The Australian Renewable Energy Agency (ARENA) has announced conditional approval of up to $143 million to support the deployment of up to 370 community batteries across Australia.
This initiative, part of ARENA’s Community Battery Funding Round 1, is set to benefit all states and the Northern Territory, potentially unlocking $359 million in renewable energy infrastructure investment.
The community batteries are expected to have a significant impact on local network constraints, expand rooftop solar capacity, reduce emissions, and lower electricity costs for a wide range of consumers.
Beneficiaries will include households, hospitals, schools, council facilities, housing developments, sports facilities, libraries, and regional communities.
ARENA CEO Darren Miller emphasised the program’s transformative potential, stating: “We are encouraged to see this important asset class being demonstrated at such a scale and expect that this funding round will kick start the neighbourhood-scale storage sector.”
The initiative stems from the October 2022 Federal Budget, which allocated $200 million for the Community Batteries for Household Solar Budget Measure.
Of this, $171 million was assigned to ARENA to deliver at least 342 batteries.
ARENA received an overwhelming response to Round 1, with 140 eligible Expressions of Interest.
Funding has been conditionally allocated to 21 applications from 20 applicants, split between Distribution Network Service Providers (DNSPs) and Non-DNSPs.
The batteries will have a combined storage capacity of up to 281 MWh, enabling the storage and use of renewable electricity across Australian communities.
ARENA will contribute up to $0.51/Wh in grant funding against an average cost of $1.28/Wh.
While specific battery locations are yet to be finalised, subject to community consultation and approvals, the initiative includes a diverse range of recipients across both DNSPs and Non-DNSPs, covering multiple states and territories.
ARENA plans to launch a second round of community battery funding in late 2024, with an allocation of at least $28 million, further supporting the growth of neighbourhood-scale energy storage in Australia.
