Power giant AGL has ceased installations of household batteries in Adelaide as part of a trial "Virtual Power Plant" and is flagging a change of battery technology, but won't confirm if it is experiencing problems with its current product.
The scheme went live in March and has seen hundreds of households install with Sunverge batteries, heavily subsidised by AGL and the Federal Government's renewable energy agency ARENA.
Under the scheme, flagged as "the largest project of its kind in the world", AGL has the power to simultaneously discharge power from the batteries into the grid, helping secure the grid when needed.
AGL wrote to prospective customers this week, alerting them that the company is ceasing installations as it plans to introduce "next-generation battery technology into our next phase of installations".
Two months ago AGL customer Rob Fitzgerald had an AGL battery system installed at a short-term rental property he owns in Parkside, to help control spiralling electricity costs.
Yet he said the near-new battery was now in line for replacement.
"In August we had this one installed and I got a call the other day to say they're upgrading the system, upgrading the battery. Technology's changed," Mr Fitzgerald said.
"They said it should be around about November when they put the battery in and do the upgrades."
"I can see the battery is working fine. But they tell me there's upgraded technology happening. So I read that as something's gone wrong with the battery, something's failing with the battery or something has failed with the battery."
Mr Fitzgerald said he had paid extra for equipment which would enable the battery to operate during a blackout, but had been advised by AGL to switch off that functionality.
"We paid about $1,000 extra for that. I got a call from AGL, that said there was some issue, some software problem, some glitch in the system," he said.
"So they've actually asked me to turn it off and they're looking at a fix there. Hopefully they'll happen soon."
AGL stays quiet on possible technical troubles
AGL would not respond directly to the ABC's questions about whether there had been problem with the current Sunverge battery technology.
A company spokesman said "the SA Virtual Power Plant pilot is successfully working as a pilot should — new technology is being tested in the market and based on lessons learned, the program is being adapted".
"AGL also notes that the Virtual Power Plant has not paused, and remains live, operational and safe," the spokesman said.
The power provider did not respond directly to the ABC's questions about how many customers would have their battery systems replaced, and the reasons for their replacement, but said the program's "early adopters" would be offered an "upgrade to the next generation offering".
"Lessons and customer feedback from the initial phase of the project are being used to shape subsequent phases and we want to ensure that all customers have an opportunity to opt in to the next generation offering," the spokesman said.
AGL said it would reach out to all registered Virtual Power Plant customers over coming days to discuss project updates with each customer individually.
