Virtual Power Plants (VPP)
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’s just 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.
The details, such as when exports can happen and what you receive in return (payments, credits, or other benefits), are set out in the agreement between you and the VPP provider.
Under REPS, 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 REPS rebate for connecting their battery
- earn ongoing payments or bill credits from their VPP provider
- receive ongoing VPP participation payments or credits from the VPP operator
- 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’ll need a battery to join a Virtual Power Plant (VPP).
You can join a VPP in two ways:
- When you install 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.
However, 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 (like 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.
Just keep in mind that 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 things you’ll need are:
- a battery that’s compatible with the Virtual Power Plant (VPP) you want to join, and
- a reliable internet connection (such as NBN or 4G), so the VPP can communicate with your battery.
Not all VPPs work with all battery models. Each VPP provider has its own list of compatible batteries.
Because of this, it’s important to check directly with your chosen VPP provider to confirm whether your battery is compatible.
Rebate Information
How much rebate can I receive for joining a VPP?
Under REPS, eligible South Australian households can receive up to $2,050 when connecting an eligible battery to an approved VPP.
The exact amount depends on your battery size and Priority Group status.
Visit https://mactradeservices.com.au/south-australia/virtual-power-plant for exact rebate amounts for your battery.
Why do you require information about whether I have a concession or health care card?
The Retailer Energy Productivity Scheme (REPS) includes a Priority Group. Priority or Hardship Households may be eligible for an additional rebate of up to 30%.
We ask if you hold an eligible concession or health care card so we can check whether the additional rebate applies.
I’m renting, am I eligible for Priority Group status?
If you rent your home for $500 per week or less, you may be eligible for Priority Group status and the additional rebate of up to 30%.
To qualify under this criterion, you must hold the tenancy over the whole residential premises (for example, the full house, unit, or apartment) and be named on the lease.
Residential premises with partial tenancy are not eligible for Priority Group status. This includes:
- subletting or subleasing a room within a property
- boarders or lodgers paying for a room in a shared house
- any arrangement where you do not hold the tenancy over the entire premises
You may still qualify for Priority Group status through one of the other criteria, such as holding an eligible concession or health care card, or being on an energy retailer payment plan or hardship program.
If you’re unsure whether your situation qualifies, get in touch and we’ll help you work it out.
Why do you need photos and documents?
To approve REPS rebates, we must be able to prove that your battery is eligible and that it’s 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, please 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.
Our team conducts assessments on each application to ensure compliance, which contributes to the processing time.
Can the REPS 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 approved under REPS?
Only VPPs approved by the South Australian Government Department for Energy and Mining are eligible for REPS incentives.
MAC Trade Services partners with all major approved VPP providers.
For the full list of VPPs we partner with, visit https://mactradeservices.com.au/south-australia/virtual-power-plant
Why is the rebate amount capped to 28kWh in battery capacity?
You can install a battery larger than 28 kWh, but the rebate is only calculated on up to 28 kWh of capacity.
This cap is set by the scheme rules and is consistent with how similar programs are designed.
For most households, batteries in this range are more than enough. As a guide, a typical home uses around 20–25 kWh of electricity per day, so a battery of this size can store a full day’s energy for later use.
