What is a Virtual Power Plant (VPP)?

A Virtual Power Plant (VPP) is a group of home batteries that are digitally connected and work together.

When the electricity system needs support, a VPP can draw small amounts of energy from many batteries to help keep the grid stable. This helps manage high demand periods and supports more renewable energy.

Your battery stays at your home. It is simply connected and coordinated through software.

What does participation in a VPP mean for customers?

Joining a VPP means you agree to let a VPP provider manage when your battery exports energy to the grid.

Details such as when exports can happen and what you receive in return, including payments, credits, or other benefits, are set out in the agreement between you and the VPP provider.

Under PDRS, a rebate is available when you can show that your battery is actively connected to and participating in an approved VPP.

How does participation in a VPP benefit customers?

Customers who join a VPP can:

• receive a PDRS rebate for connecting their battery
• earn ongoing payments or electricity bill credits from their VPP provider
• improve the overall value of their battery over time
• help support a more reliable electricity grid
• still use their battery for their home energy needs

Do I need to have a battery already installed to join a Virtual Power Plant?

Yes, you need a battery to join a Virtual Power Plant.

You can join a VPP in two ways:

• When installing a new battery
  • You can choose a battery that’s compatible with your chosen VPP and join as part of the installation process.
• If you already have a battery installed
  • You may still be able to join a VPP, as long as your battery meets the VPP’s technical requirements.

Not all VPPs work with all battery models. Each VPP provider has its own list of compatible batteries, based on how their systems communicate and control devices.

The best next step is to check with the VPP provider you’re considering to confirm whether:

• your existing battery is compatible, or
• the battery you’re planning to install will work with their VPP.

If you’d like help checking compatibility or understanding your options, we can help guide you.

Will joining a VPP affect my ability to use my battery?

Your battery will still be used mainly to support your home.

The VPP will only access your battery at certain times, usually during peak demand periods, and only under the rules set out in your VPP agreement.

Most of the time, your battery will operate as normal to help lower your energy bills.

How long do I need to stay in the VPP program?

You can usually leave a VPP at any time, but some providers may apply conditions if you leave early.

For example, if you received an upfront benefit such as a sign-up payment or discount, the VPP provider may:

• charge an early exit fee, or
• ask you to repay part of the benefit.

The exact details are set out in your VPP agreement, so it’s worth checking this before you join.

Can I leave a VPP program if I’m not happy with it?

In most cases, yes.

Some VPP providers have fees or repayment rules if you leave early, especially if you received an upfront incentive. Your VPP agreement will explain how to exit and whether any costs apply.

How do VPP operators compensate participants?

This depends on the VPP provider. Payments may include:

• regular cash payments
• electricity bill credits
• discounted electricity rates
• an upfront payment or discount

Your VPP agreement will explain exactly how this works.

Can I see what the VPP is doing with my battery?

Most VPP programs offer an app or online portal where you can:

• see how your battery is performing
• view VPP activity
• track payments or credits

The level of detail varies by provider.

What are the technical requirements for my battery to join a VPP?

The two main requirements are:

• a battery that’s compatible with the Virtual Power Plant you want to join, and
• a reliable internet connection, such as NBN or 4G, so the VPP can communicate with your battery.

Each VPP provider has its own list of compatible batteries, so it’s important to confirm compatibility directly with your chosen provider.

How much rebate can I receive for joining a VPP?

Under PDRS, eligible New South Wales households can receive up to $1,015 when connecting an eligible battery to an approved Virtual Power Plant.

The exact amount depends on your battery size and Priority Group status.

Visit www.mactradeservices.com.au/new-south-wales/virtual-power-plant for exact rebate amounts for your battery.

Why do you need photos and documents?

To approve PDRS rebates, we must be able to prove that your battery is eligible and connected to an approved VPP.

Photos and documents are the simplest way to confirm this and meet government requirements.

What should I do if my battery model is not listed?

We strive to keep our list of eligible models updated, but new products enter the market regularly.

If your model is not listed, contact us with the specific model details. If it meets the criteria, we will update our website so you can proceed with your application.

When will I receive the rebate?

Once your application is approved, payments may take up to 60 days.

Each application is assessed for compliance, which contributes to the processing time.

Can the PDRS VPP rebate be combined with other offers?

Yes. The rebate can be combined with other promotions, including cash back offers.

VPP rebates can also be combined with battery installation incentives, maximising your total savings.

Which VPP providers are available under PDRS?

In New South Wales, there isn’t a government approval list for VPPs under PDRS.

To access a PDRS VPP rebate, your battery must be connected to a VPP that MAC Trade Services partners with.

You can view the current list of partner VPPs at https://mactradeservices.com.au/new-south-wales/virtual-power-plant.

If you’re interested in joining a VPP that isn’t listed, we encourage you to ask the provider to get in touch with us to explore becoming a partner.

Why is eligibility limited to batteries between 2 and 28 kWh?

Under the Peak Demand Reduction Scheme, rebates are designed around typical household energy needs.

For this reason, the scheme sets a hard upper limit of 28 kWh on battery size.

Batteries larger than this can still be installed and may still join a Virtual Power Plant, depending on the provider, but they are not eligible for the PDRS rebate.