The Australian Renewable Energy Agency (ARENA) has unveiled a $46.3 million funding package for the second round of its Community Batteries Funding Program.

This initiative, building on the success of its predecessor, aims to revolutionise energy storage and distribution across Australia.

The program’s primary objectives are to reduce energy bills, cut emissions, and alleviate pressure on the national electricity grid.

ARENA is now accepting applications for projects that will deploy community batteries, with a focus on improving the economics of such projects, building industry capacity, and supporting the integration of distributed energy resources into Australian energy markets.

To qualify for funding, community batteries must have a capacity between 50 kW and 5 MW and be connected to the distribution network.

These batteries will play a crucial role in storing excess solar energy for later use, enabling higher penetrations of rooftop solar, and ultimately reducing household energy costs.

ARENA CEO Darren Miller emphasised the importance of batteries in the transition to net-zero emissions.

“As we increase our dependency on renewable energy, we need to enhance our firming technology to ensure a secure and reliable energy grid,” Miller stated.

He explained that storing energy in batteries during periods of abundant renewable generation allows for its use during peak demand times, typically in the evening and overnight.

The Community Batteries Funding Program is part of a larger initiative announced in the 2022-23 Federal Budget.

The Australian government allocated $200 million to deploy 400 community batteries nationwide, with ARENA receiving $171 million to deliver at least 342 batteries across two funding rounds.

This second round builds upon the knowledge and expertise gained from the first round, which saw the approval of $124.7 million in grants to support the deployment of 318 batteries across all states and the Northern Territory.

Interested parties can submit funding applications from March 17, 2025, to April 30, 2025.

ARENA expects grant funding requests to range from $5 million to $20 million, with the stipulation that funding should not exceed 50 per cent of the battery capital expenditure.

As Australia continues its push towards a cleaner energy future, initiatives like the Community Batteries Funding Program play a vital role in optimising distributed energy resources and supporting the nation’s transition to a more sustainable and reliable electricity grid.