Neighbourhood Batteries Program FAQs

Schools are eligible to apply for 100 NB funding, as long as they meet all eligibility criteria under Section 2 of the Application Guidelines.

When a school does not own the land on which it is located, the application will need to provide:

• evidence showing the status of land access for the proposed project location
• a letter of support from the landowner.

If your school is a Victorian public school, please contact the Victorian School Building Authority (VSBA). Do this as early as possible to discuss the idea and arrange a letter of support.

The VSBA generally works on behalf of the Department of Education to provide approval for school building projects.

Under Streams 1 and 2 of the program grant funding cannot be spent on:

• solar photovoltaics (PV)
• the installation, operation or maintenance of generation technologies (e.g. solar panels, diesel generators).

Note: Generation technologies (including solar photovoltaics) may be delivered alongside the installation of a neighbourhood battery. However, these must be separately budgeted for and funded by the applicant through other funding sources.

Under Stream 3 program grant funding can be spent on projects which include the installation of new solar PV, generator and/or energy management systems. This must be in addition to a neighbourhood battery.

Costs for generator change-over switches and other essential components of an energy back-up system are eligible for funding under Stream 3. Such components must be clearly identified in your project plan and project budget.

Note:

• Any equipment should be carefully considered and only included if integral to project delivery.
• All additional assets will increase the overall project cost and change the value for money data assessed for Criteria 4.

Please consult Section 6 of the Application Guidelines for a list of ineligible expenses and activities.

EV charging infrastructure is not eligible under any of the streams of the 100NB Program.

All past applicants can apply for Round 3 of the 100NB Program.

When you open a new application, click 'View as PDF' (bottom of page). This will display the entire application form as a PDF. You can then download, print and share this form as needed to help prepare your online application.

You can also save and review any part of your application form at any time before submission.

If you would like assistance navigating the application portal, please email grantsinfo@deeca.vic.gov.au and quote your application number.

You will only be eligible to apply for maximum funding of $400,000 per battery/connection point.

If you want to install multiple batteries connected to a single connection point, DEECA will assess this as a single battery.

For example: 2 x 25kWh batteries connected to the same connection point in an apartment building. DEECA would consider this to be a single 50kWh battery.

However, applicants can apply for funding for multiple batteries in the same town, as long as the batteries are connected at different connection points.

Note: as per Section 5 of the Application Guidelines, projects located in areas that have not previously received funding from this program will be given priority.

Applications are made per stream. You are welcome to apply for multiple batteries under one application, but all the batteries must seek funding under the same stream.

For example: if you are applying for batteries under Stream 2 and batteries under Stream 3, please submit two separate applications: one for Stream 2 funding and one for Stream 3 funding.

Eligible applicants may work together to submit a joint application for more than one battery.

For example: community groups from two different towns may wish to make a single joint application for one battery in each of their towns.

Note: there can only be one Lead Organisation per application. The Lead Organisation must have an Australian Business Number (ABN) and be registered for GST.

If successful, all funding will go to the lead organisation for the duration of the project. They are responsible for managing the funding and delivering the project in accordance with a signed Funding Agreement with the State of Victoria.

We encourage any Victorian LGA to apply for 100 NB funding. Irrespective of the LGA, the project and applicant must meet the eligibility criteria outlined on pages 4-6 of the Application Guidelines.

The 100NB Program is a competitive grant program. Funds for the installation of neighbourhood batteries will be allocated to successful grant applicants.

If you want a neighbourhood battery installed, and are in one of the priority 29 LGAs, you must go through the following process:

You must submit an eligible application.

Your application must be assessed as being of sufficient merit in the competitive assessment process.

Your application must be approved for funding by the Minister for Energy and Resources

We assess all applications individually on their merits using the assessment criteria in the   Application Guidelines.

If we receive two or more applications for projects within the same LGA, we will assess both projects against the four assessment criteria. Any application that scores sufficiently highly against the assessment criteria will be recommended for funding.

