bill savings, backup power - Existing financing structures (solar securitization market) **Track 2**: Separate contract where VPP operator pays customer monthly for the grid services portion of battery capacity - 10-20 year VPP participation agreement - Fixed monthly payments to customer - VPP operator collects utility payments, pays customer, keeps margin ### **This Enables:** - Existing battery owners to join VPPs without refinancing - Clean separation of revenue streams for lenders (reduces perceived risk) - Standardized "retail product" that installer networks can offer at scale - Long-term contract securitization (bundle contracts, sell to institutional investors) - **"VPP-as-a-Service"** model - productized offering vs custom deals ![[Screenshot 2025-10-10 at 12.14.14.png]]