### **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]]