Note: DEECA reserves the right to approve an application with a reduced number of batteries if some of the proposed battery locations have been or will be funded under another 100NB-funded project.

Under Assessment Criteria 4, you are required to provide evidence of a financial model for your battery, including expected return on investment (ROI), revenues and cost.

For stream 3 applicants, please interpret 'battery' as 'energy back-up system' when reporting expected return on investment (ROI), revenues and cost.

Therefore, you will need to provide the following:

• expected return on investment (ROI) over the life of the energy back-up system(s)
• expected revenues over the life of the energy back-up system(s), including the source of these revenue projections
• expected costs over the lifetime of the energy back-up system(s), with clear breakdown of cost categories

Also required under Assessment Criteria 4:

• the 'calculation of the battery(s) capital cost per kilowatt hour.' This should be based on the battery capital cost alone, not the cost of the full energy back-up system
• the 'calculation of the total project cost per kilowatt hour of total installed battery(s).' This should be based on the kilowatt hour storage capacity of the battery alone, not the generation capacity of the full energy back-up system.

You must have secured, or have evidence of a commitment to provide, a cash co-contribution towards your project. This cash co-contribution must meet the minimum threshold of your chosen funding stream.

An example of evidence may include a letter of support or official correspondence from the source(s) of this co-contribution.

For your neighbourhood battery grant application you will need to provide evidence that you:

• have sought to identify a suitable insurance product
• are aware of the ongoing costs of a suitable insurance product.

A suitable insurance product may provide public liability and/or property insurance.

Evidence may include:

• quotes from insurers or brokers, or
• confirmation that batteries could be covered under pre-existing insurance policies.

It is important that you can demonstrate your awareness of, and planning for, neighbourhood battery operation costs such as insurance in the business plan.

Note  : Ongoing costs are not eligible for grant funding.

You must submit a project budget, using the DEECA budget template (Excel, 33.4 KB),  in your application. This must have costs of your project based on the best available information.

Battery installation costs could be estimated based on desktop research of similar projects. However, quotes from suppliers and/or installers will provide you with greater confidence regarding the accuracy of your project budget. This will also give you greater accuracy in calculating your requested grant amount.

Note: An application with a business case that includes quotes for key budget items is likely to score more highly against Criteria 3 and 4 of the assessment criteria (see Section 7 in the Application guidelines (DOCX, 2.6 MB)).

For further guidance, download the Revenue Cost and Benefit Development Tool (Excel, 181.6 KB) on the 'Tools and resources' page of our website. This tool will assist you to identify the revenues, costs and benefits of your proposed neighbourhood battery project.

A letter of support should confirm a project partner’s   support of the project and may include details such as their:

• background
• connection to the Lead Organisation
• project roles and responsibilities
• cash or in-kind contributions they intend to commit to the project (if any).

There is no minimum funding amount.

Maximum of $400,000 funding available per battery.

If you are seeking funding to install more than one battery please submit a single application. The combined funding sought should equal no more than the total eligible per battery funding.

For instance: an applicant seeking $120,000 funding for one battery project and $330,000 funding for another battery project may make a single application for $450,000 grant funding.

You may seek funding for any number of batteries if they all meet the eligibility criteria. Your application must provide sufficient detail to allow DEECA to assess the merit of both the overall project and each battery against the assessment criteria.

DEECA reserves the right to approve an application with a reduced number of batteries if some of the proposed batteries don’t score well on the assessment criteria. In this situation, the grant funding would be reduced relative to the reduction in number of batteries.

To install solar and/or a back-up generator at locations that have poor energy resilience (eg. suffers from frequent and or prolonged power outages), we would suggest that you apply under Stream 3.

To install a battery at locations that have good energy reliability (ie. rarely have outages and these outages generally don’t last more than an hour), we would suggest that you applied under Stream 2.

The 100 NB Program will fund batteries from 20kW/40kWh to 5MW/20MWh.

