ARENA launches Round 2 of community battery grants

The Australian Renewable Energy Agency (ARENA) has announced $46.3 million in funding for Round 2 of its Community Batteries Funding Program.

Community batteries provide a way to store excess solar energy for later use, enabling higher penetrations of rooftop solar, reducing household costs and easing pressure on local electricity grids.

Following a successful first round, the program is looking to fund projects that improve the economics of community battery projects, build industry capacity, support the integration of distributed energy resources into Australian energy markets, or otherwise demonstrate the benefits of community batteries.

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.

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,” he explained. “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.

“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.”

In its 2022–23 federal Budget, the Australian Government allocated $200 million for the Household Solar budget measure to deploy 400 community batteries across Australia.

ARENA was allocated $171 million of this funding to deliver at least 342 community batteries across Rounds 1 and 2.

Funding applications for Round 2 can be submitted from 17 March 2025 to 30 April 2025. For more information about the program and application process, visit ARENA’s funding page.

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