{"id":55080,"date":"2026-03-06T14:41:50","date_gmt":"2026-03-06T04:41:50","guid":{"rendered":"https:\/\/flowpower.com.au\/residential\/tips-and-insights\/5-simple-tips-for-maintaining-your-new-home-battery-2\/"},"modified":"2026-03-06T14:47:48","modified_gmt":"2026-03-06T04:47:48","slug":"what-is-a-virtual-power-plant","status":"publish","type":"post","link":"https:\/\/flowpower.com.au\/residential\/tips-and-insights\/what-is-a-virtual-power-plant\/","title":{"rendered":"What is a Virtual Power Plant"},"content":{"rendered":"","protected":false},"excerpt":{"rendered":"","protected":false},"author":20,"featured_media":55082,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-55080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy-knowledge"],"acf":{"page_builder":[{"acf_fc_layout":"blog_hero","title":"<h2><span class=\"NormalTextRun SCXW55843119 BCX0\">What<\/span><span class=\"NormalTextRun SCXW55843119 BCX0\">\u00a0<\/span><span class=\"NormalTextRun SCXW55843119 BCX0\">is a<\/span><span class=\"NormalTextRun SCXW55843119 BCX0\">\u00a0<\/span><span class=\"NormalTextRun SCXW55843119 BCX0\">Virtual Power Plant (VPP)<\/span><span class=\"NormalTextRun SCXW55843119 BCX0\">: pros, cons\u00a0<\/span><span class=\"NormalTextRun SCXW55843119 BCX0\">and should you join one?<\/span><\/h2>","blurb":"Discover how Virtual Power Plants (VPPs) work, their benefits and drawbacks, and whether joining a VPP is right for your home or business. ","read_length":"8 mins","background_colour":"dark-blue"},{"acf_fc_layout":"blog_article","sections":[{"acf_fc_layout":"content","content":"<span data-contrast=\"auto\">Australia has become a world leader in solar photovoltaics (PV). We now have\u00a0<\/span><a href=\"https:\/\/pv-map.apvi.org.au\/analyses\"><span data-contrast=\"none\">almost 38 GW of total solar generation capacity<\/span><\/a><span data-contrast=\"auto\">\u00a0-\u00a0that\u2019s\u00a0more than\u00a013 times the capacity\u00a0of\u00a0Australia\u2019s largest coal plant,\u00a0Eraring\u00a0Power Station.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">Of the 38GW, the majority is installed on the rooftops of homes and businesses instead of\u00a0large, grid\u2011scale solar projects.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">And\u00a0it\u2019s\u00a0not just solar reshaping the grid. Battery installations have surged since the introduction of the Cheaper Home Batteries Program, with around\u00a0<\/span><a href=\"https:\/\/cleanenergycouncil.org.au\/news-resources\/rooftop-solar-and-storage-report-july-to-dec-2025\"><span data-contrast=\"none\">4.7 GW of storage capacity<\/span><\/a><span data-contrast=\"auto\">\u00a0installed as of early 2026.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">With more households generating (and storing) their own energy, the electricity market is changing fast. Virtual Power Plants (VPPs)\u00a0offered\u00a0an early way to harness the collective power of home energy assets,\u00a0but\u00a0they\u2019re\u00a0not the right fit for everyone.\u00a0There\u2019s\u00a0been a push for more VPP uptake in recent years, but not every household can add solar and battery storage.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">As the push for\u00a0consumers to sign up to a VPP continues,\u00a0we\u2019re\u00a0looking at the options for\u00a0households to\u00a0participate\u00a0in the energy transition.\u00a0Let\u2019s\u00a0start with what a VPP is, how\u00a0they\u00a0work, and what to weigh up before you join\u00a0one.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-ccp-props=\"{}\">\u00a0<\/span>\r\n<h4><b><span data-contrast=\"auto\">What is a Virtual Power Plant?<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h4>\r\n<span data-contrast=\"auto\">You\u2019ll\u00a0find multiple definitions for\u00a0a VPP.\u00a0Generally, the\u00a0term describes\u00a0a decentralised network of solar and battery assets, coordinated by a central operator.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">Think: thousands of households, each with their own\u00a0solar and battery, all\u00a0participating\u00a0in the energy market through a central operator - the VPP provider.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">Some VPPs can also include other energy resources like EVs, or controllable household loads such as hot water systems linked to smart controls.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-ccp-props=\"{}\">\u00a0<\/span>\r\n<h4><b><span data-contrast=\"auto\">How does a\u00a0typical\u00a0Virtual Power Plant work?\u00a0And what are the risks?<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h4>\r\n<span data-contrast=\"none\">In a VPP, the operator can remotely control the combined fleet of assets. That usually means they can:<\/span><span data-ccp-props=\"{&quot;335557856&quot;:16777215,&quot;335559739&quot;:150}\">\u00a0<\/span>\r\n<ul>\r\n \t<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Discharge stored energy to the grid<\/span><\/b><span data-contrast=\"none\">\u00a0when\u00a0it\u2019s\u00a0needed (often during peak demand, when wholesale prices are high), and<\/span><span data-ccp-props=\"{&quot;335557856&quot;:16777215,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n \t<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Charge batteries when there\u2019s surplus energy<\/span><\/b><span data-contrast=\"none\">, helping keep the grid stable (for example, when rooftop solar is flooding the system).