You may apply for a battery that is connected behind the meter and can used within an embedded network or microgrid,   if your application meets all other criteria.

You should consider the funding stream that would be most appropriate for your application.

DEECA has no preference to battery types or chemistry, so long as the batteries meet the eligibility criteria. Every battery has different strengths and attributes. You should consider the battery(s) that can best meet your project objectives.

Please note that batteries must be:

• a chemical battery between 20kW/40kWh and 5MW/20MWh
• greater than Technology Readiness Level 9 (Download the Technology readiness levels document).

Stackable modules can be used to achieve the minimum battery size of 20kW/40kWh.

Note: Stackable modules must be connected to a single connection point to be considered as part of the same battery under this Program.

For example, a project installing 4 x 10kW/20kWh stackable battery modules in a series could be assessed as a single 40kW/80kWh battery, if connected to single connection point.

Network benefits of neighbourhood batteries may include:

• better regulation of voltage management
• mitigating minimum and/or peak demand
• increased network reliability
• increased network resilience (for batteries that are part of energy back-up systems)
• reduced costs of network upgrades.

Community benefits may include, but are not limited to:

• decreased bills for low income and vulnerable households.
  Done by installing neighbourhood batteries on new or existing social and public housing stock, especially where onsite solar PV is present
• decreased bills for homeowners and renters.
  Done by installing batteries to reduce existing, or preventing new, export constraints, thereby incentivising installation of solar PV systems by reducing their payback time
• decreased costs for not-for-profit organisations, community groups or local sporting clubs.
  Done by installing batteries on Council-owned or community-owned facilities, such as community kitchens, sport pavilions, community halls, and neighbourhood houses
• increased energy resilience for communities located in network areas vulnerable to prolonged power outages.
  Done by installing energy back-up systems with neighbourhood batteries to continue to supply power to publicly accessible buildings during grid outages.

Example 1: if you install a battery on a community building

• If you install a battery on a community building to reduce the building’s energy costs this is not a net benefit to the community.
• The benefit of the reduced energy costs must be passed on to the community.
• For example, the benefit could be passed on via reduced fees or increased services to the local community.
• The cost savings from reduced energy bills could also subsidise residential energy efficiency upgrades for local low-income residents, or a reduced rate retail offer.

Example 2: If you install a neighbourhood battery on a private commercial premises 

If you install a neighbourhood battery on a private commercial premises this may be eligible for grant funding if your application can demonstrate an operation model that will deliver a net benefit to the community.

For example, this might include using the profits from battery’s operation to subsidise the energy costs of a local community services organisation.

Example 3: If you install a neighbourhood battery for a sports club

Decreasing costs for a local sporting club could constitute a community benefit if the cost savings are passed on to club members or the broader community.

If the installation of a neighbourhood battery on a cricket clubhouse resulted in decreased electricity costs for the cricket club, then the community benefit may be demonstrated by:

• decreased hiring costs for community members who wish to hire the clubhouse for events and/or
• spending savings on upgrading facilities and/or
• purchasing supplies to prepare facilities to provide better community support during emergencies.

Important:

• A battery may deliver multiple types of benefits.
• In all cases, community benefits should be a net benefit to the local community.
• The type and size of the benefits must be described and quantified in your business case and grant application.

The magnitude of the community benefit should be in proportion to:

• savings or revenue generated by the battery
• the number of people (directly or indirectly) receiving the benefit
• the size of the benefit they receive.

For example, a large or multi-battery project should consider how community benefits can be shared equitably across a large number of households.

When you submit your grant application for this program, provide as much detail as possible on the community benefits, including and not limited to:

• if there are energy cost savings, how will those funds be distributed or used?
• who will benefit from the sporting club having reduced energy costs?
• if the project aims to trade on the energy market or be paid for network services, how will the profits be used to benefit the club and/or the broader community?

The Victoria Government wants to ensure that community members feel safe and comfortable having neighbourhood batteries in their local area.

