ARENA funds three community battery projects
The Australian Renewable Energy Agency has installed its 100th community battery and allocated AU$23.2 million for three new projects under its funding
The Australian Renewable Energy Agency (ARENA) has installed the 100th community battery storage system under its Community Batteries Funding Initiative. The agency also announced AU$23.2 million in new funding for three additional projects.
ARENA acting CEO Chris Faris said the milestone reflects growing confidence in the technology's role. "Community batteries help local communities make better use of rooftop solar by storing excess energy during the day and making it available when it is needed most," Faris stated. He added that the programme is generating data on performance and grid impacts to accelerate broader commercial deployment.
Three New Projects Receive Funding
The three newly funded projects under Round 2 of the initiative represent different ownership and deployment models.
| Project | Funding | Details |
|---|---|---|
| YES Group Regional Community Batteries Project | AU$10.29 million | To deploy 14 community battery storage systems across regional South Australia and New South Wales. |
| Ausgrid scale-up | AU$8 million | A network-led project for 21 community batteries across Sydney, the Central Coast and Hunter regions. |
| City of Newcastle project | AU$5 million | Integrating community batteries with embedded solar networks across regional Queensland. |
ARENA's initiative is part of the federal government's AU$200 million Community Batteries for Household Solar measure, with AU$171 million allocated to the agency.
National Fleet Approaches 250 Systems
ARENA's 100-battery milestone is only a portion of the national total. The Australian Energy Regulator (AER) confirmed in early 2026 that 244 community battery storage systems were connected to Australia's distribution networks. Distribution network service providers owned 189 of those installations across 14 networks.
Deployment has been concentrated in the eastern states. Queensland led through Energex's 53 installations and Ergon Energy's 13 units. New South Wales followed with Endeavour Energy operating 54 systems and Ausgrid maintaining 22. The AER attributed this concentration to higher renewable energy penetration and network congestion challenges.
Varied Regional Deployment Models
Deployment models have varied considerably by state. In the Australian Capital Territory, the territory government completed its first community battery network with a 450kWh system.
Western Australia has pursued a utility-led approach. Western Power began construction on 18 new community batteries across Perth and Bunbury in June 2026 under a AU$25 million programme. This more than doubled its existing fleet of 13 systems deployed across the South West Interconnected System.
In New South Wales, network operator Ausconnex began construction on the first of eight community batteries across Greater Western Sydney in August 2026. This is part of a privately funded programme worth more than AU$65 million. The eight sites at Penrith, South Marsden Park, Seven Hills, Emu Plains, Maldon, North Leppington, Cawdor and Cranebrook will together deliver around 40MW of power and 136MWh of storage.
These batteries typically store surplus rooftop solar generation during the day for discharge during the evening peak. They offer renters, apartment dwellers, and households without their own solar installation a way to access the benefits of distributed storage.
