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People with a battery, or installing a battery
Need to install a battery?
This incentive can be combined with the Australian Government’s Cheaper Home Batteries Program discount.
Overview
You can receive an incentive for connecting your solar battery to a virtual power plant (VPP). In addition to this incentive, connecting to a virtual power plant allows you to sell your excess electricity to the grid on an ongoing basis to power your neighbours’ homes while you get paid.
What is a virtual power plant (VPP)?
Virtual power plants are connected groups of batteries that allow excess stored power to be sold to the grid during times of peak demand.
Connecting more batteries across NSW to virtual power plants will help reduce NSW’s emissions by 70% by 2035 and achieve net zero by 2050.
Find out more about virtual power plants.
Case study
"We get to control our energy system completely as part of a VPP. So I can decide when I want to sell power into the grid or I can leave it to my provider to make that decision for me.
I can also buy power from the grid when it's very cheap, and I can sell it back into the grid when the feed-in tariff is much higher."
– Ken and Corinne, NSW homeowners on building their own power system by installing solar, home battery and joining a virtual power plant (VPP).
How much is the incentive
Connecting your battery to a virtual power plant will allow you to be paid both:
- An upfront payment from this NSW Government incentive for connecting your battery to a virtual power plant. This incentive is in addition to other offers virtual power plant providers may offer you.
- On an ongoing basis, as you continue to sell your excess stored energy to the grid through your virtual power plant arrangement.
The upfront incentive you receive depends on the usable capacity of the battery in kilowatt-hours (kWh). Larger batteries up to 28kWh will receive a larger incentive.
The actual incentive amount you receive will vary depending on factors like:
- The virtual power plant provider you choose.
- The contract you agree to with your virtual power plant provider, setting out the conditions you will work together under. This can include the price you receive for your excess electricity, and the timing of when the virtual power plant can access your battery.
Find out the actual incentive amount you can receive and get the best deal by comparing offers from multiple virtual power plant providers who offer this incentive. You will also want to consider both the upfront incentive you receive, and how much income you can generate from the virtual power plant in the long-term.
The incentive can be claimed once per National Metering Identifier (NMI), or unique electricity meter.
You may receive the incentive in instalments, as an upfront payment or as credit off your power bill.
Who can get the incentive
All households and small businesses in NSW may be eligible for this incentive.
To be eligible for this incentive you’ll need:
- An eligible battery up to 28kWh. All batteries installed with the NSW Government battery discount are eligible for virtual power plants. If you don’t have a battery, you might be eligible for a discount on installing a virtual power plant-compatible battery through the Australian Government’s Cheaper Home Batteries Program. Only batteries up to 28kWh in size can access this virtual power plant incentive.
- To use a virtual power plant provider offering this incentive. You may need to ask if they are offering this incentive from the NSW Government.
- To be with an electricity retailer offering virtual power plants. Not all electricity retailers are compatible with virtual power plants, so you may need to change your retailer.
How to get the incentive and connect to a virtual power plant
Contact multiple virtual power plant providers. It’s a good idea to compare offerings from more than one provider. Each provider offers different conditions, such as the price you receive for your excess electricity, and the timing of when the virtual power plant can access your battery.
Virtual power plant providers will check your eligibility for receiving this incentive.
Virtual power plant providers work independently from the NSW Government, choosing which battery models they work with, which locations they operate in, and what services they offer.
Virtual power plant providers offering this incentive include:
If you are a virtual power plant provider offering the incentive through an Accredited Certificate Provider (ACP) and would like to be listed here, please contact us at [email protected]
Your chosen virtual power plant provider will give you a contract and nomination form.
You must sign the nomination form before you can receive any incentive.
The virtual power plant provider will also ask you to sign a contract that specifies the conditions of how they will access your battery. This can include how much you will be paid, how much battery capacity they can access, and when they can access your battery’s energy to contribute to the grid.
They will also provide you with a fact sheet with information and FAQs on how to connect to a virtual power plant. If you have any issues or questions, contact your virtual power plant provider for assistance.
Once you have completed the paperwork, your virtual power plant provider will give you a cooling off period.
During this cooling off period, you can continue to consider whether the virtual power plant arrangement you’ve been provided is right for you. If you would like to change the conditions of the contract or cancel the contract, contact your virtual power plant provider.
Once the cooling off period has ended, the virtual power plant provider will provide you an online form to complete. Once this form is completed and your details are confirmed, you will receive your incentive.
Frequently asked questions
Virtual power plant providers remotely manage multiple batteries to share excess stored energy to the grid.
Each provider offers different conditions, such as:
- the price you receive for your excess electricity
- the timing of when the virtual power plant can access your battery
- how much battery capacity the virtual power plant can access.
Each provider offers different conditions, so you should compare offers from multiple providers.
Virtual power plant providers work independently from the NSW Government, choosing which battery models they work with, which areas they operate in and what services they offer.
You can benefit from connecting your battery to a virtual power plant by:
- receiving an upfront payment through this incentive
- making money selling your battery’s excess stored electricity, like the payments you can receive for selling your solar power to the grid
- earning money to help you pay off your solar panels and battery faster.
The Australian Government’s new Cheaper Home Batteries Program is now available. This provides households and businesses a discount when installing an eligible battery.
Yes, if you have installed a battery using a discount from the Australian Government’s Cheaper Home Batteries Program, you can also take advantage of the NSW Government’s incentive for connecting a battery to a virtual power plant (VPP). All batteries installed under the Cheaper Home Batteries Program can be connected to a virtual power plant.
Batteries with a storage capacity between 2 and 28 kWh are eligible for this incentive. The incentive provided depends on the usable capacity of the battery.
Batteries that are 28 kWh or larger are not eligible to claim this incentive. We may review the battery sizes eligible for this incentive in future.
No. If your battery is not connected to the grid, you are unable to join a virtual power plant.
If you have already claimed the NSW Government’s virtual power plant incentive between 1 November 2024 and 30 June 2025, you are unable to claim the incentive again. However, your virtual power plant provider may contact you regarding additional incentives that you may be eligible for because of this change.
Contact and support
If you have any questions or issues with this incentive, you should contact your virtual power plant provider.
If you are unhappy with your virtual power plant provider, including the incentive and contract conditions they are offering you, we recommend comparing offers from other providers. These offers can differ significantly in terms of the incentive they are offering, and how they access your battery.
If you are unable to identify your virtual power plant provider or if you think your provider has breached the terms of the contract you signed, you should contact the scheme administrator, the Independent Pricing and Regulatory Tribunal (IPART).
If you are unable to resolve matters, you may ask NSW Fair Trading to assist you.
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