<\/span><span data-ccp-props=\"{&quot;335557856&quot;:16777215,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<span data-ccp-props=\"{}\">\u00a0<\/span>\r\n<h4><b><span data-contrast=\"auto\">VPP\u00a0operators\u00a0can\u00a0control\u00a0your\u00a0assets as\u00a0is agreed when signing up to the VPP<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h4>\r\n<span data-contrast=\"auto\">And sometimes, that\u00a0<\/span><a href=\"https:\/\/www.solarquotes.com.au\/blog\/vpp-tips-advice-mb2045\/\"><span data-contrast=\"none\">control can come at your expense<\/span><\/a><span data-contrast=\"auto\">. In plain terms, a VPP could:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n<ul>\r\n \t<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">charge your battery when electricity is expensive for you (when it suits the VPP operator), or<\/span><span data-ccp-props=\"{&quot;335557856&quot;:16777215,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n \t<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">discharge your battery to capture value\u00a0and only some of that value is\u00a0shared with you.<\/span>\r\n<span data-ccp-props=\"{&quot;335557856&quot;:16777215,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<span data-contrast=\"auto\">In some cases,\u00a0it\u2019s\u00a0also possible a VPP discharges your battery during high-price periods, leaving it\u00a0empty\u00a0during a blackout, meaning you may not be able to use your battery as backup power when you need it most.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">Here\u2019s\u00a0the key point: if you already have a battery and your household is on a flexible tariff linked to wholesale pricing, you\u00a0don\u2019t\u00a0necessarily need a VPP to benefit financially. If you can charge when prices are low and use\/export when prices are high, a wholesale-linked retail contract can deliver strong returns - and\u00a0you\u2019re\u00a0still helping the grid.<\/span>\r\n<span data-ccp-props=\"{}\">\u00a0<\/span>\r\n<h4><b><span data-contrast=\"auto\">How do I join a Virtual Power Plant?<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h4>\r\n<span data-contrast=\"auto\">Joining a VPP means giving some control of your solar and\/or battery to a third party - often an energy retailer, sometimes an independent \u2018aggregator\u2019.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">If\u00a0you\u2019re\u00a0keen, start by contacting your preferred VPP provider.\u00a0They\u2019ll\u00a0check your eligibility and provide a contract outlining incentives and conditions.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">It\u2019s\u00a0worth comparing more than one provider before you sign - terms can vary a lot.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">Also worth knowing: a VPP\u00a0isn\u2019t\u00a0the only\u00a0way,\u00a0or even the best\u00a0way,\u00a0to maximise returns from solar and batteries. Many households are now looking for options that keep control with the customer.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-ccp-props=\"{}\">\u00a0<\/span>\r\n<h4><b><span data-contrast=\"auto\">Do I need to join a Virtual Power Plant for the\u00a0<\/span><\/b><b><i><span data-contrast=\"auto\">Cheaper Home Batteries Program<\/span><\/i><\/b><b><span data-contrast=\"auto\">?<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h4>\r\n<a href=\"https:\/\/flowpower.com.au\/residential\/tips-and-insights\/cheaper-home-batteries-program\/\"><span data-contrast=\"none\">Labor\u2019s\u00a0<\/span><i><span data-contrast=\"none\">Cheaper Home Batteries Program<\/span><\/i><\/a><i><span data-contrast=\"auto\">\u00a0<\/span><\/i><span data-contrast=\"auto\">announced in April\u00a02025\u00a0that eligible battery systems must be \u2018VPP ready\u2019.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">It\u2019s\u00a0since been clarified\u00a0that\u00a0your battery needs to\u00a0be capable of\u00a0connecting to\u00a0a VPP,\u00a0but\u00a0you\u00a0don\u2019t\u00a0have to join one if\u00a0you\u2019d\u00a0rather\u00a0opt out.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">Keep in mind,\u00a0to meet eligibility criteria,\u00a0the battery\u00a0unit itself\u00a0requires VPP capability.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-ccp-props=\"{}\">\u00a0<\/span>\r\n<h4><b><span data-contrast=\"auto\">Why join\u00a0a Virtual Power Plant: the benefits<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h4>\r\n<span data-contrast=\"auto\">There can be benefits, especially if\u00a0you\u2019re\u00a0trying to recover the upfront cost of solar and battery installation sooner.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">Some VPPs offer an upfront battery discount if you join, which can make a battery more affordable for households who might otherwise miss out.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">But watch the trade\u2011offs. Some operators may win back the discount by locking you into higher electricity rates later. Always read the terms and compare.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">Depending on the provider, you may also earn rewards for exporting to the grid at certain times, but the value you\u00a0actually receive\u00a0depends heavily on how the VPP operator uses your asset.