Community batteries: the next big thing for solar

Western Power, a government owned power company based in Western Australia, states  proudly that they are empowering customers by offering the latest innovations in the form of community batteries. Similarly, Enova Energy and Ausgrid are thrilled with their involvement with the myriad of benefits associated with the community battery. 

Despite trials beginning in Australia prior to 2016, it wasn't until 2020 that the idea of community batteries really started to buzz.   

Also known as virtual Power Plants, a community battery involves a network of solar-powered homes that operate collectively to generate and store energy. 

The community battery size ranges from  100kW to 1MW and could be the size of a fridge or shipping container. Each household is provided with a specific  amount of storage. Much like a privately owned battery, energy  can be drawn from the battery at any time to power customers' homes or to support the grid. 

In Australia 1 in every 6 households have solar, yet only 1 in every 60 have an accompanying battery. This not only poses  the issue of energy storage, (especially for night use)

but also represents a loss of investment as the return from feed-in tariffs is rapidly declining. Without a storage unit many Australia are simply not making the most of their solar.

The low purchase rate of batteries across Australia is predominantly due to pricing. Although rebates are available, the price for batteries is still relatively high and isn't expected to reduce in the next 3 years. 

With the need for batteries in mind coupled with the current high cost of installation, the demand for community batteries is evident. 

Typically the installation and maintenance  of community batteries is managed by a private company or the local council. These batteries allow locals to pool the energy their panels generate without having to cover the cost of a battery. 

In theory these community batteries appear to be every solar owners dream. According to a  five-year long project  Western Australian this theory is in fact a realty. The trial use of energy storage at community-scale in a single suburb achieved an 85% reduction in consumption of energy from the grid at peak times for participating households. There have also been successful trials in NSW. 

Despite the many incentives associated with the community battery, widespread implementation appears to be several years away. It is now a wait and watch game for solar customers.