Neighborhood Battery

A neighborhood battery is a shared energy storage that allows households in the same neighborhood to store locally generated renewable energy together. Instead of each house having its own battery, you join forces and share one big battery.

Bob Hermans

Bob Hermans

7/8/2025
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This concept responds to the growing need for smart and efficient ways to use energy. Excess power does not go to waste and the power grid is less burdened, thus better accommodating peaks and troughs in consumption. As a result, supply remains stable and more green power can be utilized locally.

In addition to the technical benefits, a neighborhood battery also has social added value. It is a joint investment in a sustainable future, with residents actively contributing to a reliable and green energy system as well as benefiting from the advantages of collective storage.

Importance of neighborhood battery?

A neighborhood battery is a large, shared battery placed at the district or neighborhood level to store locally generated energy. This includes energy from solar panels, wind turbines or other renewable sources in the area. Instead of this excess energy going directly back into the grid, it is stored for later use when demand exceeds direct production.

The importance of a neighborhood battery lies in improving the balance between generation and consumption. At a time when more and more households and companies are switching to renewable energy, the pressure on the electricity grid is increasing. At peak times, the grid can become overloaded, while at other times there is a surplus of energy. A neighborhood battery helps accommodate these peaks and valleys, keeping the grid more stable and reducing the risk of outages or feed-in problems.

What a neighborhood battery does

A neighborhood battery acts as a large energy storage unit connected to both local power generation and the grid. When the neighborhood produces more energy than is consumed directly, the neighborhood battery stores this surplus. At times when energy production is lower, such as in the evening or on dark winter days, the battery delivers this stored energy back to households.

The charging and discharging process is controlled by smart software that continuously monitors how much energy is being generated, stored and used. This allows the battery to automatically respond to the neighborhood's energy demand without residents having to actively do anything.

In addition, a neighborhood battery can contribute to stability in the power grid. By accommodating peaks in supply and demand, overloading is prevented and the supply of power can be more reliable. This not only benefits connected households, but also the grid operator and the broader energy infrastructure.

Difference between neighborhood batteries and home batteries

Although neighborhood batteries and home batteries are both designed to store energy, they differ in several ways. Both systems have their own advantages and applications, depending on the energy needs and situation.

Aspect: Neighborhood Battery vs Home Battery

  • Target
    • Neighborhood battery: Collective storage of locally generated energy for multiple households
    • Home battery: storage of energy for individual use by one household
  • Scale
    • Neighborhood battery: district or neighborhood level
    • Home battery: Household level
  • Capacity
    • Neighborhood battery: Several hundred kWh to MWh
    • Home battery: a few kWh to tens of kWh
  • Management
    • Neighborhood battery: professional or by cooperatives
    • Home battery: By the owner of the battery
  • Property
    • Neighborhood battery: Commonly owned or owned by an energy company/cooperative
    • Home battery: privately owned
  • Cost sharing
    • Neighborhood battery: Shared by participants or through a subscription model
    • Home battery: Completely for the owner's account
  • Netimpact
    • Neighborhood battery: Helps stabilize power grid on a larger scale
    • Home battery: Helps dampen spikes in individual consumption

Benefits of a neighborhood battery

A community battery offers a range of benefits for both participants and the broader energy system. Collectively storing and using energy creates more efficient and sustainable energy management within the community. This contributes not only to lower energy costs, but also to a more robust and future-proof power grid.

  • Optimal utilization of locally generated renewable energy
  • Reduction of feed-in problems and grid overloads
  • Cost savings through shared investments and more efficient energy use
  • Increasing community energy independence
  • Better balance between energy generation and consumption
  • Contribution to CO₂ reduction and sustainability
  • Strengthening neighborhood social cohesion through joint participation

These benefits make a neighborhood battery an important link in the energy transition, with collective solutions becoming increasingly valuable in a future with renewable energy as the norm.

Safety measures for a neighborhood battery

A neighborhood battery is a powerful system that stores large amounts of energy. Therefore, strict safety measures are required to ensure both installation and operation are safe. These measures protect not only the technology, but also the people in the area and the power grid.

One of the most important aspects is fire safety. Neighborhood batteries are equipped with sophisticated fire detection and extinguishing systems that respond immediately in the event of overheating or short circuits. In addition, battery placement is often in a specially designed enclosure or container that can withstand extreme weather conditions and physical damage.

A robust monitoring system is also provided. This system continuously monitors parameters such as temperature, charge status and voltage, and can automatically intervene in case of deviations by, for example, switching off the battery. Periodic maintenance and inspections by certified technicians are thereby mandatory to ensure safety.

Cost of a neighborhood battery

The cost of a neighborhood battery depends on several factors, including the storage capacity, the technology used, the location and the scale of the project. A neighborhood battery with a large capacity and sophisticated control systems can be significantly more expensive than a smaller, simpler installation. The total investment can range from several tens of thousands to several hundred thousand euros.

For the neighborhood as a whole, costs are often shared among all participants. In many cases, cooperative models are used where residents co-own and jointly invest in the battery. This makes it more financially feasible and ensures that the burdens and benefits are shared fairly. For individual households, participating in a neighborhood battery usually means a lower investment than purchasing their own home battery.

Supporting the energy transition with a neighborhood battery

Energy transition requires smart, collective solutions that make renewable energy available and reliable on a large scale. A neighborhood battery plays a crucial role in this by storing locally generated energy and making it available at the right times. By investing collectively, you actively contribute to a future-proof energy system.

Do you want to discover how you and your neighborhood can make a difference and contribute together to a stable, sustainable and efficient energy system? Then now is the time to explore the possibilities of a neighborhood battery to play an active role in the energy transition.

Frequently Asked Questions

How long does a neighborhood battery last?

The life of a neighborhood battery depends on the type of battery technology, usage and maintenance. In general, a modern neighborhood battery lasts between 10 and 15 years. Regular maintenance and smart charge and discharge management can extend the life.

How expensive is a neighborhood battery?

The price varies depending on capacity, technology and installation requirements. For an entire neighborhood, the investment can range from several tens of thousands to several hundred thousand euros. Costs are often shared among participants, making the individual contribution lower.

Do you need a permit for a neighborhood battery?

Yes, a permit is required in most cases. This is related to safety standards, building codes and the impact on the environment. Municipalities and grid operators often have specific site and installation requirements.

Can you participate in a neighborhood battery without solar panels?

Yes, you can. Even without solar panels, you can enjoy the benefits of a community battery, such as lower energy costs and greater grid stability. You then use the collectively stored energy instead of just your own generated power.

Is there a grant available for neighborhood batteries?

In some cases, subsidies or financial schemes are available from the government, province or municipality. These can reduce the investment and make participation more attractive. The availability of these schemes varies by region.

What is the capacity of a neighborhood battery?

The capacity of a neighborhood battery varies widely, depending on the number of connected households and local energy needs. It can range from several hundred kilowatt-hours (kWh) to several megawatt-hours (MWh) of storage capacity.

This post was last updated on: 

30/7/2025

Bob Hermans

Founder & CEO

After being active in the energy market for more than a decade, I decided to found Frax in 2023. With Frax, I want to support installers with smart, plug-and-play battery storage systems that really make a difference. My passion lies in renewable energy and innovation, and I believe that simple, reliable solutions are the key to a future with more efficient energy use.

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