ARENA Community Batteries Funding Round 2

Purpose and Program Overview

The ARENA Community Batteries Funding program is a strategic initiative by the Australian Government, outlined in the 2022-23 Federal Budget with $200 million allocated for the Household Solar budget measure to deploy 400 community batteries nationally. The primary aim is to support the large-scale deployment of community batteries across Australia.

The core objectives of the program are to lower energy bills for households, contribute to emissions reduction, reduce pressure on the national electricity grid, and facilitate the further installation of distributed solar power. The program specifically seeks to fund projects that improve the economics of community battery deployment and build industry capacity to execute such projects at scale.

A total funding pool of $171 million is available under the overall program. This initiative plays a vital role in supporting the energy and technology sectors by driving innovation, enhancing grid resilience, and aiding the integration of distributed energy resources into Australia’s market systems. Round 2 has a specific allocation of $46.3 million.

Key Grant Details

• Grant amount or funding range: Grants between $5 million and $20 million are available per project.
• Application open and close dates: The Expression of Interest (EOI) stage for Round 2 opened on 17 March and closed on 30 April 2025. The Full Application stage (by invitation only) opened on 1 July and closed on 1 September 2025.
• Eligible industries or business types: Eligible applicants include Australian entities incorporated under the Corporations Act 2001 (Cth), Commonwealth government business enterprises, Australian State or Territory owned corporations (or subsidiaries), and Australian local governments or councils.
• Required co-contributions: Yes, a co-contribution is required. The grant funding provided must not exceed 50% of the total Battery Capital Expenditure (Capex).
• Location/state/territory applicability: The program is applicable to projects across Australia.

Priority Sectors

While the grant is open to various entity types, it is highly focused on the Energy, Technology, and Utilities sectors, particularly those involved in the deployment of large-scale, grid-connected battery storage. Applicants must demonstrate capability and capacity within the field of distributed energy resources and network integration.

Funding Scope

The funding is specifically allocated for capital works related to battery installation.

• Minimum and maximum amounts: Grant amounts range from a minimum of $5 million to a maximum of $20 million per project.
• Categories or streams of funding: Funding is directed toward the Community Battery component (Battery Capex) of the project.
• Project timeline or eligible funding duration: This information is not explicitly detailed in the program overview.

Eligibility Criteria

Applicants must hold an Australian Business Number (ABN) and meet all eligibility criteria outlined in the ARP Guidelines, including the following key requirements:

• Business Structure: Must be one of the following: an Australian entity incorporated under the Corporations Act 2001 (Cth), a Commonwealth Government Business Enterprise (GBE), an Australian State or Territory owned corporation/subsidiary, or an Australian local government/council/representative organisation.
• Scope of Activity: Projects must involve the deployment of at least ten community batteries.
• Battery Specifications: Batteries must be chemical batteries, connected to the Distribution Network, have a nameplate capacity between 50 kW and 5,000 kW, and be at least Technology Readiness Level (TRL) 9.
• Restrictions: Batteries at individual households are not eligible. Grant funding is only applicable to the Community Battery component.
• Round 2 Exclusion: Projects that have previously received funding under the Community Batteries for Household Solar Program – Delivery of Election Commitments grant or ARENA’s Community Batteries Funding Round 1 are ineligible for Round 2 funding.

Eligible Activities and Expenses

The grant strictly supports the deployment of community batteries that meet the specified technical criteria.

• Capital equipment: Funding is available for the purchase and installation of eligible community batteries.
• Eligible Expenses: Grant funds can only be used for the Battery Capex component of the community battery deployment project.

Assessment Process

The ARENA Community Batteries Funding program is implied to be competitive, operating via a two-stage process beginning with an Expression of Interest (EOI) and followed by a by-invitation Full Application.

The key evaluation criteria for assessing proposals include:

• Strategic Alignment: The degree to which the project contributes to the Round 2 objectives.
• Applicant Capability: Assessment of the applicant’s capacity and capability to successfully deliver the proposed activity.
• Activity Design and Risk: Evaluation of the project’s methodology, design, and plan for risk and compliance management.
• Financial Viability: A review of the project’s financial plan and the commitment to co-funding (minimum 50% co-contribution).
• Knowledge Sharing: The proposed approach for sharing knowledge gained from the project to benefit the broader industry.

Recent Program Updates

The Community Batteries Funding is currently in Round 2, which has a specific funding allocation of $46.3 million from the total $171 million program pool. Round 2 requires applicants to meet the criteria outlined in the ARP Guidelines and adheres to additional exclusions, making prior recipients of related battery programs ineligible for this funding round. The key dates for the 2025 round have now passed.

Application Tips

Applicants should dedicate substantial effort to ensuring strict compliance with all eligibility requirements, particularly the technical specifications for the batteries (TRL 9, 50kW–5000kW, chemical) and the minimum requirement of deploying at least ten community batteries. Given the mandatory co-contribution, preparing a robust financial viability plan and a clear demonstration of the committed co-funding is essential. The proposal should clearly articulate the expected national benefits, including the net benefit to the electricity network, and detail a comprehensive knowledge sharing plan to strengthen the application’s alignment with the grant’s objectives.

Where to Get Help

Consider consulting a grant specialist for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact us today, and we will connect you with Australia’s best grant specialist, boasting over 35 years of experience in the industry and a 100% success rate. For official guidelines, application details, templates, and further information, visit the program’s official website and other associated Australian government websites.