Batteries guide
Virtual power plants explained
A virtual power plant links many home batteries so they can act together — supplying power to the grid when it's needed. Here's what that means for your battery.
How a VPP works
When you join a VPP, you allow the operator — usually an energy retailer or battery company — to control your battery at certain times. At times of high demand, they may discharge some of the energy stored in many batteries at once.
In return you typically receive credits, payments or a better electricity plan. The details vary widely between offers.
To be eligible for the federal battery incentive, a battery must be technically capable of joining a VPP. Being capable doesn't mean you have to join one.
Terms to check before joining
- How much of your battery's charge the operator can use, and how much is always kept for you
- How often, and at what times, the operator can use your battery
- What you're paid or credited, and how it's calculated
- Whether you must switch to a particular electricity retailer or plan
- Whether joining affects your battery warranty
- How to leave, and whether there are exit fees
Sources
Facts on this page were checked on 26 September 2026. Rules and programs change, so confirm details with your installer.
Frequently asked questions
Will a VPP leave me without power?
Offers usually keep a minimum level of charge in your battery for your own use, but this varies. Check the reserve level in the terms before you join.