What is Energy Storage as a Service?
Epping Community Battery

Energy storage as a Service (ESaaS) allows multiple customers to share energy from a community battery. Community batteries store extra solar energy when the sun is shining and feed that energy back to customers when they need it – often after the sun has gone down. 

Let’s understand how ESaaS works, who benefits, and why shared storage is helping to build a smarter, more affordable energy system for everyone.

How ESaaS helps with excess solar

The problem: Midday solar spikes

On sunny days, rooftop panels across a neighbourhood can generate more electricity than homes are using. That extra energy gets sent back to the grid – often at a time when electricity demand is low. The grid struggles to absorb all the extra solar energy. This can lead to clean energy going to waste, voltage problems and limits on how much solar power people can export (curtailment).

What is solar curtailment?

Solar curtailment refers to the reduction or limitation of electricity generation from a solar system. It avoids overloading the system and helps maintain grid stability.

excess solar against demand

The solution: Community storage (ESaaS)

During the midday spike, instead of flooding all that extra solar out to the grid, a community battery stores it locally. In the evening, when there is peak demand and solar generation has dropped off, the stored energy is released back to the community. This helps reduce peak demand, decreases reliance on fossil fuels, and supports more solar in the system.

community battery graphic

How does ESaaS work?

  • ESaaS is not a subscription or add-on product. You don’t sign up and pay a fee. You simply select an ESaaS pricing plan from a participating energy retailer.
  • Ausgrid funds community batteries through its regulated role as a distribution network provider.
  • Customers on ESaaS pay less because the energy they use from the battery doesn’t need to travel as far as energy that comes from large generators like coal or solar farms, making it cheaper. 
  • ESaaS allows local customers to make the most of local solar, and solar is one of the cheapest forms of electricity currently available. 

What are the benefits of ESaaS?

More value
Solar owners get more value from the energy they generate.
More accessible
Non-solar and solar households gain access to clean, local, and renewable energy.
More reliable
Everyone benefits as the grid becomes more reliable and efficient, reducing the need for expensive upgrades.

Myth: ESaaS means giving up control of your energy use.

Reality: Not at all. You still choose when and how you use electricity—nothing changes about your appliances, your solar system, or your habits. ESaaS works quietly in the background, storing excess solar energy and releasing it when the grid needs support. It simply adds cleaner, locally stored power into the mix during peak times, helping to stabilise prices and reduce emissions.

How ESaaS compares to other options

Not everyone can install solar or afford a battery, but that doesn’t mean they can’t access the benefits of clean, affordable energy. Here's how ESaaS compares to other renewable energy options:

 Solar Only  Home Battery  ESaaS through a Community Battery
Upfront cost Varies $4,500–$13,000 Varies $6,000–$11,000 None to you
Backup protection None Yes, depending on system Can’t draw from the battery during an outage
Ownership Household owns it Household owns it Owned by network provider
Maintenance Homeowner maintains it Homeowner maintains it Maintained by Ausgrid
Best for... Homeowners after daytime savings Solar owners looking to store solar energy to use later Anyone (accessible for those with solar or no solar, homeowners and renters)
Impact on grid Moderate, can add pressure to the grid if solar is not being used Strong, lowers household load by maximising household generated energy Very strong, stabilises the grid, helps regulate voltage on the network 

ESaaS in action

Everyone uses energy differently, but most of us hit peak demand around the same time: in the evening, when the sun is down, which puts added pressure on the grid.

ESaaS uses stored solar from your community battery can be used to support local homes during peak times, even if you don’t have panels or a battery. This means:

  • Solar-only homes don’t lose their excess generation to the wider grid — it can be stored and shared locally. 
  • Homes with no solar can benefit from clean energy stored during the day.
  • The whole neighbourhood can enjoy more stable prices and a cleaner grid.