What is a virtual power plant (VPP) and should I join one?
By My Energy Mate Editorial · Last updated
Quick Answer
A VPP is a network of home batteries coordinated by an operator that trades their stored energy on the electricity market, paying you credits or upfront incentives. Joining typically earns A$100-400 a year, in exchange for ceding some control of your battery.
VPP deals vary enormously: some pay flat annual credits, some share trading profits, some (like Amber) expose you directly to wholesale prices. The catch is cycling: aggressive VPPs work your battery harder, consuming warranty throughput.
In NSW, joining an approved VPP also unlocks the state's Peak Demand Reduction Scheme incentive on top of operator payments.
Our rule of thumb: join a VPP that guarantees a minimum battery reserve and caps cycles, or one that pays enough to buy the battery's degradation. Never lock into a VPP that voids or shortens your battery warranty.
Go deeper: Home Batteries comparison table or the cost guide.