A neighborhood battery is the solution for communities that want to manage energy smartly and sustainably. In more and more Dutch neighborhoods, people are looking at the benefits of a communal battery where generated solar power can be temporarily stored and distributed. Especially now that solar panels are more popular than ever, there is a growing need for solutions to smartly store surplus electricity. But how does a neighborhood battery work exactly? What are the costs and options if you want to buy one yourself or introduce it in your community? And how can households jointly benefit from shared energy? In this article, we explain everything.

What is a neighborhood battery?

A neighborhood battery is a large energy storage battery that is locally placed, for example in a street or district, to temporarily store sustainable energy. Think of energy that is generated during the day with solar panels but is only needed in the evening. Instead of feeding this power back to the grid, it is stored in a communal battery and later distributed among residents.

The biggest advantages of neighborhood batteries:

• Smart storage of solar energy during peak production

• Shared use: multiple households benefit from one battery

• Relief of the power grid in busy neighborhoods

• More control over your own power consumption

• Saving on energy costs

More and more energy hubs and cooperatives are including neighborhood batteries in their plans. Not only due to sustainability but also because of the economic advantage.

What are the costs of a neighborhood battery?

The neighborhood battery costs depend on the capacity, type of battery, and installation. For a small community setup, you should consider €30,000 to €100,000. That sounds like a lot, but the costs are often shared by residents or financed through an energy cooperative or subsidy.

Factors determining the cost:

• Capacity (how many kWh can be stored)

• Type of battery (such as lithium-ion or saltwater batteries)

• Installation and maintenance costs

• Smart software for energy distribution

• Security and grid connection

If you are considering installing a neighborhood battery, it's wise to do this together with neighbors and join an existing energy hub community initiative.

How does a neighborhood battery work?

Many people wonder: how does a neighborhood battery work? In short: the battery stores surplus electricity, usually from solar panels, and returns it when needed. Residents can see through smart meters or apps how much energy is available and when they can benefit the most.

Here's how the process works:

1. Generation of solar energy during the day

2. Storage in the neighborhood battery during overproduction

3. Distribution of energy in the evening or at peak times

4. Smart alignment with the power grid to prevent overloading

Sharing a home battery in a community requires good agreements on distribution and costs, often organized through a cooperative or energy deal.

What is the capacity of a neighborhood battery?

The average neighborhood battery capacity is between 50 and 500 kWh. For a row of ten houses with solar panels, 100 to 200 kWh is often sufficient to absorb peak loads. The more houses participate, the larger the required battery capacity.

When choosing a battery, consider:

• Future expansion (more houses = more capacity needed)

• Different user profiles in the neighborhood

• Collaboration with grid operators

An important advantage is that with a neighborhood battery, you prevent solar energy from being lost at busy times. Especially in combination with battery neighborhood projects emerging in new developments, this benefits everyone.

Buying a neighborhood battery: what are the options?

Do you want to buy a neighborhood battery yourself or invest in one with your community? There are various routes. Some suppliers offer complete solutions including placement, maintenance, and software. There are also platforms for battery sharing, where residents jointly own the battery.

When purchasing, consider:

• Licenses and subsidies (e.g., through the municipality or RVO)

• Type of collaboration: cooperative or private

• Possibility to connect with solar panels

• Support for smart control (energy hub neighborhood)

A good first step is organizing a residents' meeting and collectively exploring the best solution. In some cases, a container battery can be used as a temporary or flexible solution.

Frequently asked questions about neighborhood batteries

What is the difference between a neighborhood battery and a home battery?
A home battery is for individual use; a neighborhood battery is shared with multiple households.

Can you go completely off-grid with a neighborhood battery?
In theory, it's possible, but in practice, remaining connected to the grid is necessary for reliability and peak consumption.

Is it more advantageous than feeding back to the grid?
That depends on energy prices and the net metering policy, but in the long term, it often results in savings and more reliability.

How long does a neighborhood battery last?
On average, 10 to 15 years, depending on the type and usage intensity.

What are the best locations for a neighborhood battery?
Preferably centrally located in a neighborhood, safely placed in an easily accessible space.

Do you need a permit for placement?
Often yes. Especially for larger systems or if the battery is placed outdoors.

Can you participate without solar panels?
Yes, in some energy hubs that's possible. You then don't benefit as much from direct generation.

What are the disadvantages?
Complex agreements on distribution, dependence on technology, and sometimes high start-up costs.

Why are neighborhood batteries relevant for the energy transition?

Neighborhood batteries are part of a broader trend: decentralization of energy. By storing and sharing energy locally, we relieve the overburdened power grid and increase our own independence. The rise of neighborhood energy hub projects in cities and towns is a logical consequence of this. Through these hubs, other forms of energy (such as heat storage or electric mobility) can be cleverly linked to shared batteries. This creates a complete local energy system where residents take control.