If you live in New South Wales and are considering getting a solar battery, you’ve probably heard about the new rebate. You might have also seen the part about joining a Virtual Power Plant (VPP) to qualify for a second rebate.
That’s where things can get confusing. A lot of homeowners we speak with say the same thing:
“I want to make the most of the rebate, but I don’t fully understand what a VPP is — or if it’s worth it.”
Don’t worry; this guide is here to help you work through that decision. At PSC, we walk dozens of customers through this every day. We’re here today to walk you through what the rebate is, what a VPP does, and what the trade-offs look like so you can make the right call for you.
In this article, you’ll learn about the following:
- What Is a VPP, and Why Is It Part of the NSW Battery Rebate?
- What is the NSW Battery Rebate?
- How Do VPPs Work in Real Life?
- What Are the Benefits of Joining a VPP?
- What Are the Trade-Offs of Joining a VPP?
- Is a VPP Right for You? Key Questions to Ask
By the end of this article, you’ll know what a VPP is and how signing up for one can put some money back in your pocket.
What Is a VPP, and Why Is It Part of the NSW Battery Rebate?
A Virtual Power Plant, or VPP, is a program that allows your solar battery to work as part of a larger energy network. Residential solar batteries connect together via cloud-based software. When you join a VPP, you agree to share a portion of your stored solar energy with the grid during times of high demand.
The connected batteries support the grid when it’s under stress. Such as during a summer heatwave or a sudden power spike in your neighbourhood.
Think of it like this: instead of your battery just sitting there powering your home, it becomes part of a community of individual solar batteries that work together to relieve the grid.
Here’s how it works in real time:
- You charge your battery as you normally would, using solar energy from your panels during the day.
- When the grid is under strain — typically during extreme weather, early evening peaks, or unplanned outages — your VPP provider has permission to discharge some of your stored energy. This helps balance supply and demand across the electrical network.
- In exchange, you get paid for it. This might be a one-time rebate (like the $250–$400 VPP incentive), ongoing credits on your electricity bill, or direct payments, depending on the provider you sign up with.
It’s important to note that these VPP events don’t happen every day. They usually occur regularly during the year, often lasting only a few hours.
So why has the NSW Government tied a portion of the battery rebate to VPP participation?
It’s about grid stability.
When thousands of homes store small amounts of energy, they can work together to support the grid. By feeding energy back during peak times, VPPs help prevent blackouts and reduce the need for emergency coal or gas generation. This also eases pressure on energy infrastructure.
In simple terms, a VPP turns your battery into a team player. You still use it for your own home most of the time, but periodically, you lend a little power to the wider community — and get paid for it.
If you’re interested in learning a bit more about VPPs, you might want to check out the following article titled, What is a Virtual Power Plant (VPP)?
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What is the NSW Battery Rebate?
The NSW Government rolled out a rebate to make solar batteries more affordable for homeowners. The goal is simple: help more households store their solar energy and reduce pressure on the electrical grid — especially during peak demand times.
For many families, the upfront cost of a solar battery is a hurdle. Officials designed this rebate to take the edge off the upfront price and make the long-term benefits of storage more accessible.
Here’s a breakdown of how it works:
- If you already have solar panels on your roof, you can claim up to $2,400 off the cost of adding a battery when you go through an approved installer like PSC. The actual rebate amount depends on the battery size you choose, but larger systems tend to unlock higher savings. This price is around what you will save when you choose one of our batteries.
- If you’re installing solar panels and a battery at the same time, the rebate still applies — it’s part of the quote. That means you’ll see the savings upfront as part of the total system cost.
- If you agree to join a Virtual Power Plant (VPP), you could receive an additional $250–$400 rebate. This VPP incentive is separate from the main battery rebate and is available even if you’ve already claimed the larger discount on a battery.
- You can actually claim the VPP rebate twice over the life of your battery — once every three years, as long as your battery has at least six years left on its warranty.
To qualify for either rebate, there are a few key requirements:
- You must install a battery from the CEC-approved list, which includes systems that meet strict safety, performance, and warranty standards. Your installer will know what systems qualify and which ones don’t.
- Your battery must have a 10-year warranty and be able to retain at least 70% of its storage capacity at the end of that period.
- The system must be installed by a certified installer (like PSC), and the battery must be capable of connecting to the internet and a VPP, even if you’re not planning to join one right away.
It’s also worth noting that the rebate is only available for new battery purchases. You won’t be eligible for the upfront rebate if you already have a battery.
Remember: To claim the VPP portion of the rebate, you must sign up with a participating VPP. This incentive can be claimed twice, with a minimum of three years between claims.
If you’re interested in learning a bit more about the solar battery rebate, you might want to check out the following article titled, Everything You Need to Know About the Home Battery Rebate for NSW.
How Do VPPs Work in Real Life?
While the idea behind all Virtual Power Plants is similar, every provider runs their program a little differently. Your benefits can vary depending on which VPP you join and how they’ve set up their terms.
That said, most VPPs have a few main features in common:
- Scheduled “grid support” events: These are the moments when your battery is called upon to help the wider electrical network. They usually happen during heatwaves or high-demand evenings. Your provider will send out a notification and then discharge a portion or all of your stored energy to support the grid.
