Unlocking the Opportunity for Community Batteries in the UK: Key Insights from the VEST Energy Webinar

‍

Our Co-CEO and Head of Growth (Europe), James Allston, recently participated as a panelist in VEST Energy's webinar exploring community battery opportunities in the UK market.

‍

The discussion brought together industry experts to address the challenges and opportunities facing community energy organisations as they look to expand beyond solar into battery storage solutions.

• James Allston - Co-CEO, Orkestra Energy
• Alex Howard - Flexibility Markets Team Lead, UK Power Networks
• Maurine Taylor - Hirst Welfare Centre
• Aaron Lally - VEST Energy

‍

Throughout the discussion on community battery opportunities in the UK, James emphasised embedded network models with behind-the-meter bill savings as the most practical path forward, while highlighting the need for simplified approaches and better tariff design to overcome the complexity barriers that prevent widespread adoption.

‍

Watch the full panel discussion below.

‍

‍

‍

Have a commercial solar project coming up or interested in exploring community batteries further? Book a one-on-one demo to speak to an expert in your region.

Key Takeaways

‍

1. Education and Simplification Are Critical

‍

The biggest barrier to community battery adoption is complexity.

‍

Community organisations often lack the technical expertise to navigate energy storage systems, and even young people in these communities have limited knowledge of battery technology.

‍

The key to widespread adoption is making the technology more accessible and providing trusted partnerships to guide organisations through the process.

‍

2. Three Viable Community Battery Models

‍

The panel identified three distinct approaches to community batteries, with embedded network models emerging as the most practical and scalable solution. This contrasts with more complex street-level battery sharing models that face significant technical and regulatory challenges.

‍

1. The "Myth" Model - Batteries installed next to LV transformers to serve entire streets (noting significant challenges with this approach)
2. Utility-Scale Community Model - Community ownership of larger generation assets, similar to wind farm cooperatives
3. Embedded Network Model - The most practical approach for communities, involving batteries within private networks like sports centres or community facilities

‍

"The final model, which is the one that I'm really interested in, and I think the one that's really broadly applicable at a community level... is where you've got some kind of embedded network or community facility, and then you're installing a battery within those private networks." - James Allston

‍

‍

3. Behind-the-Meter Focus Delivers Immediate Value

‍

While front-of-meter flexibility markets offer additional revenue opportunities, the primary value for community batteries lies in behind-the-meter bill savings. This approach provides clearer, more predictable returns and avoids the complexity of wholesale market participation that requires specialised intermediaries.

‍

"We really see that as like all those opportunities front of meter as being the cream on the cake, not the cake itself. The big opportunity for communities is looking at bill savings but understanding how do they control a battery effectively to get those bill savings."

‍

‍

3. Active Management vs. Passive Generation

‍

Unlike solar panels that generate value simply by being exposed to sunlight, batteries require sophisticated control systems to optimise charging and discharging patterns. This fundamental difference means community organisations need either in-house expertise or reliable technology partners to maximise their battery investments.

‍

Orkestra's feasibility modelling software helps organisations understand exactly how their battery systems need to operate to create value before they commit to deployment.

‍

"A solar panel is what I would describe as a passive value creating asset... A battery on the other hand is an asset that must be actively managed. It's really what organisations need to be thinking about when they're stepping into the battery world: what is the battery being controlled to do?"

‍

‍

4. Tariff Optimisation Holds the Key to Scale

‍

A key theme throughout James's contributions was the critical role of tariff design in enabling community battery success:

‍

"I think it is all about tariffs for me... making those price signals clearer is going to lead to much better outcomes for the UK in terms of its grid."

‍

He advocated for more experimental tariff structures, citing successful examples like "solar soaker tariffs' in Australia where you've got low prices or low off-peak rates which are in the middle of the day.

‍

Clearer price signals through innovative tariff structures could naturally drive battery adoption without requiring complex grant programs or market interventions.

‍

‍

5. Public-Private Partnerships Need Careful Balance

‍

While government funding through initiatives like Great British Energy's £8 billion commitment can accelerate deployment, sustainable models must be economically viable without excessive grant dependency.

‍

The focus should be on creating market conditions that support long-term viability rather than short-term cash injections.

‍

‍

6. Carbon Impact and Value Stacking

‍

When discussing carbon benefits, James explained that batteries enable carbon reduction in two key ways:

• Enabling more solar deployment by managing export constraints
• Time-shifting clean energy from low-carbon midday generation to evening peaks when gas generation typically increases

‍

He noted: "There's no direct carbon benefit for batteries, right? It's not like a solar system which is directly displacing generation. It's about moving generation around or being an enabler to create more savings."

‍

‍

Final Recommendations

‍

1. Keep it Simple: Complexity is the biggest hurdle to community batteries in the UK. Keeping it simple is the way to go, and stay really focused on the problem you're trying to solve.
2. Focus on Tariffs: Tariffs are the key. There's a big place for distributors to optimise tariff structures, rather than relying on complex flexibility markets.

‍

Orkestra enables users to quickly and easily model the feasibility of potential commercial solar and battery projects, including community batteries. Software like Orkestra focuses on explaining value by enabling you to analyse with accuracy, and then articulate, how the project will create the most value.

‍

‍

Looking Forward

‍

Are community batteries the way forward? If we can manage and implement them effectively, they could be a great addition to the mix! As Great British Energy's chief executive has said, successful local power deployment will involve "solar, battery, and intelligent control systems operating with the grid."

‍

James's insights, backed by Orkestra's extensive modeling capabilities and real-world project experience, provide a roadmap for community energy organisations looking to navigate the transition from solar-only projects to comprehensive energy storage solutions.

‍

Orkestra's feasibility modelling software helps businesses size and value commercial and industrial energy projects, including community battery applications. Founded four years ago with a strong presence in Australia and New Zealand, Orkestra expanded into Europe six months ago and is rapidly growing in the UK and German markets.

‍

Want to explore community battery opportunities for your organisation?

‍

‍Start your free trial of Orkestra today to model and optimize your energy storage projects with utility-grade accuracy.