Victoria’s 100 Neighbourhood Batteries Program is entering its third phase, with the State Government opening applications for a further $6.6 million in funding to install distributed energy storage across the state.
Round 3 aims to deliver at least 10 additional neighbourhood-scale batteries, bringing the total funded under the program to over 100 units since it launched in 2023.
Grants of up to $400,000 per battery are available, with applicants able to bundle multiple battery systems under one proposal if located at separate connection points.
Administered by the Department of Energy, Environment and Climate Action (DEECA), the program targets deployment of stationary chemical batteries between 20kW/40kWh and 5MW/20MWh.
Projects must be delivered by 31 August 2027 and can be funded under three distinct streams: network and community benefits (Stream 1), community-only benefits (Stream 2), or energy resilience (Stream 3), the latter requiring systems that support publicly accessible buildings during grid outages.
Round 3 prioritises projects in nine Local Government Areas yet to receive funding under earlier rounds, including Casey, Wyndham, and Moonee Valley. It also targets installations that support energy equity, such as those in constrained networks or areas with high outage incidence, or for households unable to access rooftop solar.
The program builds on the earlier $10.92 million Neighbourhood Battery Initiative and complements Victoria’s broader emissions reduction strategy. To date, funded projects have spanned 85 towns, with the first two rounds delivering 90 batteries in total.
Co-contributions are strongly encouraged and influence assessment weighting. For example, a 10 per cent cash contribution is recommended for community-focused proposals, while 30 per cent is preferred for projects delivering network benefits. In-kind support cannot be counted towards this co-contribution.
Successful proposals must demonstrate technical feasibility, financial value, and local benefit. Key criteria include community engagement, battery safety and fire risk plans, and grid connection status. Behind-the-meter projects must include solar PV generation and provide detailed consumption modelling.
“Neighbourhood batteries return power into the hands of local communities – giving them a secure energy supply,” said Minister for Energy and Resources Lily D’Ambrosio.
Acting Premier Ben Carroll added; “We’re on the side of Victorian families – helping drive down the cost of power bills with cheaper, cleaner renewable energy.”
Applications open 15 July and close on 15 September 2025. More details are accessible here.