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">And importantly: many of these benefits are not exclusive to VPPs. Today, there are other ways to maximise returns without handing over control.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-ccp-props=\"{}\">\u00a0<\/span>\r\n<h4><b><span data-contrast=\"auto\">What are the disadvantages of Virtual Power Plants?<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h4>\r\n<span data-contrast=\"auto\">Even if a VPP offers incentives, you may be able to find a better overall deal on a tariff that rewards smart usage and well\u2011timed exports, while keeping you in full control.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">Other downsides to consider:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n<ul>\r\n \t<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Some customers have reported batteries being drained during peak periods, then having to buy back energy from the grid at higher prices. Retailers have denied these claims, but\u00a0it\u2019s\u00a0not always transparent how much energy must be reserved for your own use.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n \t<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">The fine print varies widely, and your actual returns can look\u00a0very different\u00a0from one operator to another.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n \t<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Frequent or poorly managed charging\/discharging can also reduce battery life. If a VPP pushes the battery to\u00a0very low\u00a0levels or increases cycling beyond recommended limits, it\u00a0could increase battery degradation.<\/span>\r\n<span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<span data-contrast=\"auto\">If your goal is to take back control of your electricity\u00a0bills, a VPP may not always\u00a0be the right fit. For energy\u2011savvy households,\u00a0it\u2019s\u00a0worth exploring other options too.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-ccp-props=\"{}\">\u00a0<\/span>\r\n<h4><b><span data-contrast=\"auto\">Does Flow Power\u00a0operate\u00a0a Virtual Power Plant?<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h4>\r\n<span data-contrast=\"auto\">In some ways, \u2018VPP\u2019 is just new\u00a0terminology\u00a0for a\u00a0tried and tested\u00a0energy strategy: responding to real-time\u00a0price\u00a0signals and using\u00a0or exporting\u00a0energy\u00a0as the market needs.\u00a0It\u2019s\u00a0a strategy\u00a0we\u2019ve\u00a0helped customers use for decades.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">That\u2019s\u00a0why\u00a0Flow Power\u00a0doesn\u2019t\u00a0operate\u00a0a Virtual Power Plant. Instead, we put you in control. We reward smarter usage\u00a0linked\u00a0wholesale\u00a0electricity market prices,\u00a0plus boosted feed-in tariffs that encourage you to export to the grid when it is needed most.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">And\u00a0it\u2019s\u00a0not just households\u00a0that can benefit.\u00a0Like Flow Home, we help businesses dial down or shift large operations into lower demand periods. Our commercial and industrial customers\u00a0represent\u00a0a big slice of the market, with\u00a0<\/span><a href=\"https:\/\/flowpower.com.au\/2024-at-flow-power\/\"><span data-contrast=\"none\">capacity equivalent to a medium-sized gas peaking plant!<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">When loads that large shift at the right time, it has a similar stabilising effect\u00a0on the grid\u00a0to a\u00a0VPP but\u00a0doesn\u2019t\u00a0take\u00a0control away from the customer.\u00a0And importantly,\u00a0it can\u00a0offer even more potential to save.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">So,\u00a0whether\u00a0you\u2019re\u00a0a household or a business, a Flow Power contract can help you support the grid, use more renewable energy when it is abundant, and keep full control of your own battery.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-ccp-props=\"{}\">\u00a0<\/span>\r\n<h4><b><span data-contrast=\"auto\">Is it worth joining a Virtual Power Plant?<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h4>\r\n<span data-contrast=\"auto\">Joining a Virtual Power Plant\u00a0could be worthwhile, but\u00a0don\u2019t\u00a0forget to check the fine print, and compare offers to alternatives like being with a retailer\u00a0that passes on the benefit of wholesale pricing.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n<span data-contrast=\"auto\">If you want the opportunity to save, while keeping the power in your hands?\u00a0It\u2019s\u00a0time to make the switch to a smarter electricity contract.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n&nbsp;\r\n\r\n<span data-contrast=\"auto\">Sign up to Flow Home today.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span>\r\n\r\n&nbsp;\r\n\r\n[button text='Switch now' link='https:\/\/signup.flowpower.com.au\/' type='new']"}],"background_colour":""},{"acf_fc_layout":"spacer","large":false,"background_colour":""}],"summary":"Discover how Virtual Power Plants (VPPs) work, their benefits and drawbacks, and whether joining a VPP is right for your home or business. 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