Australia is seeing a surge in solar battery adoption, particularly driven by the CER’s Small-scale Renewable Energy Scheme.
About 166K batteries were installed in the second half of 2025 alone, and for good reason.
Installing a solar battery lets you power your home overnight, reducing electricity bills dramatically.
But that’s not their only advantage.
When you become a part of Virtual Power Plants (VPPs), you can unlock even greater ROI from your batteries by getting financial incentives for contributing to grid stability.
But how do they work, and how can you make your solar system investment work harder using VPPs?
Let’s break it all down.
What is a Virtual Power Plant (VPP)?
In simple terms, it’s a network of solar panels and batteries installed in various households across the country. This network is managed by a single software solution that’s run by a VPP operator. As an aggregate, the network acts like a large power station.
Whenever energy demand hits the roof, the VPP operator can tap into the stored energy in these batteries to meet the grid’s requirements, helping avoid blackouts.
But what’s in it for you?
You’re compensated for maintaining the grid’s stability. This payment could be a fixed sum, per-event, or even tied to the power your battery supplies.
ACCC estimates that over 38000 customers are involved in VPPs in the National Electricity Market states.
How VPPs Make Your Solar Battery More Valuable
During normal operation, your solar battery will function just how it usually does: charging from solar and discharging to power your home.
But when the VPP operator chooses to harness the stored energy in the solar battery to support the grid, they offer financial incentives for the energy they use. These could be in the form of credits or cash payments.
In a nutshell, becoming a part of a VPP helps you harness the unused energy in your battery to build a small passive income stream.
Apart from the financial gains, you also contribute to the grid’s stability, which ensures an uninterrupted power supply to your home.
And those aren’t the only benefits of using VPPs.
When a VPP operator manages your battery, they’ll be able to extend its life by optimising the charge/discharge cycles. Instead of a pre-programmed schedule, they can do so based on real-time grid conditions for efficient cycling.
In addition, you gain greater insights into your battery through the VPPs. Some of them offer apps and dashboards that let you track your energy use, battery health, and earnings.
Major VPP Programs in Australia
VPP adoption is rising and is expected to get a further boost as the AEMC has allowed VPPs to compete with large-scale generators by 2027. It’s no surprise then that several VPP programs have launched to take advantage of this opportunity.
If you’re looking to harness the power of your solar battery to generate an additional income stream, here are the major VPP programs you should consider:
Powow
The Powow VPP trades energy in all six FCAS markets of Australia, giving you access to a large user base that may need energy from your battery. In addition, the VPP is fully retailer-agnostic, meaning you can choose any energy retailer and switch without a lock-in.
Benefits
- $20 monthly discount on fixed payments for PPA customers.
- Get $1 of VPP credits for every kWh of power your battery supplies (up to $300/year).
- Dedicated battery and credit tracking app.
Eligibility Criteria
- Available in NSW, SA, VIC, QLD, and ACT.
- Must have a compatible Hinen or Sigenergy solar battery and inverter.
- You must have a Powow meter and connect it to the internet.
Amber
Amber SmartShift gives you the full financial upside of selling your battery’s power to the electricity market. Instead of taking a cut from your earnings, they charge a $25/month subscription fee to be a part of the VPP.
You also get access to the SmartShift algorithm that manages the charge/discharge cycle of your battery to optimise its capacity and life.
Benefits
- You have full control over the battery charge/discharge optimisation.
- Smartphone app for tracking wholesale prices, managing battery, and tracking earnings.
- You get wholesale feed-in rates for your exported energy instead of a fixed one.
- Can save up to $1500 to $3000 annually.
Eligibility
- You must have Amber as your energy retailer.
- Battery size should ideally be above 10kWh.
- Should be in SA, NSW, VIC, ACT, and QLD.
- Batteries can be from multiple brands like Tesla, SolarEdge, and more.
Future-Proofing Your Solar Investment
Opting to purchase a solar power generation system and batteries can help you reduce Carbon emissions and move toward a more sustainable future. It also reduces your dependency on the grid for power supply and cuts your electricity bills.
With VPPs, you can further increase your battery ROI as they help you harness the unused stored power and gain financial benefits for the same. And given that solar batteries last for over a decade, it’s a great long-term investment.
VPPs play an important role in driving renewable energy adoption as they make it lucrative to invest in a solar system. Grids also become more resilient owing to the intervention by these VPPs when power demand shoots up.
Make Your Solar Battery Work Harder
VPPs help you get better returns from your existing or new solar setup by ensuring that battery capacity is fully utilised and you’re compensated fairly for it. The centralised control of the charge/discharge cycles further helps prolong your battery life.
And while you gain financial benefits, the grid remains stable, and the chances of blackouts drop. It’s a win-win for everyone.
Want to find the right VPP for your home and start improving your solar ROI? Get in touch with our team today. Our customers have, on average, saved over $40,000 with solar energy investments.