- Earnings and credits: In return for participating, you may receive bill credits, direct payments, or usage-based rewards. The exact amount depends on the VPP and how much energy your battery can provide during events. Some households earn a few hundred dollars a year, especially if they’re part of a more active program.
- Opt-out options: Some VPPs give you the flexibility to opt out of specific events or leave the program entirely with notice. Others have fixed terms, like a 12- or 24-month agreement, so it’s worth checking the fine print before you sign up. If flexibility matters to you, that should be part of your decision-making process.
In other words, your battery is still working for your home most of the time. But every so often, it also helps your neighbours — and you get paid in the process.
If you’d like to learn a bit more about problems with the NSW battery rebate, you might want to check out the following article titled, Are You Eligible for the NSW Battery Rebate? Problems and Considerations.
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What Are the Benefits of Joining a VPP?
Here are some of the key benefits we mentioned:
- An additional rebate up front: If you agree to join a VPP when installing your battery, you’ll be eligible for an extra $250–$400 rebate. This is on top of the primary battery rebate and can help reduce your initial out-of-pocket costs. As we mentioned, that rebate can be claimed again later in the battery’s life (every three years, up to twice total), provided your battery still meets the warranty requirements.
- Ongoing earnings or bill credits: Some VPP programs offer small payments or electricity bill credits when your battery participates in grid events. While it’s not a huge revenue stream, it’s a nice contribution.
- Supporting the energy grid: When your battery shares energy during peak demand, you’re helping reduce the risk of blackouts and easing pressure on the electrical grid. You’re helping your community stay powered, too.
In short, a VPP can offer a blend of financial, environmental, and practical benefits. You still get all the usual perks of solar battery storage, plus a little extra value along the way.
If you’re interested in learning a bit more about weighing the cost of solar against the cost of the grid, you might want to check out the following article titled, Cost of Solar Panels vs. Cost of Energy from the Grid.
Let’s talk solar savings. Click here.
What Are the Trade-Offs of Joining a VPP?
While VPPs offer some clear benefits, they’re not the right fit for everyone. If you’re considering joining one, it’s worth thinking about how it might affect your battery setup, your energy goals, and your expectations for backup power.
Here are a few potential drawbacks to be aware of:
- You give up control during grid events: When you join a VPP, you agree to let your provider decide when and how much of your battery’s energy to share during certain events. If you like having complete control over your stored energy at all times, this is something to consider.
- Your battery might not be full when you need it most: If there’s a grid outage shortly after a VPP event, it may have already shared its stored energy and might not have a full charge available for backup. This isn’t a dealbreaker for most people, but if you live in an area with frequent blackouts, it should influence your choice.
- Programs vary in terms and value: Not all VPPs are created equal. Some require you to commit for a set period of time or place limits on how your battery can be used. Read the provider’s agreement carefully and ask questions if anything is unclear.
- It may influence how your system is sized or installed: If you plan to join a VPP from the outset, your installer might recommend a larger battery. That’s not necessarily a bad thing, but knowing ahead of time is helpful, especially if you’re comparing quotes or working within a specific budget.
A VPP can be a smart way to get more value from your battery, but it’s not a one-size-fits-all solution.
Before signing up, it’s worth reviewing the details and making sure the program aligns with how you want to use your battery.
If you want to learn a bit more about how your solar system will work in a blackout, you might want to check out the following article titled, Will Your Solar Panels Work During a Blackout?
Get started with solar. Click here.
Is a VPP Right for You? Key Questions to Ask
If you’re on the fence about joining a Virtual Power Plant, that’s completely normal. It’s a newer concept for many homeowners, with no single “correct” choice.
What matters most is whether the setup aligns with how you plan to use your battery —now and in the future.
Here’s a simple set of questions to help you decide:
- Do I care more about grid savings or blackout backup?
- Am I comfortable letting someone else access my battery during a peak event?
- Does the VPP allow me to leave if I change my mind?
- Is the VPP rebate worth the trade-offs of joining one?
- What does my installer say about battery size, usage, and setup?
There’s no one correct answer here. Some people love the idea of putting their battery to work. Others would rather keep complete control for blackout protection. Both are valid.
If you’re interested in learning a bit more about the importance of a good installer for your solar (the most important component of any system, seriously), you might want to check out the following article titled, In-house Installers vs. Subcontractors: Which is Better?
Let’s go solar today. Click here.
Is It Worth Joining a VPP for the Rebate?
If you’re planning to get a solar battery anyway, and the VPP terms look fair, then yes — joining a VPP could absolutely be worth it. You’ll lower your upfront cost, potentially earn a bit more over time, and contribute to a more resilient energy grid.
But if you’re mainly getting a battery for blackout protection or energy independence, you may want to skip the VPP and stick with full control.
At PSC, we know the rebate is a good opportunity. But the most important thing is finding a setup that matches how you actually want to use your energy. And when you’re ready for that, we’re here to help out. It’s what we do.
If you’d like to learn a bit more about what solar batteries are on the market, you might want to check out the following article titled, 6 Best Solar Batteries on the Market.
