A virtual power plant (VPP) is a network of small, distributed energy resources (like solar batteries) that are linked and controlled using smart software. Together, they behave like a single power plant.

When you’re enrolled in a VPP, your solar battery can help support the electricity grid by releasing stored energy during high-demand periods or peak times. 

The benefits of participating in a VPP include: 

  • potential financial benefits from higher feed-in tariffs
  • lower costs for the electricity grid and improved grid reliability
  • better use of renewable energy
  • improved resilience during emergencies.

How much you save depends on which VPP program you join and how often your energy is shared from your battery into the VPP network. It’s important to research the VPP options available to make sure it’s a good fit for you.

VPP capability 

​All on-grid solar batteries (including inverters) must be capable of participating in a VPP at the time of installation to claim small-scale technology certificates (STCs) under the Small-scale Renewable Energy Scheme (SRES). You don’t have to participate in a VPP, though you can choose to join one at the time of installation or in the future. Additional upgrades may be required if you join later. Speak to your retailer for advice.

If you would like to participate in a VPP you will need:

  • an ongoing internet connection
  • to communicate with third-party energy aggregators or VPP operators
  • to respond to grid signals when called upon. 

Depending on the inverter and the site conditions, there may be additional requirements for hardware and/or software and to grant site controllers access to multiple solar batteries on site. A battery retailer will be required to advise you of any additional requirements.

Off-grid systems do not need to be VPP-capable to be eligible if they are more than 1 kilometre from the grid. However, if a VPP capable solar battery is installed at a premises that is off-grid, it can still receive support under the program.

Entering a VPP agreement

A VPP is an agreement between you and a VPP operator (who may also be your electricity retailer). You should do your due diligence to make sure a VPP is right for you by:

  • researching the different available VPP options and operators
  • understanding the benefits and cost implications of joining a VPP
  • understanding the impact of battery discharge rates on your system’s warranty.

Once you have decided on a VPP operator, make sure that the contract between you and the operator works for you. It’s also important to continue to monitor your VPP throughout your contracted period.

We do not get involved in contractual arrangements between you and your energy retailer or VPP operator. Find out what to do if you have a complaint.

More information

More information about how VPPs work and which programs are available: