A neighbourhood battery is a mid-scale energy storage unit embedded in the network with a typical 100 kilowatts to 5-megawatt capacity. They are generally installed in public spaces or in or around buildings close to where electricity is being consumed.

They can deliver many benefits, such as increasing the amount of locally stored solar energy, increasing access to renewable energy and reducing pressure on the electricity grid. They can also help people who have previously been unable to access renewable energy, such as renters, apartment dwellers and small businesses.

Rooftop solar charges the batteries during the day, topped up by energy from the grid as required, allowing renewable energy to be stored and released back into the electricity grid when it is most needed.

Communities, retailers, third parties or the unregulated arms of distribution network service providers can own neighbourhood batteries. They can operate for profit or not-for-profit but must include an element of community benefit and engagement.

Neighbourhood battery technology is new and there are several different ways they can operate. Each neighbourhood battery project can identify new opportunities for how they can best be delivered for the local community and network.

An example of how a neighbourhood battery can work is:

• The battery is installed and connected to a ‘low-voltage network’ that provides electricity to (usually) between 100-300 properties. The battery has a meter that records how much energy it imports and exports, similar to the way homes and businesses are connected to the electricity grid.
• The battery is charged by excess rooftop solar captured during the day. A neighbourhood with lots of rooftop solar systems and low day-time energy use allow surplus energy to be stored and utilised in the evenings when energy use is at its highest (usually between 5 and 9pm).
• In this example, the battery is not connected to any other properties and there is no subscription or service fees charged or credited to local households or businesses. Surplus energy is sold to an energy retailer, typically in the evening when the price of energy is high, allowing the battery to generate income.
• The income generated from selling surplus energy helps cover the operating expenses of the neighbourhood battery. There are trials current underway on whether neighbourhood batteries can become commercially viable.
• A neighbourhood battery could also provide affordable and ‘climate-friendly’ electric vehicle charging.

This is just one example. Neighbourhood batteries could also be connected to an electricity retail plan that local homes and businesses could sign up to

Rapid uptake in solar is causing ‘congestion’ in the electricity network. This means more energy is being exported than the grid can manage. Unfortunately, if this renewable energy can’t be used, exported to the grid, or stored, it is wasted. Batteries can address this problem by absorbing and storing excess energy from rooftop solar and releasing it during peak times when it is needed most.

Since household batteries are still prohibitively expensive for many people, neighbourhood batteries can be a more cost-effective, shared alternative. They can also provide a wider range of benefits, such as:

• Supporting people who can’t install rooftop solar, such as apartment residents or renters to access renewable energy.
• helping to overcome the typical limitations of solar energy such as solar energy not being available in the evening by storing it for evening use.
• Defer or avoid costly network upgrades by increasing local energy storage capacities.
• Improve efficiency and reliability in outage prone areas.
• Put downward pressure on energy prices.
• Enabling electric vehicle charging stations for local residents, especially those who cannot install one at their home.

Neighbourhood batteries come in a range of sizes depending on their storage capacity and available space. They range in power capacity from about 100 kilowatts (kW) to five megawatts (MW). Typically, a 200kW battery would be the size of a bus shelter or four fridges.

The current scope of the ‘Fast-tracking neighbourhood batteries’ project does not include installing neighbourhood batteries. This project aims to identify locations that are technically viable for neighbourhood batteries and that have the support of the community. Potential locations could include public spaces or in or around buildings. This project will explore locations across the three municipalities, including Council buildings and Council-owned land. We also want to hear the community’s views on where neighbourhood batteries could be located. Alongside this project, the City of Melbourne is delivering the Power Melbourne project which is aiming to deliver a network of coordinated mid-scale batteries across the city. While the City of Yarra has worked with the Yarra Energy Foundation (YEF) to install Australia’s first inner-urban neighbourhood battery and is working with YEF to install a second neighbourhood battery in Richmond. You can learn more about these on YEFs website.

This ‘Fast-tracking Neighbourhood Batteries’ project tackles the challenge of lack of access to renewable energy. While solar power may be abundant, many communities, families and organisations at a local level are unable to collect, store or share it, effectively locking them out of accessing this resource. This project will identify the local potential and feasibility of neighbourhood batteries in the inner metropolitan Melbourne area. It will proactively engage and empower local communities to participate in neighbourhood battery projects. The project is being delivered by the Inner Metropolitan Partnership, a partnership between the Cities of Yarra, Melbourne, and Port Phillip.

