How a VPP works
The operator controls your battery remotely within limits set in your contract. When wholesale prices spike or the grid is short of power, it discharges batteries across thousands of homes at once. AEMO ran a demonstration program to test how VPPs can support the grid, and many retailers now offer VPP plans.
Most contracts keep a minimum reserve in your battery for your own use or backup. Outside events, the battery runs normally for your home.
Benefits and trade-offs
Benefits
What you get- Sign-up credits or upfront payments
- Higher rates for power exported during events
- NSW VPP incentive on top
- Helps keep the grid stable
Trade-offs
Read the fine print- Less charge left for your own evening use on event days
- Extra cycling may count against warranty throughput
- May require a specific retailer or plan
- Exit fees or minimum terms on some offers
Government incentives linked to VPPs
| Where | Incentive |
|---|---|
| NSW | An upfront payment for joining a VPP, based on battery capacity made available up to 28 kWh. Batteries from 2 to 50 kWh are eligible. Claimable once per meter. Paid as cash, instalments or bill credit, depending on the provider. |
| WA | The state battery rebate and no-interest loans require participation in a Synergy or Horizon Power VPP. |
| Australia | The federal battery discount requires batteries to be VPP-capable but does not require you to join. |
Questions to ask a VPP provider
How often will you use my battery?
Ask for the expected number of events a year and how much charge they can take.
What reserve will I keep?
A minimum charge left for your home, especially if you rely on backup.
What does it do to my warranty?
Check with the battery maker that VPP use is allowed and how throughput is counted.
What is my whole-plan price?
Compare the usage rate and supply charge too. A generous VPP credit can hide a dear plan. See comparing plans.
Can I leave?
Check minimum terms, exit fees and whether the NSW incentive must be repaid if you leave early.
Common questions
A network of home batteries that a retailer or aggregator controls together, discharging them when the grid needs power. Members are paid through credits, higher export rates or upfront payments.
It can be, especially in NSW with the state incentive and in WA where it is required for the state rebate. Check how much of your battery the operator can use, the whole plan price and any lock-in.
Not usually, but extra cycling counts toward warranty throughput limits on some batteries. Ask the battery maker and VPP provider before you sign.
Sources
Rules and program details come from government sources. Prices are industry averages, named and dated where used. Last checked October 2026. Prices include GST unless we say otherwise.