The role of neighbourhood batteries 

With the push to electrify everything, what role will neighbourhood batteries play?

Australia already has the most solar per capita in the world.  The recent budget provides another boost for residential solar, with the provision of accessible loans for households to install solar panels.

With more solar in the system and more electrified homes, the need for storage will grow – particularly where the energy is being produced and consumed.

For many though, home batteries are out of reach due to cost or housing constraints. Most people may never see a return on investment.

Neighbourhood batteries store energy from local solar and distribute it back into the community in the evening.  In many cases, they are the only communal asset to store this energy on the distribution network.

The increased funding from the federal Budget will increase the uptake of solar PV and electric appliances, such as reverse cycle air conditioners and hot water heat pumps. 

This will put the grid under an increased level of stress as electricity demand and solar exports both rise. Rooftop solar is predicted to increase from the current 15GW to reach 70GW by 2050.

Neighbourhood batteries can provide dynamic support to ease strains on the network by powering up during the day and discharging during peak times.

Excess solar energy can be stored locally and shared amongst the community once the sun is no longer shining.

This means batteries can help redistribute renewable energy to residents that are locked out of solar (renters, apartment dwellers, unsuitable roofs).  All homes within the battery’s catchment area, not just those with solar, can consume electricity with higher renewable content.

And by locating EV chargers alongside neighbourhood batteries, a climate and community-friendly charging system can be provided for electric vehicles.

It's an alternative for those wanting to buy an EV but are unable to install an EV charger at their home, either due to space or cost constraints, or because they rent.

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