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In a world of innovation and revolutions, we see homes and businesses explore better ways where they can produce, store, and consume their own power using microgrid systems to avoid the instability and chaos of the electricity grid.
With the rapid uptake of solar and battery across Australia with available incentives, homes and businesses are exploring ways that they can maximise benefits and return-on-investment timeframes. One strategy is joining a Virtual Power Plant (VPP) program to accelerate returns, but what in the world is a VPP, and how does it work?
A Virtual Power Plant (VPP) is a program where a decentralised network of homes and businesses individually contribute to generating and storing energy as a collective, absorbing excess solar energy and feeding into the grid when required for rewards.
How do Virtual Power Plants Work? Virtual Power Plants are made up of Distributed Energy Resources (DER) like solar and battery systems, which are used to help supplement the grid and balance demand with production for grid stability.
Difference between Microgrid vs. Virtual Power Plant? Homes and businesses with solar and battery systems are defined as a Microgrid, which can participate in a Virtual Power Plant program for incentives and rewards.
Explore the benefits of joining a Virtual Power Plant below.
Last Updated: 1 September 2025
We went through the most well-known Virtual Power Plant programs available in Australia and outlined the requirements and reward opportunities. Below is a comparison table for the available Virtual Power Plant programs in NSW.
| NSW VPP Networks | AGL | Energy Australia 'Battery Ease' | Amber Smartshift | Origin Loop VPP | ENGIE VPP Advantage |
|---|---|---|---|---|---|
| Approved Batteries |
Tesla Powerwall 2 & 3 LG RESU 16H & 10H Sungrow SBR 096,128,160,192,224,256 SolarEdge Energy Bank & Home Battery |
Approved battery and inverter systems include: Alpha ESS, Ambrion, Eveready, GivEnergy, Goodwe, Growatt, Hive, LG Energy Solution, Redback, Sigenergy, Solaredge, Sungrow, Sunpower and Tesla. |
• Tesla Powerwall 2 & 3 • LG Chem • AlphaESS • Hive • REA Power • BYD HVM & HVS • Sungrow batteries (with compatible inverters*) • Redback • Sigenergy • Neovolt |
• Sungrow SBH and SBR • GoodWe Lynx • LG RESU • Solax T-BAT • AlphaESS SMILE & Storion • Tesla Powerwall |
• Tesla Powerwall 2 • Tesla Powerwall 3 • Empower Elektrobank • Sungrow SBR and SBH • AlphaESS SMILE • Sigenergy SigenStor |
| Eligibility Requirements |
Supply address must be able to export more than 5kW.
Smart meter installed |
Must be an Energy Australia customer. Smart meter and reliable internet (excluding 3G/4G). |
Amber subscription ($25/month). Smart meter and reliable internet (excluding 3G/4G). |
Battery Maximiser: 5–20kW solar system, 9.5kWh+ battery, 5kW inverter. BYO Offer: >5kW solar, >5kWh battery. Monthly Credit/Upfront Discount: Must be installed by Origin. |
5–10kW inverter solar system. Smart meter and reliable internet (excluding 3G/4G). |
| VPP Program Offers |
$100 sign-up or $0.4932/day credit. $1000 rebate to system or prepaid card. |
$15/month bill credit (up to $180/year). | Access wholesale market – earn up to $19/kWh. | $200 sign-up bonus + $1/kWh export during Loop events. | $200 sign-up credit + ~$20 monthly credits. |
| Feed-in and Consumption Tariff | Standard AGL plan (no specific VPP FiT). | 12c/kWh for first 15kWh exported. | Up to $19/kWh exports. | Standard Origin plan FiTs. | 12c/kWh for first 8kWh/day, then 5.5c/kWh (as of 1 July 2024). |
| Duration |
BYO program: 12 months. PDRS batteries: 36-month contract. |
No term specified. | No lock-in contracts. |
PDRS rebates: 3-year contract. Maximiser & BYO: No lock-in. Monthly Credit & Origin Install: 5 years. |
No lock-in contracts. |
| Minimum Capacity Reserve | Leaves 20% battery capacity. |
Leaves a minimum of 10% energy capacity. Will not exceed 200kWh/year. |
No more than 2 cycles/24hrs. (Earning optimiser mode) No more than 1.3 cycles/24hrs. (Battery booster mode) User defines reserve. |
20% reserve capacity. Max 200kWh/year exports. |
20% reserve (Tesla) or inverter-defined. Max 405kWh/year exports. |
| Cancellation |
$0–$800 exit fee if rebate taken. No fee for BYO offer. |
No exit fees. | No exit fees. | Early exit may incur fee equal to rebate value remaining. | No exit fees. |
| Additional Info | Program not accepting new customers. | *Compatible inverter list available. | |||
| VPP Rebate Options | NSW Government's VPP Incentive + Cheaper Homes Batteries Program | NSW Government's VPP Incentive + Cheaper Homes Batteries Program | NSW Government's VPP Incentive + Cheaper Homes Batteries Program | NSW Government's VPP Incentive + Cheaper Homes Batteries Program | NSW Government's VPP Incentive + Cheaper Homes Batteries Program |
| Terms & Conditions |
Virtual Power Plants are designed to be more than just a smart energy management solutions. VPPs are a way for homes and businesses to
contribute to Australia's future electricity grid with solar and battery systems. Here are the benefits of joining a Virtual Power
Plant program.
