This blog post was accurate at the time of publishing. However, programs, policies and rebates may have changed since then. We recommend checking our website or contacting us directly for the most current information on 1300 430 917.
What’s a Virtual Power Plant — and Why Does It Matter for Your Battery?
If you have a home battery or are thinking about getting one, big changes are coming your way. Starting 1 July 2025, a new mix of government incentives could put serious cash back in your pocket, especially if you connect your battery to a Virtual Power Plant (VPP). You’ll also be helping Australia move toward a cleaner, more reliable energy future.
Let’s break down the changes in plain English:
What’s a VPP?
A Virtual Power Plant (VPP) is a group of batteries that work together to share energy and support the electricity grid.
Here’s how it works:
You have an existing or a new battery where you store your power.
- You have a choice to use that stored power solely for your own personal use, or you can connect your battery to a VPP provider and feed some of your stored energy back to the gird and be paid for it.
- You connect to a VPP by contacting a provider that has a VPP compatible with your battery (list of providers here: Virtual Power Plant (VPP) Comparison Table – SolarQuotes)
- During peak demand (when power is expensive), your VPP could draw and sell up to 80% of your stored power back to the grid and pay you a premium for it. Just like exporting your solar and receiving a solar feed-in tariff, but for your battery. You are left with 20% for your own personal use to power your home and to take you through to the next solar window where you can charge it up again.
- Not all virtual power plants work the same; some let you choose when you want to export or trade your battery power, while others do it automatically when the energy market needs it. It’s a good idea to compare options and pick the one that suits you best.
- Joining a VPP not only reduces the payback period on your battery, you are helping to stablise the grid and in some states receive up to 2k in a ‘cash back’ rebate for joining up to one.
What’s Changing?
Federal Battery Rebate
The federal government’s Cheaper Home Batteries Program (CHBP) is offering a new rebate to help more Australians afford the installation and purchase of batteries:
- The rebate will discount the cost of a battery by around 30%.
- The rebate is not means tested; all homeowners and small businesses can apply.
- The rebate is available to all new battery installations from 1st July.
- Batteries must be connected to Solar PV and must be VPP capable to be eligible for the rebate.
Example: For a 13.5 kWh battery, you could save around $4,625. This discount should appear on your quote as a point-of-sale discount so you can save straight away.
What Additional Rebates Can You Get and stack with the Federal one?
New South Wales
- The NSW battery rebate program has been suspended and will be replaced with the Federal Battery rebate on 1st July 2025.
- Households and small businesses will be able to get up to $1,015 for connecting their battery to an eligible VPP.
- You can combine the VPP rebate with the federal rebate to boost your total savings
Example:
| Battery Size | Battery Rebate | VPP Rebate | Total Saved |
| 13.5kWh | $4,625 | $489 | $5,114 |
| 20 kWh | $7,068 | $725 | $7,793 |
| 28 kWh | $9,895 | $1,015 | $10,910 |
Right now in NSW, only 5% of people who installed a battery under the current battery rebate have connected it to a VPP which means thousands are missing out on extra cash.
Why? Because the VPP rebate isn’t automatically applied when you connect to a VPP. You need:
- A VPP-capable battery.
- To join a VPP that is compatible with your battery and receive a connection confirmation.
- The welcome letter provided to you by your VPP retailer will give you instructions on how to claim your VPP subsidy through their partnered accredited provider.
- You then need to lodge your application to claim the rebate with that provider, uploading documents confirming your connection status.
- Once lodged, the provider will review the application and if complete and correct, your cash rebate will be transferred to you within 60 days of your claim.
Already applied with us for the VPP rebate and wondering if you can get the higher rebate?
If you’ve already submitted your VPP rebate application, there’s nothing you need to do. We will automatically apply the updated rebate value to your application for you.
- If your payment hasn’t been made yet, we’ll adjust the amount before it’s processed.
- If you’ve already been paid, we’ll organise a top-up and contact you to confirm your bank details before sending the additional amount.
One important change: Under the new rules, the rebate can now only be claimed once per property. This means that if you’ve already received the rebate, you won’t be eligible to claim it again in the future, even if you switch to a different VPP provider.
South Australia
- South Australia is leading the way in clean energy and offers VPP rebates. Over the last two years, nearly $2 million in VPP rebates have been paid out to households connecting their batteries to eligible VPP providers.
- When you connect your new or existing battery to an eligible VPP, you can claim a cashback rebate of up to $2,050
- The rebate value varies depending on the size of your battery and your concession card status. You can calculate the value of your rebate here: Virtual Power Plant Rebates | MAC Trade Services
- The state VPP rebate can be stacked with the federal rebate, meaning even more savings.
Check to see if you are eligible
Speak to the Experts
With a falling solar feed-in-tariff, huge battery rebates and VPP subsidies, there has never been a better time to become energy independent. Virtual Power Plants are a key part of Australia’s energy transition, not just supporting households but our energy grid in times of need.
Call the MAC TS team today to help with any questions or guidance on what systems and rebates may be right for your needs.
At MAC Trade Services, we’ve already paid out nearly $2 million in VPP rebates and we’re just getting started.
Backed by over 11 years of experience and trusted by leading Virtual Power Plant retailers, MAC Trade Services makes claiming your rebate easy, reliable, and fast.
1300 430 917
📧 customerservice@mactradeservices.com.au
📍 134 Fullarton Road, Rose Park, South Australia, 5067
