Australia's Leap Towards Community Energy Storage: The Rise of Community Batteries

In a remarkable development for Australia's renewable energy sector, the Australian Renewable Energy Agency (ARENA) has witnessed a surge in interest in community battery projects. This enthusiasm was evident in the first round of the Community Batteries Funding Program, which saw an extraordinary level of participation from across the nation.

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A Groundswell of Support

Launched in April, the program aimed to address key issues such as reducing energy bills, cutting emissions, and alleviating stress on the electricity grid. The response was staggering, with over $3.5 billion in battery deployment projects vying for funding. This overwhelming interest underscores the growing recognition of the vital role community batteries can play in Australia's energy landscape.

Funding and Applications: A Snapshot

The initial phase of the program concluded with ARENA receiving 140 eligible applications from all states and territories, seeking a total of $1.3 billion in grants. This demand significantly exceeded the available $120 million in funding, highlighting the immense potential and eagerness for community-based energy solutions. Of these, 31 applications were shortlisted, spanning every state and territory, with a combined grant request of $231 million and a total project value of $530 million.

The Role of Community Batteries

Community batteries are set to revolutionise how energy is stored and used at the local level. These batteries, ranging from 50kW to 5MW in size, are designed to store excess solar energy, which can be utilised later. This not only helps in reducing household electricity costs but also eases the load on local electricity grids.

The Path Ahead

ARENA CEO Darren Miller expressed optimism about the role of community batteries in providing affordable and clean energy storage solutions. The initial projects are expected to offer valuable insights that could accelerate the adoption of local energy storage solutions across Australia.

In line with the 2022-23 Federal Budget, the Australian Government has allocated $200 million for deploying 400 community batteries nationwide. ARENA is responsible for delivering at least 342 of these batteries, with the remaining to be handled by the Department of Climate Change, Energy, the Environment, and Water (DCCEEW).


The enthusiastic response to the Community Batteries Funding Program is a testament to Australia's commitment to embracing renewable energy solutions. As the country moves forward with these initiatives, the focus on community batteries is poised to play a pivotal role in shaping a more sustainable and efficient energy future.

Article information source: Strong demand for community batteries across Australia

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