With the upcoming launch of the Federal Government’s $2.3 billion Cheaper Home Batteries Program in July 2025, Karit is urging policymakers to mandate active participation in Virtual Power Plants (VPPs) as part of the scheme. Karit, a leader in innovative energy solutions, believes that mandating VPP integration will amplify the program’s economic, environmental, and grid-stabilising benefits for Australian households, businesses, and community facilities.

The Cheaper Home Batteries Program, which aims to make energy storage more affordable by subsidising battery systems, is a landmark initiative expected to cut battery costs by 30% and set up over 1 million new installations by 2030. However, Brett Milne, Executive Director and Co-Founder of Karit, says the program’s current requirement for batteries to be merely VPP-enabled, without mandatory participation, limits its full potential.

“Mandating VPP participation is a critical step toward a smarter, more sustainable energy future,” said Milne. “By connecting distributed battery systems to a Virtual Power Plant, we can enhance grid stability, lower wholesale energy costs, and increase returns for businesses and households. This isn’t just a technology solution; it’s an opportunity to build an energy-sharing ecosystem that benefits everyone.”

Why Virtual Power Plants are essential

A VPP is a network of decentralised and distributed energy resources (DER) managed by a central control platform. This network includes resources like solar PV, wind turbines, battery storage, EV chargers, and electric vehicles. The central control platform orchestrates these DERs across various locations, allowing them to function collectively as a traditional centralised power plant. The aggregated power stored in these systems operates like a large-scale energy storage unit, providing invaluable support during peak demand or unexpected disruptions.

It’s important to note that there are very different types of VPP technology available. On the simpler end, you’ll find systems that use APIs or IoT to control inverters and batteries for managing peak energy use. Then you have more advanced platforms, like Karit, that leverage machine learning-powered software. These sophisticated VPPs can forecast energy needs and dynamically manage and optimise the connected assets and devices with much greater efficiency.

The benefits of active VPP participation include:

  • New revenue streams: Businesses and households can earn additional income by selling surplus energy back to the grid. This not only offsets energy storage costs but improves overall financial viability.
  • Resilient energy systems: VPP-connected batteries improve the grid’s capacity to handle surges in demand or extreme weather events, reducing the likelihood of blackouts and energy instability.
  • Sustainability leadership: By supporting clean energy sharing, VPPs help curb Australia’s carbon emissions and accelerate the transition away from fossil-fuel dependency.

Karit’s vision for a collaborative energy landscape

Karit is advocating for the Cheaper Home Batteries Program to require all VPP-enabled batteries to be actively connected to VPPs. This adjustment would maximise the program’s impact and create a collaborative network where households, businesses, and grid operators work together to optimise energy resources.

“The Cheaper Home Batteries Program is already a monumental step forward, but we have a chance to make it truly game-changing,” said Milne. “Through active VPP participation, we can more effectively balance supply and demand, stabilise the grid, and deliver equitable energy savings across the community.”

Milne emphasised that enabling Australians to voluntarily participate in VPPs, while a step in the right direction, fails to fully harness the distributed storage capacity of millions of batteries working in unison.

Karit is calling on energy policymakers to implement mandates for VPP participation within the Cheaper Home Batteries Program. This change would not only deliver increased cost savings and grid benefits but also accelerate the transition to a cleaner, more collaborative energy future in Australia.

ENDS

Media enquiries:

Georgie O’Connor – georgie [at] karit.com.au