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  4. What is a VPP and should I join one?
Why is the Cheaper Home Batteries program a game changer for our energy system? How much can I save? How much battery storage should I get? Can I add my battery to an existing solar system? Will my household battery give me back up power? Are household batteries safe? How can I avoid phony installers? What is a VPP and should I join one?

What is a VPP and should I join one?

To be eligible for the Cheaper Home Batteries Rebate the battery purchased must be able to be connected to a Virtual Power Plant or VPP (but is not required to be part of a VPP). The NSW government has withdrawn their battery rebate, but has increased the financial incentive to join a VPP.

Answer

A virtual power plant (VPP) is a network of distributed energy resources – including rooftop solar, home batteries, electric vehicles and smart appliances – all virtually linked and orchestrated together so that they can act together like one big battery.

A battery is VPP capable if the inverter: 

  • can connect to the electricity grid and external entities (directly or indirectly), and
  • can communicate and respond through remote signals, and
  • has the communications protocol to allow the battery to receive and respond to signals by external entities.

Done right, VPPs can help democratise our energy system. They can turn homes into active participants in the grid, bring down bills, and share the benefits of clean energy with renters, apartment dwellers, and social housing tenants.

Most VPPs are run by large electricity retailers and there are concerns around lack of fairness, control and equity in financial return for consumers. 

Ideally households should be able to:

  • Understand exactly how and when their batteries are controlled;
  • Retain the right to override VPP decisions;
  • See a clear, fair return on their investment.

Currently the most consumer-friendly VPP available is run by Amber Electric. With their SmartShift program, households retain full control over their batteries and keep 100% of the revenue they generate—minus a flat monthly fee. Consumers can opt in or out at any time and see in real-time how their energy is being used. It’s a consumer-first approach that builds trust and participation.

The Smart Energy Council says VPP design should be:

  • Transparent – clear about how they make money, and who gets what slice.
  • Accountable – to the people whose assets and trust they rely on.
  • Consumer-centred – not an afterthought or compliance checkbox.

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