The Inner Metropolitan Partnership is an advisory group established by the Victorian Government, and includes the local government areas of the City of Yarra, City of Melbourne and City of Port Phillip. The Partnership is a way for local communities to engage directly with state and local governments and advise the Victorian Government of the top priorities across the region. This advice ensures a community voice in government decision making.

The Inner Metropolitan Region is the traditional home of the Wurundjeri and Bunurong people of the Kulin nation.

The Inner Metropolitan Partnership’s vision for the region is to harness the opportunities growth provides in a way that supports a strong economy, a sustainable future and greater social inclusion.

In mid-2022, the Cities of Melbourne, Yarra, and Port Phillip received Victorian Government funding through the Metropolitan Partnerships Development Fund Program (MPDF). The funding provides for the councils to undertake community engagement, an assessment of the electrical network, and design work to fast-track the roll out of neighbourhood batteries across these three municipalities. Funding for the installation of batteries will be sought once feasible locations are determined.

Neighbourhood batteries range in power capacity from about 100 kilowatts (kWh) to five megawatts (MW). As an example, the Fitzroy North community battery has a storage capacity of 309 kWh and supplies power to approximately 200 homes during evening peak demand.

Depending on the model and size, the sound of the battery could range from about 50-70 decibels at one meter from the unit. 70 decibels is as loud as a washing machine or a dishwasher. Batteries only make noise when they are charging or discharging.

Battery technologies are well-proven and have an excellent safety record. All batteries installed will comply with strict electrical safety regulations.

Neighbourhood batteries increase network reliability because they store excess energy that can be used when demand is high, reducing the pressure on the main network. They can also provide back-up power during a grid outage.

The impact of climate change means we need to work fast to reduce greenhouse gas emissions and achieve a net zero target by 2040. People who rent or live in apartments are often unable to install solar panels, and it can be difficult to purchase renewable electricity or Green Power as an option. More storage of renewable electricity means more people can access it. Neighbourhood batteries make the electricity ‘grid’ more efficient for use of cleaner, greener energy into the future.

Depending on the project, the community may be able to access the benefits of neighbourhood batteries in different ways. For example, by living or working in a building powered by energy stored in the battery, providing excess energy generated by their own solar panels to be stored by the battery, or by signing up to an energy plan which sources power from the battery. In some cases, it is possible to invest in a ‘share’ of the battery. Some neighbourhood batteries include chargers for electric vehicles,

The Councils involved in this project are exploring a range of different options and want to hear from community about their preferences and priorities.

Depending on the particular project, neighbourhood batteries can power surrounding buildings on the same low voltage network, or the energy stored may be released into the grid when it is needed most.

Neighbourhood batteries can avoid costly upgrades to the grid, and in this way put downward pressure on energy prices. There are also reduced costs for customers compared to household battery storage systems. However, any changes to your energy bill will be dependent on the operating model of the battery.

For example, the Fitzroy North community battery residents didn’t switch energy plans so there was no change to their bills. For the Power Melbourne project residents would need to change their plan over to a specific provider and product.

No, you don’t. neighbourhood batteries can provide a range of benefits to residents and businesses who do not have solar panels. Depending on the particular project, neighbourhood batteries can power surrounding buildings on the same low voltage network whether or not they have rooftop solar, Where there is an electricity plan associated with a battery, you don’t need to have rooftop solar or be close to the battery to sign up and purchase affordable renewable power.

Households which do have rooftops suitable for solar may be able to connect more solar to the grid, or reduce or avoid export limitations, with a neighbourhood battery.

Batteries typically have a lifespan of 7 to 15 years, if they are operated within the technical limits sets by the manufacturer. End of life recycling and safe disposal will be factored into Council contracts and decisions to purchase.

Yarra Council has partnered with the Yarra Energy Foundation to support the installation of the first inner-urban neighbourhood battery in Fitzroy North, launched in June 2022. The battery project was delivered through the Victorian Government’s Neighbourhood Battery Initiative. The battery soaks up excess rooftop solar and supply surrounding homes with local renewable energy.

You can visit the battery at the corner of Michael and McKean Streets in Fitzroy North, or find out more and watch the video explainers at the Yarra Energy Foundation’s website.