KEY POINTS
- A VPP is a network powered by home solar batteries and managed by cloud-based technologies, providing the grid additional energy and support during peak periods.
- Customers on a VPP can typically expect benefits such as installation discounts, bill credits, sign-up bonuses and generous feed-in rates.
- Whether a VPP is worth it depends on your personal circumstances and expectations.
Solar energy isn’t always sunshine and rainbows for those looking to utilise it. The sun can’t be controlled, so it can’t be turned up or down depending on demand. This can severely strain the electricity grid. Virtual Power Plant (VPP) networks are the way to combat this.
In this guide, we reveal all you need to know about VPPs, including what they are, how they work, which providers offer VPP solar plans, and if they are worth signing up for.
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What is a VPP?
A VPP network is a mini power grid created through home solar battery units. It’s a smart network, usually managed by AI software, drawing solar energy from existing solar PV and home battery storage systems to provide extra support to the grid in times of peak demand.
The energy drawn from each battery then allows renewable energy to be harnessed quickly, keeping the network stable and reducing reliance on fossil fuels. In exchange, customers can generally expect a bill credit or installation discount on top of a reduction in their carbon footprints.
How does a VPP work?
VPP networks are coordinated remotely by an electricity provider or distributor, which owns the VPP network.
These companies use technology that draws data from a variety of sources to forecast demand. From here, the VPP network can then play to demand and export additional solar power as required. Some of these data sources include:
- Weather forecast
- Usage data
- Market trends
- Historical consumption patterns
Which providers offer VPP plans and programs?
If you are interested in joining a VPP network, we’ve listed below some of the electricity providers that offer them.
Please keep in mind that some of these programs may only be available in certain states or distribution zones. We recommend contacting a provider directly and reading the terms and conditions before making a purchase decision.
The electricity providers in Australia with a VPP program include:
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| VPP provider | Approved batteries | Incentives | Eligibility requirements | Contract terms |
|---|---|---|---|---|
| AGL VPP | Tesla Powerwall (for NSW, QLD, SA and VIC) SolarEdge Energy Bank (for NSW, SA and VIC) LG Home Battery with compatible SolarEdge inverter (for NSW, SA and VIC) |
$100 signing-up credit Ongoing quarterly bill credit: $45 in NSW, QLD and VIC (up to $280 every 12 months) $70 in SA (up to $380 every 12 months) Solar installation discount worth $1000 if: – Customers opt for an AGL-approved installer – Do not leave the VPP during their 5-year term |
Live in NSW. QLD, SA or VIC | No lock-in |
| ActewAGL VPP: Virtual Power Plant | A SolarEdge Inverter and LG Home Battery Battery Models: – LG RESU 10H – LG RESU 7H Inverter: – HD-Wave – StorEdge |
50% discount on supply charge for 12 months 8c/kWh solar feed-in rate for first 10kWh per day, 6c/kWh for all usage thereafter |
ACT, NSW (southeast only) | 12 months |
| Amber VPP: SmartShift | Compatible with multiple batteries | Access to wholesale electricity prices | Live in SA, NSW, VIC, ACT, and QLD (Energex area or region) | No lock-in |
| Diamond Energy VPP: WATTBANK VPP | Compatible solar battery minimum capacity of 5kWh | Rewards for your excess energy exported to the grid Credit with a minimum of $250 and up to $450 per annum based on solar capacity, battery usable capacity and inverter size Battery Usage Credit at 30c/kWh (inclusive of GST) for energy exported to the grid between 6 pm and 8 am |
Live in SA, Vic, NSW, QLD (Energex) | No lock-in |
| Discover Energy VPP: Virtual Power Plant (Discover is no longer selling to new customers) | AlphaESS, Sungrow, Goodwe, Growatt | Premium feed-in rates for first 3.28kWh exported per day: 30c/kwh Next 3.28kwh exported per day: 18c/kwh All remaining kWh exported per day: 9c/kwh |
GoodWe, Sungrow, Solar Edge, Alpha ESS, Growatt, QCELLS, Huawei | No lock-in |
| Energy Locals VPP: Tesla Energy Plan | Tesla Powerwall 2 | $220 per year in Grid Support Credits Standard feed-in tariff of 5.00c/kWh Solar sponge tariff: 20.02c/kWh (10am-3pm daily) |
Live in NSW, SA, VIC, QLD (Energex) or the ACT | No lock-in contract |
| Origin VPP: Loop | Compatible solar battery and inverter (verify your battery or inverter’s compatibility on their website) | Spike Energy rewards program $200 sign-up bonus $1/kWh for energy extracted and sent to the grid on top of your existing FIT |
Live in NSW, SA, VIC, QLD (Energex) or the ACT | No lock-in |
| Engie VPP: Virtual Power Plant | Minimum inverter size of 5kW, maximum of 10kW Tesla Powerwall 2 |
$500 sign-up credit on first bills for new VPP customers $20 monthly VPP community credits |
Live in SA, NSW, VIC or QLD (Energex) | No lock-in |
Information sourced from individual retailer websites and Solarchoice, March 2025
Some energy distributors and retailers, such as Ausgrid in Sydney and Jacana Energy in the Northern Territory, also run VPP trials for residents to participate in.
