A new round of funding for the Neighbourhood Batteries Program is helping to make energy more affordable and reliable for local communities. The program, which has already funded 25 projects across the state, is expanding to include energy back-up systems that will increase energy resilience, particularly in areas prone to extreme weather events.
Neighborhood batteries are larger than household batteries but smaller than grid-scale systems, designed to store surplus renewable energy when it’s abundant and dispatch it when it’s needed most. These systems not only help reduce energy costs by storing cheap, clean energy but also provide communities with a backup power source during emergencies like storms, allowing people to cook, charge devices, and stay connected.
The second round of the Neighbourhood Batteries Program includes increased funding of up to $400,000 per project, making it easier for councils, community groups, businesses, and other organizations to implement local energy solutions. The program prioritizes projects that support vulnerable and low-income households, as well as those in outer suburbs and regional areas, helping to reduce energy bills for those who need it most.
In addition to enhancing energy affordability, the program also focuses on improving energy resilience. The new "energy resilience" category is designed to help communities maintain access to critical power during outages caused by severe weather events. Projects may include community hubs with energy back-up systems, where residents can access hot water, charge devices, and stay informed during blackouts.
With the flexibility to install batteries ranging in size from 20 kW/40 kWh to 5 MW/20 MWh, the program allows for a wide range of applications, from small-scale neighborhood batteries to larger, community-based systems. A new Project Readiness Assessment Tool is available to help applicants determine the best fit for their community.
Applications are now open for the second round of funding. Guidelines are available at energy.vic.gov.au/grants/neighbourhood-batteries.