The energy transition is moving faster than our poles and wires can handle.
Solar rooftops are very popular, but when solar generation exceeds local demand, it leads to voltage rises, frequency imbalances, and potential overloading of network equipment. In such cases, grid operators often curtail solar exports, wasting clean energy generated in our communities.
This boom-and-bust cycle contributes to higher electricity prices as solar exports become a dominant market force. Daytime prices drop when solar is abundant, only to surge in the evening as demand rises and solar generation fades. This unpredictability makes it harder to hedge prices effectively, often leading to higher costs during peak times.
Enter the community battery.
A community battery stores surplus solar energy during the day and releases it in the evening, helping to smooth out price fluctuations. These mid-sized batteries also provide backup power during outages and can be integrated into local networks to support critical infrastructure.
Proof it works: Yackandandah’s ‘Yack01’ and the Black Summer Bushfires.
In 2021, we partnered with Totally Renewable Yackandandah to install a 65 kW solar array and 274 kWh battery at the Agency of Sculpture. Now, this system exports stored energy to the local grid each evening, turning a workshop roof into a small power plant.
Following the Black Summer Bushfires, we installed three community batteries at hospitals and an emergency relief centre in Corryong. Locals now have reliable backup power at these sites, and these critical community sites benefit from lower electricity costs every day.
Why scale now?
- Network constraints: Grid managers are increasingly identifying rural feeders at risk of export or import limits. On-site storage can solve this problem, avoiding costly network upgrades that would increase customer bills.
- Wholesale price volatility: The 2022 energy crisis showed how fossil fuel shortages can spike prices. Community batteries help stabilise regional power bills.
- Falling battery costs: Battery prices have dropped 25-30% since we submitted our ARENA EOI in June 2023, and local manufacturers are offering high-quality, competitively priced products.
The bigger picture
For Indigo Power, community batteries are more than a technical solution; they’re an opportunity to increase community participation in the energy transition. Ownership can rest with councils, community organisations, or with community-owned companies like Indigo Power, ensuring the benefits of renewable energy stay within the community.
What’s next?
ARENA has committed $4.24 million towards ten new batteries across Victoria and southern New South Wales. To unlock this funding, we need a $1.54 million co‑contribution – part of which will come from a BankWAW loan and part from the Equity Crowd-Sourced Funding (ECSF) offer now open.
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Ben is Indigo Power’s Managing Director. He has a passion for collaborative initiatives that positively impact our communities. Ben leads our skilled and committed projects team, driving the uptake of community-scale clean energy technologies in communities around Australia.