Grants up to $20 million to support deployment of community batteries to lower energy bills, cut emissions and ease pressure on the local electricity grid.
On this page you will find
What is the Community Batteries Funding program?
The Community Batteries Funding Round 2 is administered by the Australian Renewable Energy Agency (ARENA) under the Advancing Renewables Program (ARP). It supports the deployment of community-scale battery storage projects to improve Australia’s renewable energy integration, reduce barriers to large-scale community battery deployment, and contribute to more affordable and sustainable energy for households.
Round 2 is competitive, meaning proposals will be ranked against each other. Only the highest-ranking projects will progress and ultimately receive funding. It is not open to projects that have previously received ARENA support under Round 1 or from the Department of Climate Change, Energy, the Environment and Water’s Community Batteries for Household Solar Program.
The application and assessment process will be conducted in two stages:
- EOI stage
- Full Application stage
Community Batteries Funding level of support
Minimum and Maximum Funding Amount
- Minimum grant request: AUD 5 million
- Maximum grant request: AUD 20 million
Co-Contribution Requirement
- ARENA funding can cover up to 50% of eligible Battery Capex costs.
- Applicants must provide at least 50% of the Battery Capex from other sources (e.g. equity, debt financing, or in-kind contributions).
Community Batteries Funding important dates
- EOI Due Date: 30 April 2025, 11:59 PM AEST
- EOI Outcomes: Applicants can expect to receive an invitation (if successful) to proceed to a Full Application within approximately 8 weeks after the EOI due date.
- Full Application Stage:
- Only those invited will submit Full Applications.
- A final Full Application Due Date will be confirmed by ARENA in writing (and no later than the date stated in the invitation).
- Notification of Funding Decisions: Following the assessment of Full Applications, successful applicants will receive a non-binding Offer to Negotiate a Funding Agreement.
- Register your interest with GrantHelper
Community Batteries Funding objectives and outcomes
Funded projects must contribute to at least one (and ideally more) of these outcomes:
- Improving the economics of community battery projects by reducing or removing barriers to large-scale deployment.
- Building industry capacity to deploy community batteries at scale.
- Supporting the integration of distributed energy resources (DER) into Australia’s energy markets and operator systems.
- Demonstrating the benefits of community batteries by:
- Putting downward pressure on household electricity costs.
- Contributing towards lowering emissions.
- Providing a net benefit to the electricity network.
- Enabling storage of distributed solar energy for later use or sharing, and supporting further distributed solar installations.
Projects eligible for Community Batteries Funding support
Projects must involve:
- The deployment of at least ten (10) community batteries (50 kW to 5000 kW each, TRL 9, connected in the distribution network).
- Batteries sized or aggregated to at least 50 kW nameplate capacity and not located at individual households.
- New battery installations only (not expansions of an existing battery unless it meets the new capacity criteria).
- Activities aligned with at least one of the Round 2 key objectives outlined above.
Ineligible Expenditure
While the guidelines focus on eligible Battery Capex and associated costs, the following expenditures (or items) are explicitly excluded or ineligible for Round 2 funding:
- Batteries at individual households (i.e. strictly behind-the-meter residential battery systems).
- Any part of a project that has already received grant funding under ARENA’s Round 1 or the Department’s Community Batteries for Household Solar Program.
- Costs not directly related to the community battery component (for instance, if co-located with other generation, ARENA funding can only be used for the battery itself).
- General “soft costs” and development costs that do not contribute to the actual Battery Capex, including any ineligible overseas expenditure not approved by ARENA.
See the CBF guidelines and FAQs for full details of eligible projects.
Community Batteries Funding important details that you will need to know
Organisations eligible for Community Batteries Funding support
Eligible applicants must:
- Comply with the Advancing Renewables Program (ARP) Guidelines.
- Be an Australian entity (for example, an Australian company, research organisation, or council), or otherwise meet the ARP’s applicant eligibility requirements.
- Demonstrate clear capability and capacity to deliver community battery projects.
Projects are ineligible if they have already been funded under Round 1 or under the Department’s Community Batteries for Household Solar Program – Delivery of Election Commitments.
Community Batteries Funding assessment criteria
All proposals must address five Merit Criteria, which are equally weighted. Since there are five criteria, you can consider each to be worth 20% of the total assessment. These criteria are:
1. Contributes to the Round 2 Objective (20%)
- How well the proposal aligns with the community battery outcomes.
- Volume, deployment speed, and commercial viability.
- Emphasis on community engagement and benefits.
2. Applicant Capability and Capacity (20%)
- Relevant experience and track record of the applicant and key partners.
- Technical expertise, financial strength, and operational readiness.
3. Activity Design, Methodology, Risk and Compliance (20%)
- Clarity of the project plan and methodology.
- Quality of community consultation measures.
- Detailed risk management framework addressing public infrastructure aspects (fire, vandalism, cybersecurity, etc.).
- Alignment with regulatory and planning requirements.
4. Financial Viability and Co-Funding Commitment (20%)
- Evidence of a solid financial model and sustainable revenue assumptions.
- Provision of at least 50% co-contribution of the Battery Capex.
- Total Project Cost vs. requested grant funding (value for money).
- Ability to manage contingencies and cost overruns.
5. Knowledge Sharing (20%)
- Quality of proposed knowledge sharing deliverables (reports, data, insights).
- Plans for capturing and disseminating lessons learned to the broader market.
Proposals scoring highly on all five criteria will be ranked above lower-scoring proposals in this competitive round.
How do I get the Community Batteries Funding?
Applicants must:
- Read and understand the guidelines.
- Ensure eligibility for the funding. Applicants that do not meet all the eligibility criteria will not be considered.
- Demonstrate a strong alignment with the fund’s objectives.
- Provide complete information requirements.
Information to prepare for the Community Batteries Funding application
Submit the following documents with your application:
- Project Plan
- Budget in Excel or similar format
- Financial Model in Excel or similar format
- Project Funding and Sources and Uses Table in Excel – applicant must use the template provided
- Conflict of Interest Declaration – applicant must use the template provided
Applying for Community Batteries Funding
Submit an Expression of Interest (EOI) through ARENA’s Grants Management System (ARENANet) by the due date, addressing all eligibility and merit criteria.
If invited, submit a Full Application with a detailed Project Plan, expanded budget, finalised financial model, Risk Management Plan, Community Consultation Plan, and Knowledge Sharing acceptance.
Register your interest with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
Community Batteries Funding resources
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