What are the pros and cons of joining a VPP?
Pros
- Virtual power plant programs offer various benefits to participants, including:
- Subsidies
- Bill credits
- Sign-up bonuses
- Feed-in rates
- Subsidised home battery installations
- Being connected to a smart system helps you and your chosen VPP provider keep a close eye on the health and lifespan of your battery, making it easier to identify connection issues
Cons
- While almost all programs highlight a maximum export amount or discharge limit that they’ll take, being part of a VPP means giving up control of your battery system and limiting access to your solar energy
- You may be left without reserve storage in the case of a blackout or power outage
- Being on a VPP does not immediately guarantee savings on your power bills
Eligibility requirements and subsidies vary, so it’s essential to check specific retailer VPP details for the most up-to-date information.
Compare solar plans
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Ausgrid network in Sydney but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Citipower network in Melbourne but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Energex network in Brisbane but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on SA Power network in Adelaide but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
What should I consider before joining a VPP?
It’s important to ask yourself the following questions before making a decision:
- Will receiving a discounted battery installation or a credit on your bill make up for the large portions of solar energy you are giving up?
- Will the cost of your solar battery and installation be compensated by the bill credits for sending your power back to the grid instead of using it for your own home?
- Do I still need backup or storage capabilities in case of a blackout?
- If I install a solar battery, am I also eligible for a government rebate in my state/territory?
Who is eligible to join a VPP?
Each VPP has its own set of criteria, but here are the key requirements all VPP networks ask for:
- Solar panels/battery: you need to have solar panels and a solar battery to be eligible to join a VPP. Most programs currently available require you to install a solar battery through a designated provider in exchange for a loyalty discount. Some retailers allow you to ‘bring your own battery’, but even still, these must be compatible solar battery brands and models
- Loyalty contract: you’ll also need to agree to an electricity plan with that provider or company to join its VPP, and there may be minimum contract terms you’ll need to adhere to (e.g. you must remain with the provider for at least five years). Homeowners are also unable to join more than one VPP program at a time
- No life support: households with people on life support are typically unable to join a VPP network due to the role these programs play in grid demand response
- Homeowners are also unable to join more than one VPP program at a time
- Demand: the maximum number of participants a VPP program can take at any one time is generally capped. This can vary, but the world’s largest VPP program in South Australia has an estimated maximum network of 50,000 systems
Should I join a VPP?
Ultimately, this decision will come down to your home energy usage habits, intended plans for solar energy and the trust you have in your chosen VPP electricity provider.
If you’ve got the energy to spare or want to earn a little more from your solar battery, then a VPP may be a great addition to your energy plan. But if you’re just looking at a VPP for the discounted solar battery installation, then you may be better off seeking out a solar rebate from your local state or territory government instead.
If you’re interested in getting solar panels or a battery for your home, then be sure to check out our annual solar installer ratings. Here we reveal the best solar installers in Australia, as voted by consumers, based on customer service, installation process, performance of solar system, durability, set-up costs and overall satisfaction. Check out this year’s winner below.
Original reporting by Kelseigh Wrigley
Image Source: Metamorworks/Shutterstock.com
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