Attention ECEC: Round 2 of ARENA’s community batteries program launched

The Australian Renewable Energy Agency (ARENA) has announced $46.3 million in funding for Round 2 of the Community Batteries Funding Program, a program that aims to deploy community batteries across Australia to lower energy bills, cut emissions and reduce pressure on the electricity grid.

Community batteries provide energy storage in the distribution network that can store excess solar energy for later use, enabling higher penetrations of rooftop solar, putting downward pressure on household costs and easing pressure on local electricity grids.

Chemical batteries between 50 kW to 5000 kW in size are eligible. Grants of between $5m to $20m are available for projects with ten batteries, with funding to not exceed 50 per cent of the battery project cost.

Projects should improve the economics of community battery projects, build industry capacity, support the integration of distributed energy resources into Australian energy markets, or demonstrate benefits of community batteries.

During a webinar about the community batteries program ARENA CEO Darren Miller said batteries are a critical part of the transition to net zero as the grid transitions to energy generated from renewable sources.

“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,” he said.

“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”.

To be eligible for ARENA funding, each community battery must be between 50 kW and 5 MW in size and connected to the distribution network.

For early childhood education and care (ECEC) services, the installation of a community battery can demonstrate a commitment to sustainability at a local level, and can be seen as an exercise in goodwill, as well as giving back to the community.

To be eligible for funding, at the time of applying, an applying organisation must hold an Australian Business Number (ABN) and tick at least one of the following criteria:

• Be (or warrant that you will be at the time of entering into a funding agreement) an Australian entity incorporated under the Corporations Act 2001;
• Be a Commonwealth entity prescribed as a government business enterprise by section 5(1) of the Public Governance, Performance and Accountability Rule 2014;
• Be a Commonwealth entity prescribed as a government business enterprise by section 5(1) of the Public Governance, Performance and Accountability Rule 2014;
• Be an Australian State or Territory owned corporation or a subsidiary of an Australian State or Territory owned corporation or
• Be an Australian local government or council or an Australian organisation that is purposed with representing and supporting local governments or councils.

Interested applicants will need to create an account with the ARENANet Portal, with all proposals to include a project plan, budget, financial model, project funding sources. a uses table and a conflict of interest declaration.

More information about this program, including the application process, can be found at ARENA’s funding page. Funding applications can be submitted from 17 March 2025 to 30 April 2025.