Lower bills, less grid strain: ARENA opens applications for Community Battery Projects
ARENA has opened applications for $46.3 million in funding to support community battery projects that lower energy costs, reduce emissions, and improve grid stability, with applications open until 30 April 2025.
The latest round of Community Battery funding is part of the Australian Government’s $200 million commitment to deploying 400 community batteries across the country. ARENA has been allocated $171 million to deliver at least 342 of these batteries through multiple funding rounds.
In Round 1, $124.7 million was awarded to support the installation of 318 community batteries in all states and the Northern Territory. The remaining funds are now being allocated through Round 2.
Community batteries help ease pressure on the grid by allowing more households to install rooftop solar without causing network instability. By storing surplus solar energy and redistributing it when needed, these batteries can help stabilise electricity supply while reducing costs for consumers.
"Part of increasing our dependency on renewably sourced energy is the need to increase our firming technology to make sure the energy grid is secure and reliable. We can achieve this by storing energy in batteries when renewable energy is plentiful and use this stored energy later in the day and overnight when people most need it,” ARENA CEO Darren Miller said, explaining the importance of battery storage in supporting Australia’s transition to renewable energy.
“Over recent years, a concerted effort has been made in deploying batteries to support the grid and transition to clean energy. Round 2 will build on the insights, expertise and knowledge developed in Round 1, resulting in further optimisation of distributed energy resources in the electricity grid”.
How Round 2 Works
Projects applying for Round 2 funding must install community batteries with a capacity between 50 kW and 5 MW and ensure they are connected to the distribution network. ARENA is seeking proposals that:
- Improve the economic viability of community battery projects
- Build industry knowledge and expertise in battery deployment
- Support the integration of distributed energy resources into Australia’s electricity markets
- Demonstrate the benefits of community battery storage
Application Process and Webinar
Funding applications for Round 2 open on 17 March 2025 and close on 30 April 2025. ARENA will host a webinar on 17 March 2025 to provide information on the application process and answer questions from potential applicants. Register for the webinar here.
