UK government mulls Australia-style community battery subsidy program

The UK government has proposed deploying shared battery storage across the country in a bid to cut electricity bills for consumers. Policies under consideration include an Australian subsidy scheme that has funded more than 300 batteries ranging from 50 kW to 5 MW.

Community batteries operate by allowing multiple homes to access stored electricity, meaning households can engage in the kind of energy arbitrage activity that is commonplace in the utility-scale battery storage sector.

While the UK government has been ramping up support for rooftop solar deployment and household electrification, not all UK properties are suitable for a battery installation – some households in rented accommodation or apartments are unable to adopt the technology.

The government is exploring options to rollout community batteries at scale and has launched a consultation seeking views on how community batteries might be deployed. A handful of community battery projects are already operating in the United Kingdom, but the government pointed to markets such as Australia as examples to model.

Australia’s Community Batteries for Household Solar program is singled out in the consultation as a policy success, and the government said it is “keen to explore” whether this model or a similar approach could be adapted for the United Kingdom. The Community Batteries for Household Solar is backed by AUD 200 million ($143 million) in federal funding.

Examples from European markets are also being examined, such as the Netherlands and Germany, where community batteries have been integrated into local energy systems, but not at the scale seen in Australia.

There are challenges to a UK community battery rollout that the government is also seeking views .

Technical barriers outlined in the consultation include the need for bespoke software and active management for virtual private network and microgrid community battery projects. Incomplete smart meter coverage limits access to flexible tariffs, preventing some households from accessing the cash saving benefits that come from reducing peak load.

Grid connections have also been identified as more complex, costly and time-consuming for community batteries to secure compared to an individual residential battery or solar installation. This is due to their relative size and the associated infrastructure needed.

Financial challenges and public awareness have also been identified by the government as potential barriers to deployment.

UK Energy Minister Michael Shanks said a more flexible energy system is needed for households to feel the full benefit of clean power, adding that “community batteries can help deliver it.”

“This is about putting power back into the hands of local people and ending our reliance on fossil fuel markets driving the affordability crisis – helping communities to take control of their energy, build local wealth and restore pride in place.”

For the purpose of the consultation, the government defines a community battery as one which serves multiple homes “with direct bill savings distributed to each home.” The government expects these batteries would ordinarily be installed alongside community or privately owned solar.

Industry stakeholders are invited to submit their views on how to scale up deployment, remove regulatory and commercial barriers and ensure safety via the UK government’s website. The call for evidence closes on July 30, 2026.