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

What is a neighborhood battery?

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

The main advantages of neighborhood batteries:

• Smart storage of solar energy during peak production

• Shared usage: multiple households benefit from one battery

• Relief for the power grid in busy neighborhoods

• More control over your own energy consumption

• Savings on energy costs

More and more energy hubs and energy cooperatives are incorporating neighborhood batteries into their plans. Not just for sustainability, but also for economic advantage.

What are the costs of a neighborhood battery?

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

Factors determining the costs:

• 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

Those considering placing a neighborhood battery would do well to do this jointly with neighbors and join an existing energy hub neighborhood initiative.

How does a neighborhood battery work?

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

This is 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 peak moments

4. Smart coordination with the power grid to prevent overload

Sharing a home battery within a neighborhood setting requires good agreements on distribution and costs, often arranged through a cooperative or energy deal.

What is the capacity of a neighborhood battery?

The average neighborhood battery capacity ranges between 50 and 500 kWh. For a row of ten houses with solar panels, 100 to 200 kWh is often sufficient to handle peak load. 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 a neighborhood battery prevents solar energy from being wasted during 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 neighborhood? Then there are different routes. Some suppliers offer complete solutions including installation, maintenance, and software. There are also platforms for battery sharing, where residents collectively own the battery.

When purchasing, consider:

• Licenses and subsidies (for example, through the municipality or RVO)

• Cooperative or private collaboration

• Possibility to connect with solar panels

• Support for smart control (energy hub neighborhood)

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

Frequently Asked Questions about neighborhood batteries

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

Can you go completely off-grid with a neighborhood battery?
Theoretically, yes, but in practice, connection to the grid remains necessary for security and peak consumption.

Is it more advantageous than supplying back to the grid?
That depends on energy prices and refund schemes, but in the long term, it often results in savings and more certainty.

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

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

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

Can you participate without solar panels?
Yes, in some energy hubs this is possible. You then benefit less from direct generation, however.

What are the disadvantages?
Complex agreements on distribution, reliance on technology, and sometimes high startup costs.

Why are neighborhood batteries relevant for the energy transition?

Neighborhood batteries are part of a broader trend: decentralization of energy. By storing energy locally and sharing it smartly, we relieve the overburdened energy 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 energy forms (such as heat storage or electric mobility) can also be smartly linked to shared batteries. This creates a complete local energy system where residents take control themselves.