How Can Community Batteries Lower the Cost of Electricity for All Members?

How Can Community Batteries Lower the Cost of Electricity for All Members?

Rising energy prices in Brisbane and beyond are putting pressure on households and businesses across Australia. With over 3.5 million homes already using rooftop solar energy, Australians are producing more renewable power than ever before. However, without efficient ways to store and share it, much of that clean energy is wasted.

Community batteries are emerging as a powerful solution. Acting as shared energy storage hubs, they allow households, whether they own solar panels or not, to benefit from cheaper, cleaner electricity. By storing excess distributed solar energy during the day and releasing it when demand is high, community batteries can lower costs, ease strain on the grid, and support the growth of renewable energy.

What Is a Community Battery?

A community battery is a centrally located storage system, positioned within the community and can be connected to an embedded network. It’s like a neighbourhood energy bank: households feed excess solar power into the battery during the day, and then draw from it later when they need it most. 

Why Do We Need Community Batteries?

Australia’s energy system is changing rapidly. Rooftop solar energy is now generating so much electricity during daylight hours that it can congest the grid, similar to a traffic jam when too many cars are on the road. This not only reduces efficiency but can make it harder to integrate even more renewable energy.

Community batteries solve this problem by storing excess distributed solar energy and feeding it back when demand spikes. Instead of wasting valuable renewable generation, the energy is captured, shared, and used to lower reliance on fossil fuels.

How Do Community Batteries Work?

Community batteries work for everyone, not just solar households:

• For solar panel owners: Excess electricity is stored in the shared battery instead of being exported to the embedded network or grid. Later, households can draw from that stored energy at times of peak demand.

• For non-solar households: Community batteries may offer discounted access to stored energy each day at times of peak demand.

This shared approach makes clean energy accessible and affordable to a wider group of people, while reducing pressure on the local network during peak energy prices.

The Benefits of Community Batteries

Community-scale batteries deliver a wide range of social, economic, and technical benefits:

1. Lower Electricity Costs

By charging during the day and discharging during peak periods, community batteries help smooth out demand and reduce exposure to volatile energy markets. This may translate into lower costs for households across the community.

2. Greater Energy Equity

Community batteries help bridge the gap between the “solar haves” and “solar have-nots.” Renters, apartment dwellers, and households unable to install panels can still enjoy cheaper electricity and participate in Australia’s clean energy transition.

3. Technical Advantages

Larger shared batteries are easier to manage and provide more reliable services than hundreds of individual home systems. They also improve grid stability by managing voltage fluctuations, supporting electric vehicle charging, and offering backup supply when needed.

4. Environmental Benefits

By maximising the use of renewable generation, community batteries reduce reliance on fossil fuels and help cut carbon emissions.

5. Economic Efficiency

Sharing one large-scale battery may be cheaper than installing many small household systems. Revenue opportunities also exist through participation in wholesale energy and frequency control markets, depending on ownership models.

The Role of Virtual Power Plants

When community batteries are linked together, they form part of a virtual power plant (VPP). This allows multiple batteries to operate like a single, large-scale energy asset. By selling stored electricity back to the grid during periods of peak demand, a VPP can generate revenue that helps offset costs for participating households.

Government Support and Investment

The Australian Government has recognised the importance of community batteries in achieving its renewable energy goals.

In the 2022 Federal Budget, $200 million was allocated to the Community Batteries for Household Solar programme, aiming to roll out 400 batteries nationwide. Of this, $171 million was directed to ARENA to deliver at least 342 batteries under the Community Batteries Funding Initiative.

By 2025, more than 300 community batteries have been approved across all states and the Northern Territory, with further funding rounds underway.

The Future of Community Batteries in Australia

With household solar energy adoption continuing to climb and energy prices remaining a concern, community batteries will play a growing role in Australia’s energy mix.

By enabling distributed solar energy, reducing grid congestion, and offering affordable storage, they represent a practical, scalable pathway to a more sustainable and equitable energy system.

Altogether is actively investing in innovation and partnering with government initiatives, such as those supported by ARENA, to make community-scale storage a reality. As these projects expand across Brisbane, Sydney, and regional centres, we’re committed to ensuring that everyday Australians can access affordable, renewable power, no matter where they live.

FAQs

Q1: Do I need rooftop solar to benefit from a community battery?

No. Community batteries are designed to provide savings and benefits to all households, whether you have solar panels or not.

Q2: How do community batteries reduce energy costs?

They store excess distributed solar energy during the day and release it during the evening at times of peak demand, where customers may benefit from discounted rates.

Q4: Can community batteries connect to a virtual power plant?

Yes. Many community batteries are designed to integrate with a virtual power plant, improving grid stability and creating extra value for communities.

Q5: How are community batteries funded?

Government initiatives like ARENA’s Community Batteries Funding Rounds are helping roll out hundreds of batteries across Australia.

Conclusion

Community batteries are more than just shared energy storage; they’re a cornerstone of Australia’s renewable future. By lowering costs, reducing grid strain, and making renewable energy benefits available to everyone, they provide a fairer, smarter path forward.

As the rollout expands, community batteries will become a key tool in managing rising energy prices, while supporting Australia’s transition to a clean energy economy.  Contact Altogether today to enquire about community batteries in your area.