VPP capable

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

VPP capable means the battery and its inverter have the technical ability to be controlled remotely by a virtual power plant (VPP) operator. The hardware speaks the right protocol, so a provider could instruct the battery to charge, hold or discharge.

The federal Cheaper Home Batteries Program, from 1 July 2025, requires a VPP-capable battery. That is a product test, checked as part of the approval of the model. The customer is not required to sign up to a VPP in order to receive STCs, at the time of writing, though some state programs and incentives do ask for it, and the Western Australian battery scheme is reported to require it. For what a VPP is, see VPP definition.

In practice

Check the capability on the approved product listing, not the brochure. See the CEC approved battery list. Then ask the customer whether they want to join one. Capable and enrolled are separate choices, and providers set their own eligibility rules and rewards.

For the NSW PDRS connection incentive, the battery must be connected to an approved VPP. Read PDRS definition before you promise anything.

Many VPP-capable batteries need an internet connection and a registered account. A battery that is installed offline can fail a provider’s onboarding even if it passes the claim.

Common confusion

People hear “VPP” and assume the customer loses control of the battery. Capability is not consent. A customer who is not enrolled keeps full control, and a customer who is enrolled normally keeps a backup reserve set by the agreement.

Another mix-up is between VPP and demand response. A VPP is an aggregator of devices. Demand response is the action of shifting load or output when asked.

Claim steps are in battery STCs and the Cheaper Home Batteries Program installer guide. More terms are in the glossary.