Victoria Expands Community Battery Storage Program

Victoria’s 100 Neighbourhood Batteries Program has entered its third phase, with an additional $6.6 million in funding aimed at accelerating the rollout of distributed energy storage across the state.

Phase 3 at a Glance

Round 3 will deliver at least 10 more neighbourhood battery systems, increasing the total number of funded projects to more than 100 since the program began in 2023.

Grants of up to $400,000 per battery are available. Applicants can also submit bundled proposals for multiple battery installations, provided each project is located at a separate connection point. The program, administered by the Department of Energy, Environment and Climate Action (DEECA), focuses on deploying stationary chemical batteries ranging from 20 kW/40 kWh to 5 MW/20 MWh.

Projects must be completed by 31 August 2027 and can be funded under three distinct streams:

• Stream 1 – Network and Community Benefits: Batteries that support both grid and community needs.
• Stream 2 – Community-Only Benefits: Projects dedicated exclusively to local community energy requirements.
• Stream 3 – Energy Resilience: Installations designed to provide backup energy for publicly accessible buildings during grid outages.

Targeted Locations and Energy Equity

Round 3 prioritizes projects in nine Local Government Areas that have not previously secured funding, including Casey, Wyndham, and Moonee Valley. Additionally, it emphasizes energy equity, targeting installations in constrained network areas, regions with frequent outages, and communities where rooftop solar access is limited.

The initiative builds on the earlier $10.92 million Neighbourhood Battery Initiative, which has already supported 90 batteries across 85 towns. Together, these efforts contribute to Victoria’s broader strategy of integrating community battery storage to enhance local energy resilience and reduce emissions.

Funding Contributions and Key Assessment Criteria

Co-contributions play an important role in the evaluation process:

• 10% cash contribution is recommended for community-focused projects.
• 30% cash contribution is preferred for proposals with significant network benefits.

In-kind support cannot be counted toward these contributions.

To secure funding, applicants must demonstrate:

• Technical feasibility and detailed project planning.
• Financial value, including strong cost-effectiveness.
• Local benefits, such as community engagement and safety measures, including fire risk management and confirmed grid connection.
• For behind-the-meter projects, integration of solar PV and comprehensive consumption modelling are required.

Driving Victoria’s Energy Transition

By expanding neighbourhood battery storage, Victoria is supporting the development of a more resilient, flexible, and sustainable energy system. These distributed energy projects reduce grid strain, lower long-term energy costs, and empower communities to actively participate in the state’s clean energy transition.