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Are off-grid batteries eligible for the rebate, and must they be VPP capable?

Short answer

Yes, off-grid batteries can be eligible. At the time of writing the Clean Energy Regulator requires VPP capability for off-grid systems within 1 km of the grid, or written evidence that connecting would cost more than $30,000. Caravans and tiny homes are a grey area that needs checking.

Written and checked by the Energy Merchants desk · Reviewed 3 October 2026 · For homeowners

The program’s VPP condition makes sense for grid-connected homes, since a virtual power plant needs a grid. For off-grid homes, the rules acknowledge that, but they do not give a blanket exemption.

Off-grid battery rebate eligibility

An off-grid battery still needs to be new, CEC listed, between 5 and 100 kWh usable and installed by an accredited installer to AS/NZS 5139. The STCs are calculated the same way, using the factor and tiers in battery size limits. What changes is the VPP test.

Do off-grid batteries need to be VPP capable

At the time of writing, the regulator’s rule has two parts:

  1. If the premises is within 1 km of the grid, the battery should be technically capable of participating in a VPP.
  2. Otherwise, you need written evidence that the cost of connecting to the main grid would be more than $30,000.

So a remote property qualifies without VPP capability by documenting the connection cost, usually a quote from the local network. A property that is 600 m from a power line without that evidence needs a VPP-capable battery. Read the CER battery page before quoting, because the test and thresholds are the kind of detail that gets revised.

Battery rebate for caravan or tiny home off-grid

The scheme is for batteries permanently installed at a premises, and the battery must stay installed until after 2030 or the end of the warranty. That is a poor fit for a caravan, a van or a movable tiny home on wheels. A tiny home on a foundation, with a fixed address, a compliant installation and a stand-alone power system designed by an accredited installer, looks much more like a premises. Ask the regulator in writing before you price STCs into the quote.

Because remote customers often buy a system before checking the claim rules, a short conversation at the quote stage about the 1 km test and the connection evidence saves the most pain. Ask the network for a connection estimate in writing early; replies can take weeks.

From the desk: keep the network's connection quote as a PDF in the job file, with the property address and date. It is the document that carries the off-grid claim.

What this means for installers

Off-grid work needs the right accreditation, covered in stand-alone power system battery STCs. Get the connection evidence before commissioning, and photograph the whole system, the label and the serial. The battery submission guide shows what a claim needs.

What this means for homeowners

Ask for a quote that shows the STC discount as a line item and states the off-grid test your property meets. If you are on a farm or a remote block, read business and community batteries as well. The discount can be modelled in the battery STC calculator.

The overview is at battery STCs. Installers can see rates on pricing or start trading.

Follow-up questions

People also ask

Do off-grid batteries need to be VPP capable?
Not if the property is further than 1 km from the grid and you hold written evidence that connecting would cost more than $30,000. Within 1 km, VPP capability applies.
Can a caravan or tiny home claim the battery rebate?
Only if it is a permanently installed system at a premises that meets the program rules. A mobile or portable setup generally is not.

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