Whether funded by the 100NB Program or otherwise, all neighbourhood batteries are required to meet Australian safety standards and guidelines. This includes adhering to regulations for licensed electrical works that include Australian Standards such as:

• AS/NZS3000 (Wiring Rules)
• AS/NZS 4777 (Inverter Standard)
• AS/NZS 5139 (Battery Installation Standard).

In delivering the projects, all grant recipients are required to comply with all relevant Commonwealth and state/territory legislations and regulations, including but not limited to:

• Occupational Health and Safety Act 2004
• Planning and Environment Act 1987
• Climate Change Act 2017
• Electricity Safety Act 1998
• National Electricity (Victoria) Act 2005
• Electricity Industry Act 2000.

What happens to neighbourhood batteries once they reach their end of life is an important concern for communities. This will become an increasingly important issue as electric vehicles become a larger part of our transport fleet. It is a key focus of the Victorian Government’s policy workstream.

We are currently considering the lifecycle impacts of neighbourhood batteries as part of Victoria’s circular economy policy. This includes product stewardship arrangements that emphasise diverting and reducing battery waste through re-designing and recycling.

You can use grant funding from any of the three funding streams to fund reasonable site works necessary to install a neighbourhood battery.

These could include but are not limited to:

• pouring a concrete slab on which to locate the battery
• upgrading your switchboard
• upgrading a solar inverter to interface with your neighbourhood battery
• upgrading wiring.

Important: these works must be clearly identified in your project plan and project budget.

Note: Any works should be carefully considered and only included if integral to project delivery. These works will increase the overall project cost and change the value for money data assessment for Criteria 4.

Please consult Section 6 of the Round 3 Application Guidelines to check that you are not seeking funding for any ineligible expenses or activities. If you are uncertain, please contact us at neighbourhood.batteries@deeca.vic.gov.au to seek clarification.

Under Stream 3 you can install a neighbourhood battery and other eligible energy back-up system components to enhance the energy resilience capacity of existing infrastructure.

Under Stream 3 you must install a neighbourhood battery that will supply power to a publicly-accessible building during outages.

In addition to the battery, the project may also install other equipment to create a complete energy back-up, such as:

• solar PV
• solar and battery inverters
• management systems.

If you already have an existing assets, such as solar PV or a diesel generator, please document in your application how those assets would be integrated into the energy back-up system with the neighbourhood battery.

If you will not be integrating some existing energy assets into the energy back-up system, your application should explain why.

DEECA will assess all applications against the assessment criteria (see ‘How we will assess applications’ in the Application guidelines (DOCX, 2.6 MB)).

To give yourself the best opportunity to score well on the assessment criteria, we encourage you to include:

• a clear rationale as to why a neighbourhood battery and solar is needed at the site in addition to the existing diesel generators
• what community benefits will be delivered by an energy back-up system that could not be possible with the generators alone.

There is no limit on the number of back-up systems you can apply for, as long as they all meet the eligibility criteria.

If applying for multiple back-up systems in a single application, you must provide sufficient detail to allow DEECA to assess the merits of the overall project and each back-up system individually against the assessment criteria.

DEECA reserves the right to approve an application with a reduced number of back-up systems if some of the proposed systems don’t score well on the assessment criteria. In this situation, the grant funding would be reduced relative to the reduction in number of back-up systems.

The lead organisation does not need to own the land on which the battery is installed; it can be leased from the landowner. However, as part of your application, you will need to provide evidence showing the status of land access for the proposed project location, including a letter of support from the landowner.

If the application is successful in securing an offer of grant funding, a signed Landlord Agreement would be required as a project milestone deliverable under a signed Funding Agreement with the State of Victoria.

Any building that the general public can access is considered publicly accessible  . For example: a building that community/residents or a specific cohort of the general public (where appropriate) can access.

For the purpose of the 100NB Program, project sites should be made available to the public and/or a specific cohort during and after a power outage, in accordance with an emergency management plan.