While South Africa is deemed one of the countries with the highest irradiation levels, it still utilises coal as its primary energy source due to its abundance. Due to the world-wide drive towards carbon neutrality, residential, commercial, agricultural, and industrial consumers are considering small-scale embedded generation systems. The National Rationalised Specifications 097-2-3 document specifies the scale of the embedded generation capacity a consumer is allowed to install. However, specifications do not yet make the required provisions for the addition of energy storage. The effective collective management of the grouped small-scale embedded generation systems could provide a high level of energy security and increase the percentage of renewable energy generation in the total energy mix. Potential challenges come into play when considering the stochastic nature of photovoltaic generation and its effect on the storage capacity and the dispersion in load profiles of the residential units typically present on a low-voltage network. This paper contributes by investigating the utilisation of photovoltaic generation in conjunction with storage as the basis for virtual power plant control, with the aim to safely increase renewable energy penetration and improve energy security, all while remaining within the South African low-voltage regulatory limits. A two-level virtual power plant controller is proposed with the dispersed energy storage units as the primary controllable resources and the dispersed photovoltaic generation as the secondary controllable resources. The objective of the controller is to achieve nodal energy management, energy sharing, and ancillary service provision and finally to increase renewable energy penetration. A representative single-feeder low-voltage network is simulated, and test cases of 50% and 75% renewable energy penetration are investigated as the basis for evaluation. The proposed controller architecture proved to maintain network integrity for both test cases. The adaptability of the controller architecture was also confirmed for a changed feeder topology; in this case, it was a multi-feeder topology. Future work is warranted to inform policy on the allowed levels of renewable energy penetration to be based not only on demand but also on the level of energy storage present in a network.