Instead of your battery being unused, it can be utilised during peak demand periods to earn credits, minimise energy bills, and earn other rewards depending on the program.
By joining a Virtual Power Plant program, you can offset the cost of the battery's investment with the rewards and savings earned through the plan.
When you're a part of the virtual power plant network, you're contributing to helping the community's electricity requirements by helping balance grid demand and supply.
Whilst each Virtual Power Plant provider and program will differ in requirements, they will consist of similar basic requirements to ensure your program is operational.
A consistent internet connection (usually hardwired): To ensure retailers can control
your battery when required, a hardwired ethernet connection is generally required.
A VPP-Compatible Battery: Not every battery is compatible with a VPP. Batteries like Tesla Powerwall, Sungrow SBR & SBH, and BYD Battery-Box are eligible for Virtual Power Plant participation.
An Eligible VPP Location: You'll need to ensure you're located in an area where retailers and providers support Virtual Power Plant programs.
Solar PV Power: In most cases, it's usually required and more beneficial to join a Virtual Power Plant with a solar system powering your battery to take full advantage of its benefits.
It is recommended and usually required for VPP-participants to have both a solar and battery system installed to join a Virtual Power Plant.
It not only enables eligibility, but it also allows you to take full advantage of your solar and battery system's capabilities and maximise your savings and returns.
Combining solar and battery systems with alternating peak hours, a Virtual Power Plant plan will balance grid demand with supply and absorb daytime production to be used later when grid consumption is higher.
To have an effective VPP program, it is required for all properties to be able to both generate and store renewable energy to help accommodate community consumption patterns.
With the rapid uptake of solar and battery systems throughout NSW, Australia, it is clear that Australian's are looking at ways to save money in their energy.
Combining cheaper home batteries with available Virtual Power Plants presents an opportunity for potential buyers to invest more into their energy, taking advantage of sign-up bonuses, VPP rebates, and upfront discounts on battery storage systems.
To claim the Virtual Power Plant rebate in NSW, you can simply choose a Virtual Power Plant provider who will check your rebate eligibility. Once your cool-off period has finished, your VPP provider will supply a form for you to complete to receive your incentive.
With a 3rd party controlling the usage of your battery, it can be concerning if they over-use your battery with continuous charging and discharging cycles.
The short answer for if VPPs reduce battery lifespan is not necessarily. Depending on the Virtual Power Plant provider you choose, they should outline how much they use you battery over the course of a year.
VPP providers like Origin and Energy Australia both outline in their terms that they don't take more than 200kWh per year. 'We will not discharge more than 200 kWh of electricity from your Battery to the grid in any 12-month period.'
Virtual Power Plants generally involve short 'bursts' of energy that are exporting into the grid in a moment of instability. Amber allow you to set a maximum of 2 or 1.3 cycles per day with their earning optimiser and battery booster modes.
Whilst joining a Virtual Power Plant has its upsides, there are some caveats, depending on what VPP network you choose.
Ensure you conduct your research into the requirements and terms and conditions that the VPP network offers as elements like FiTs and control parameters.
Because you're joining a network, the algorithm will reduce your control over battery levels. This could be an issue if you wanted to prepare for a possible grid outage.
Depending on what VPP you join, they will reserve a certain amount of energy for your consumption. This amount may vary based on specified requirements.
As Australia heads towards a renewable future, there's no doubt that Virtual Power Plants are playing a role in increasing adoption and enabling more opportunities for potential investors.
Depending on your budget and control requirements, joining a Virtual Power Plant can be a great option to help increase payback and quick return-on-investment.
We've installed solar and battery systems for a number of customers that have joined Amber to help accelerate rewards, and we can see a lot of success with higher solar FiTs and earning to assist in paying back the initial battery investment.
With more participants joining a Virtual Power Plant network, each individual has to contribute less in order to sustain grid stability.
As Australia transitions to a renewable future, Virtual Power Plants are already enabling Australians in investing in solar and battery systems, with services like Amber offering direct rewards to customers.
By collectively powering the grid during imbalances, it benefits not only the participants, but also households and businesses without solar and battery as you're contributing to a reduced load.
Depending on elements like your system setup, energy goals, budget, and application requirements, joining a Virtual Power Plant can be a great choice.
We highly recommend carefully reading terms and conditions to understand what you're signing.
As more solar and battery systems are being adopted throughout Australia, virtual power plants will continue to offer incentivised solutions for properties all over NSW.
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