Victoria is undergoing an energy transformation, with a net-zero emissions target by 2045. The Victorian Government’s support for neighbourhood-scale batteries is one way it supports clean, reliable and affordable electricity for Victorians.

What are neighbourhood batteries?

Neighbourhood batteries (or community batteries) are an energy storage model with the potential to provide many benefits to consumers, communities and the electricity system. They can be owned by electricity distribution businesses or third parties such as community energy groups, electricity retailers, aggregators or private investors.

They are larger than household solar batteries. Typical household solar batteries have a storage capacity of about 10 kilowatts (kWh), while neighbourhood-scale batteries range from 50 kWh to 10 megawatts (MWh).

Neighbourhood batteries enable the network to support more rooftop solar by storing solar-generated electricity during the day and discharging it during the evenings when demand is highest. This enables consumers to generate and consume more renewable energy locally and supports Victoria’s greenhouse gas emissions and renewable energy targets.

Page last updated: 28/08/23