Virtual Power Plants

A Virtual Power Plant is a network of connected solar batteries, typically located in homes or small businesses, that work together to support the electricity grid. By remotely aggregating the stored energy, a VPP functions like a decentralised power station—balancing electricity supply and demand in real-time.

This collaboration between solar battery owners helps stabilise the energy grid, reduce reliance on coal and gas, and manage peak demand periods and outages more effectively. VPPs can also help regulate voltage imbalances and maintain power quality across the network.

In line with this, the NSW government is targeting a 70% emissions reduction by 2035, with a goal to reach net zero by 2050—objectives that VPPs are directly helping to achieve.

Are Virtual Power Plants a Good Choice?

One of the most common questions we receive at SolarBright is whether joining a VPP is a smart decision. Like any energy solution, VPPs come with both advantages and trade-offs.

Benefits of Joining a Virtual Power Plant:

• Grid support for your home and community: By contributing stored solar energy, you help stabilise the local grid and reduce strain during peak times.
• Financial incentives: Receive credits or discounts on your energy bill based on how much energy your battery shares with the grid.
• Environmental impact: By reducing reliance on fossil fuels, you’re actively participating in the transition to cleaner energy.
• Community energy sharing: Excess power from your battery can help your neighbours during high-demand periods.
• Fewer outages and disruptions: VPPs help balance demand, reducing the likelihood of grid instability or blackouts.
• Scalable battery systems: Leading battery brands such as Tesla Powerwall 3 and sonnenBatterie Evo 10 are VPP-compatible and can be expanded over time with additional modules or packs—future-proofing your energy investment.

Considerations Before Joining Virtual Power Plant:

• Reduced control: Some VPPs may access your battery remotely, limiting your control over charge/discharge settings.
• Tariff limitations: Being part of a VPP may prevent you from taking advantage of certain off-peak energy tariffs.
• Retailer changes: Some VPPs require you to switch to a specific energy retailer.
• Battery lifespan and warranty: Increased cycling due to VPP participation may affect your battery’s long-term performance and warranty, depending on the manufacturer.
• Transparency issues: Not all VPP providers are equally transparent about how and when they use your battery.

At SolarBright, we’re here to help you weigh the benefits and trade-offs based on your energy needs, household setup, and long-term goals.

Available VPP Incentives in NSW

NSW residents can take advantage of several rebate programs designed to encourage VPP participation.

Peak Demand Reduction Scheme (from July 1, 2025)

You could receive a rebate of up to $1,500 by connecting your battery to a VPP under the NSW Peak Demand Reduction Scheme. The final rebate amount depends on:

• The VPP provider and their terms
• The contract you sign, including pricing for excess energy and access terms

This rebate can also be combined with other federal incentives, such as the Cheaper Home Batteries Program.

Additional Upfront Discounts

When you join a VPP through an Accredited Certificate Provider (ACP), you may receive upfront discounts that are passed on to you:

• 6.5 kWh battery: $120–$190
• 13 kWh battery: $250–$400
  This incentive can be claimed twice, with a 3-year gap between claims.

Federal Rebates – Cheaper Home Batteries Program (July 2025)

The Federal Government is launching a $2.3 billion Cheaper Home Batteries Program, beginning on July 1, 2025. Key points include:

• 30% upfront discount on eligible battery installations
• Delivered via the Small-scale Renewable Energy Scheme (SRES)
• Discounts are based on battery capacity and will reduce over time until 2030
• Available to both homes and businesses

This program is expected to significantly lower the upfront cost of batteries and make VPP participation more accessible for Australian households.

How to Join a Virtual Power Plant

To join a VPP, you’ll need:

• Solar panels and a VPP-ready battery
• A battery that can:
  • Be remotely managed (charged/discharged)
  • Share real-time performance data
  • Contribute to network stability

Some of the best VPP-compatible batteries on the market today include:

• Tesla Powerwall 3: Seamless integration with solar, expandable via Powerwall units, and supported by a strong VPP network.
• SonnenBatterie Evo 10: German-engineered for performance and longevity, Sonnen systems are modular, scalable, and widely supported by VPP providers across Australia.

Once your system is ready, contact an accredited VPP supplier. They’ll help set up your contract and ensure that you understand the full scope of benefits, terms, and incentives.

At SolarBright, we always recommend comparing multiple providers to ensure you’re getting the best possible return on your solar and battery investment.

Talk to the Experts at SolarBright

At SolarBright, we’re passionate about helping Australian families harness clean energy and make smart, future-proof decisions. If you’d like to learn more about Virtual Power Plants, rebates, or which battery solution is right for you, give our friendly team a call on 1300 852 622 for a free consultation.