What’s a Virtual Power Plant (VPP) — and Why Does Your Battery Need to Be Ready for It?

If you’ve looked into getting a home battery — or even just installing solar — you might’ve seen this term pop up: VPP.

So… what’s a VPP?

VPP stands for Virtual Power Plant. And yes — it’s exactly what it sounds like. Instead of one big power station, a VPP is a network of smaller energy systems (like your home battery) connected via the internet, working together to help balance the grid.

Here’s how it works:

• Your solar panels generate energy

• Your battery stores that energy to power your home

• Your stored energy can be shared back into the grid when it needs extra energy

A VPP operator can remotely control when your battery sends power to the grid. Their job is to keep the grid stable. VPP only uses your stored energy when needed. You stay in control. Your home’s power needs always come first. If you join a VPP, you might earn money or bill credits for sharing energy. Win-win!

The Federal Government’s new battery incentive requires your system to be VPP-ready (if you’re on the grid).

Wait, do I have to join a VPP?

Not at all. Your battery just needs to be VPP-capable — meaning it could join a Virtual Power Plant, but you’re not required to opt in.

Here’s what that means:

• Your battery must be connected to the grid (not off-grid)

• It needs to have an internet connection

• It must be technically able to respond to signals from a VPP operator (like your electricity provider or the local network company)

So while you don’t have to join a VPP, your system just needs to be ready in case you want to later — or if the grid needs smarter coordination in future.

Not sure what kind of battery you need? We’ll help you design a VPP-ready system that suits your home — and your future energy goals.

Wattle Powr makes it easy

We handle everything — design, compliance, installation, documentation — and we’re fully accredited. Just get your quote and we’ll do the rest.