NSW Virtual Power Plant Incentive

NSW households and small businesses may also be eligible for an incentive for connecting an eligible battery to a Virtual Power Plant.

A VPP connects groups of distributed batteries so stored energy can be made available to support the electricity grid. The terms, payments and battery access conditions differ between VPP providers.

As of 1 July 2026, the NSW Government states that eligible batteries can be more than 2 kWh and up to 50 kWh in size. The incentive amount depends on the usable battery capacity made available to the grid, with the incentive calculation capped at 28 kWh.

Can the NSW VPP incentive be combined with the federal battery discount?

Yes.

The NSW Government states that an eligible customer using the Australian Government's Cheaper Home Batteries Program can also access the NSW VPP incentive, subject to meeting the relevant requirements.

However, do not join a VPP based only on the upfront incentive.

Before signing, compare:

  • the upfront incentive;
  • electricity export payments;
  • when the provider can access your battery;
  • how much battery capacity can be accessed;
  • electricity retailer compatibility; and
  • other contract conditions.

The NSW Government recommends comparing VPP provider offers because conditions and payments can differ.

7th Jul 2026 Karan Chopra

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