Community batteries are gaining traction across Australia as a promising solution for the nation’s energy transition. These mid-scale storage systems, ranging from 100 kW to 1 MW, are currently being trialed in various locations, showcasing their potential for cost savings, grid stability, and equitable access to renewable energy resources.

Financial Revenue Streams

Community batteries can generate income through five primary services:

• Customer Demand Management: By storing excess solar energy during low-demand periods and releasing it during peak hours, community batteries help households reduce their electricity costs. For instance, in Western Australia, participants in a trial saved a collective AUD 81,000 over five years, significantly decreasing their reliance on the grid.
• Demand Management for Distribution Network Service Providers (DNSPs): Community batteries play a crucial role in alleviating grid congestion, allowing for greater integration of rooftop solar energy. A notable example is a 250 kW/535 kWh battery installed in North Epping, Sydney, which absorbs surplus solar exports and prevents grid overloads.
• Energy Arbitrage: Community batteries can capitalize on price fluctuations by purchasing energy during off-peak hours and selling it when prices rise. A 1 MW community battery could potentially earn up to AUD 250,000 annually through strategic participation in the energy market.
• Frequency Control Ancillary Services (FCAS): Participation in FCAS markets can generate significant revenue for community batteries. Estimates suggest that a 1 MW community battery could earn around AUD 250,000 per year through this service, contributing to overall grid reliability.
• Network Support: Community batteries also stabilize voltage levels and help avoid costly infrastructure upgrades. The Australian Energy Market Operator (AEMO) projects that coordinated storage solutions could save the grid approximately AUD 4.1 billion in investment costs.

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Case Study: Jacka, Canberra

In the suburb of Jacka in Canberra, a 500 kWh community battery trial demonstrated impressive results:

• Residents experienced double the savings compared to the costs associated with battery installation.
• The community battery achieved a 50% reduction in solar exports to the grid, outperforming traditional household batteries.
• The project increased solar hosting capacity, enabling more installations without requiring extensive grid upgrades.

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Economic Viability Factors

The economic viability of community batteries hinges on several factors:

• Third-party ownership models show promise under current market conditions; however, DNSP-owned models may require regulatory changes to recover costs effectively.
• Revenue stacking , or combining multiple services, is essential for maximizing earnings. Intelligent energy management systems are crucial for optimizing participation across various markets.
• Federal initiatives like the AUD 200 million Community Batteries for Household Solar program aim to support the deployment of approximately 400 community batteries nationwide.

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Challenges and Opportunities

Despite the positive outlook from trials, challenges remain, including regulatory hurdles within the National Electricity Market (NEM) and the need to reduce "local use of service" (LUoS) tariffs to encourage local solar storage adoption. Successful projects like the one in North Epping highlight the scalability potential of community batteries; estimates suggest that deploying 1–2 GW of storage could enhance grid resilience while lowering consumer bills.

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Polygon Energy’s Expertise in Battery Storage Solutions

As a leading provider of renewable energy and battery storage solutions, Polygon Energy specializes in designing and implementing community-scale battery systems and microgrids. Our expertise extends across grid-connected and standalone off-grid solar systems, ensuring efficient energy storage, reduced reliance on the grid, and financial savings for businesses and communities.

Our Key Projects:

• Community-Scale Battery Storage for a Resort (NSW): A planned 2500 kWh storage system to optimize solar energy use and participate in grid support services.
• Evoenergy Gudgenby Cottage Off-Grid System (ACT): A 50 kWh battery storage system enabling independent renewable energy generation.
• BAPS Temple, Taylor (ACT): A 52 kWh battery system supporting the temple’s energy needs and reducing operational costs.

Polygon Energy’s turnkey solutions cover feasibility studies, project implementation, and long-term maintenance, ensuring that businesses and communities maximize the benefits of renewable energy investments.

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Power Your Future with Polygon Energy

Community batteries represent a practical step toward achieving decarbonization goals while providing financial benefits and democratizing access to renewable energy sources. With Polygon Energy, you get cutting-edge battery storage solutions that deliver real-world results.

Looking to invest in community battery solutions?

Contact us today: bhavin@polygonenergy.com.au / 0469 779 990