Community Batteries as a Solution to Solar Grid Congestion?
SOLAR INSIGHTS

Community Batteries as a Solution to Solar Grid Congestion?

By Brendan Bostock | 24 Dec 2025

Community Batteries: A Solution to Australia's Solar Gridlock?

Australia is basking in the solar revolution, with rooftop solar installations booming across the country. According to recent data, rooftop solar contributed significantly to Australia's electricity supply in 2024. However, this success comes with a challenge: grid congestion. As more homes and businesses generate their own power, the existing electricity grid struggles to cope with the influx of energy, leading to inefficiencies and potential instability. But there’s a promising solution on the horizon: community batteries. If you want to learn more, check out this Complete Guide.

What are Community Batteries?

Imagine a shared energy storage system for your neighbourhood. That's essentially what a community battery is. Think of it as a collective energy bank where excess solar power generated by households and businesses can be stored and then drawn upon when needed by the community. These batteries are typically owned and operated by electricity retailers or network operators, rather than individual households.

Why are They Needed?

The sun doesn't shine constantly, and electricity demand fluctuates throughout the day. When solar panels generate more electricity than homes can use, that excess power is pushed back into the grid. This often happens during the middle of the day when demand is low, leading to grid congestion and even forcing solar generators to curtail their output – effectively wasting valuable renewable energy.

While household batteries are becoming increasingly popular, only a small percentage of solar households currently have them. This means a significant amount of solar energy is still being fed into the grid at times when it's not needed. Community batteries offer a way to capture and store this excess energy for later use, smoothing out the peaks and troughs of solar generation and demand.

How Do They Work?

Community batteries come in various sizes, typically ranging from 50kW to 5MW. They are strategically located within communities – near parks, shopping centres, retirement villages, or other high-demand areas – to maximize their efficiency.

During the day, when solar panels are generating excess power, the community battery absorbs this surplus energy. Then, during peak demand periods, such as evenings when people are home and using appliances, the battery releases the stored energy back into the grid, supplementing the supply from traditional sources.

Benefits of Community Batteries

Community batteries offer a multitude of benefits for Australian communities:

  • Reduced Electricity Bills: By storing and using locally generated solar power, community batteries can help reduce reliance on the grid and lower electricity costs for participating households.
  • Increased Grid Stability: By managing the flow of electricity and reducing congestion, community batteries contribute to a more stable and reliable power grid.
  • Improved Solar Utilization: They prevent the wastage of excess solar energy, ensuring that more of the renewable energy generated by households is actually used.
  • Greater Energy Independence: Community batteries empower communities to become more self-sufficient in terms of energy, reducing their dependence on centralised power generation.
  • Enhanced Resilience: They can provide backup power during blackouts, especially in regional and bush communities, ensuring access to essential services.
  • Supporting Infrastructure: Community batteries can bolster the reliability of essential services like phone, internet, and rail networks.

Government Support

The Australian government recognises the potential of community batteries and is actively supporting their deployment. The federal government has allocated significant funding to the "Community Batteries for Household Solar program," with the aim of deploying hundreds of community batteries across the country.

The Future of Community Batteries in Australia

As Australia continues its transition to a renewable energy future, community batteries are poised to play an increasingly important role. They represent a practical and effective solution to the challenges of grid congestion, while also offering a range of benefits for communities and the environment.

By embracing community batteries, Australia can unlock the full potential of rooftop solar and create a more sustainable and resilient energy system for all. Keep an eye on SolarInsights for more on local storage options as they emerge.

Brendan Bostock
Written by Brendan Bostock

Editor in Chief & Solar Enthusiast

Connect on LinkedIn