As Australia moves rapidly toward a clean energy future, the role of decentralised storage is coming into sharper focus. One shining example is Victoria’s Neighbourhood Batteries Program, now entering its third round with a significant funding boost and growing community interest. In this blog post, we’ll break down what this policy means, how it helps households and energy retailers, and why now is the right time to invest in solar battery solutions.
What is the Neighbourhood Batteries Program?
Launched in 2023 by the Victorian Government, the Neighbourhood Batteries Program aims to empower local communities by installing shared battery systems that store excess solar energy and increase grid stability.
In its third round (2025–2026), the program offers $6.6 million in new grants to deliver at least 10 additional solar battery units, on top of the 90 already funded across 85 towns statewide. Each project can receive up to $400,000, supporting solar battery installations ranging from 20 kW/40 kWh to 5 MW/20 MWh.
These batteries are not just backup power sources, they’re a core component of a flexible, resilient energy network.
Why Solar Batteries Matter in Local Energy Resilience
Supporting Energy Equity
Neighbourhood batteries offer energy access to renters, low-income families, and households unable to install rooftop solar. By sharing the benefits of energy storage, they help democratise the solar transition.
Improving Grid Reliability
Solar batteries store excess power during the day and release it during peak evening demand, helping to smooth out supply spikes and reduce pressure on local infrastructure.
Powering Emergency Services
Under Stream 3 of the funding program, some batteries must support publicly accessible buildings, like schools or halls during grid outages, providing critical energy resilience during bushfires, storms, or other disasters.
Who Is Eligible for Funding?
The Victorian Government is targeting underrepresented Local Government Areas (LGAs), including:
- Casey
- Wyndham
- Moonee Valley
- And six others not previously funded
These areas are prioritised to ensure fair distribution and enhanced resilience across the state.
Projects can be funded under three distinct streams:
- Network & Community Benefits: Improves grid stability while delivering social value.
- Community-Only Benefits: Empowers communities with shared energy access.
- Energy Resilience: Supports key infrastructure in emergencies.
Key Funding Criteria
Successful applications must demonstrate:
- Technical feasibility
- Safety (including fire management plans)
- Community engagement
- Value for money
- Ability to connect to the grid or operate behind-the-meter
Projects must be delivered by 31 August 2027.
How Solar Batteries Complement Victoria’s Climate Strategy
The Neighbourhood Batteries Program aligns with the state’s larger emissions reduction targets and complements existing programs like:
By combining solar battery systems with rooftop solar and smart inverters, Victoria is building the blueprint for community-led renewable energy infrastructure.
Solar Batteries: Key Features & Benefits
At the heart of these programs are solar batteries, which come with a host of features and long-term benefits.
Key Features
- Lithium Iron Phosphate (LFP) Chemistry: Safe, long life, and high cycle stability
- Integrated Battery Management Systems (BMS): Real-time monitoring and fault detection
- Weatherproof Enclosures (IP66 or above): Outdoor installation ready
- Hybrid Compatibility: Can pair with existing solar inverters or be part of a new system
Benefits for Households and Businesses
- Lower Power Bills: Store solar during the day and use it at night
- Increased Solar ROI: Get more out of rooftop systems
- Backup Power: Protect against blackouts
- Participation in Energy Trading: Join VPPs or sell stored power back to the grid
Why This Program Supports Local Solar Suppliers
For solar suppliers, installers, and battery manufacturers, this program opens up:
- New markets in nine underfunded LGAs
- Strong co-funding opportunities (up to 30% cash contribution preferred for network projects)
- Repeat business for maintenance and system upgrades
Solar Rains, as a trusted solar product wholesale partner, supports this growth with a reliable supply of:
- Solar battery systems
- Inverter technologies
- Cabling, connectors, and installation accessories
We recommend solutions tailored for both small community projects and commercial-scale installations.
See Solar Battery Range.
FAQs
Neighbourhood batteries are medium-sized storage units that connect to the local grid. They charge during periods of excess solar production and discharge when demand is high.
No. Home batteries store energy for one household. Neighbourhood batteries serve multiple users and can improve energy equity for renters and low-income residents.
Not necessarily. Even if you don’t own solar panels, you can benefit from lower local energy costs and improved energy stability when neighbourhood batteries are installed in your area.
Most projects use Lithium-ion (LFP) batteries for their safety and reliability. These are standard across Solar Rains’ product lines.
Conclusion
Victoria’s continued investment in solar battery infrastructure shows just how important decentralised energy storage is to the future of Australia’s power system. From cost savings to energy equity and climate resilience, neighbourhood batteries are delivering benefits far beyond the grid.
At Solar Rains, we’re proud to support community projects with quality solar batteries, inverters, and energy accessories that meet Australian standards and evolving customer needs.
Now’s the time to take part, whether you’re a community group, solar supplier, or local council. As Round 3 opens, let’s power up Victoria together.
