Virtual Power Plants (VPPs) are transforming how solar and battery systems operate by connecting multiple homes and businesses into a shared energy network. In NSW, homeowners and small businesses with eligible battery systems can receive financial incentives for joining a VPP and allowing their stored energy to support the grid during peak periods.

How VPPs Work

A Virtual Power Plant works by aggregating the energy stored in individual home or business batteries. When the grid experiences high demand or instability, the VPP operator remotely accesses the stored energy to supply the network. This coordinated response helps:

• Stabilise the grid
• Reduce peak demand
• Enhance renewable energy use
• Lower costs for participants through energy credits or incentives

Participants maintain control over their systems and benefit from both self-consumption and grid contributions.

Available Incentives in 2025

In NSW, participants in approved VPP programs can earn between $250 and $400 for enrolling their battery into a supported VPP. Additional benefits may include:

• Ongoing bill credits or performance-based payments
• Enhanced control over energy usage via smart apps
• Priority access to other energy programs and services

Eligibility Criteria

To be eligible for a VPP incentive in NSW:

• You must be a resident or small business owner in NSW
• You must own a compatible battery system (e.g. Tesla Powerwall, Sonnen, LG Chem, etc.)
• The battery must be connected via an approved VPP provider or energy retailer
• The system must meet CEC installation standards and allow remote control for VPP access\\

How to Join a VPP and Claim Incentives

1. Install a Compatible Battery – Ensure your battery is VPP-ready and installed by a CEC-accredited provider.
2. Choose a VPP Provider – Review offers from energy retailers and third-party VPP operators in NSW.
3. Sign Up and Connect – Agree to the VPP terms, which outline when and how your battery will be used.
4. Receive Incentives – Once enrolled, you’ll receive the one-off bonus (up to $400) and potential ongoing bill savings.

Popular providers with VPP programs in NSW include Origin Energy, AGL, Amber Electric, and Simply Energy.

Terms and Conditions

• Incentive amounts vary by provider and may be linked to system size or usage profile.
• You retain ownership of your battery and can typically opt out with notice (check provider terms).
• Your system must remain connected and active in the program to receive full benefits.
• Participation may affect your battery’s availability for backup power, depending on configuration.

How Much Could You Save?

In addition to the upfront $250–$400 sign-up bonus, many VPP participants report ongoing bill reductions of $200–$500 per year, depending on energy usage and the VPP’s operating model.