Virtual power plant (VPP) programs are one of the less-understood but increasingly valuable parts of the home battery market. They can meaningfully improve the financial case for a battery — but they require giving up some control of when your battery charges and discharges.
What is a VPP?
A VPP is a network of home batteries that a retailer or network operator can control collectively to balance grid demand. During a grid stress event — such as a hot summer afternoon when air conditioners are running flat out — the VPP operator can draw power from thousands of home batteries simultaneously, reducing peak demand on the grid.
In exchange for allowing this control, you receive financial incentives: either upfront discounts on the battery purchase, ongoing bill credits, or higher export tariffs when your battery is dispatched.
Key VPP programs in Australia
Tesla Energy Plan (Powerwall owners) Tesla offers Powerwall owners access to its VPP program, which optimises battery dispatch to maximise bill savings. The program is available in SA, VIC, NSW, QLD, and ACT. Participants can earn bill credits when Tesla dispatches their battery during peak events.
Origin Loop Origin's Loop VPP is open to customers with compatible batteries (including Sungrow, GoodWe, and others). It offers bill credits for VPP events and combines with Origin's solar buyback tariff. Available in SA, VIC, and NSW.
AGL VPP AGL runs a VPP program for customers with compatible batteries. It offers participation payments and is available in multiple states. AGL's program has been one of the larger VPP networks by number of participants.
SA Power Networks VPP South Australia's network operator runs its own VPP program specifically to manage SA's high-renewable grid. The program offers subsidised batteries as part of the SA Home Battery Scheme, with ongoing VPP participation as a condition.
Amber Electric Amber passes through real-time wholesale electricity prices to customers, effectively turning every battery into a mini VPP. Battery owners can set automation rules to charge when wholesale prices are low and discharge (or export) when prices are high. This suits technically engaged customers who want maximum control.
What to consider before joining a VPP
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How much control do you give up? Some programs are very hands-off (a few events per year lasting 30–60 minutes). Others, like Amber, involve daily optimisation.
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What's the actual financial benefit? Upfront discounts are straightforward to value. Ongoing credits require estimating how often VPP events occur and what they pay.
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Does the program require a specific retailer? Many VPP programs require you to purchase electricity from the program operator. Switching retailer has costs and benefits to weigh.
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Does your battery support the required API? VPP operators require software integration with your battery. Not all batteries support all programs — check compatibility before purchasing.
VPPs and battery sizing
If you're planning to join a VPP, it can affect optimal battery sizing. A slightly larger battery may be worthwhile if VPP participation means the battery will sometimes be partially depleted by events outside your control.
Our battery calculator includes a VPP participation toggle that adjusts the sizing recommendation accordingly.