The Yarra Energy Foundation will launch a "first of its kind" community battery in North Fitzroy on Sunday, and will soon turn its attention to a second battery for Richmond.
The North Fitzroy battery, which has been installed on CitiPower-owned land in McKean St, is funded as a three-year trial through a Victorian government initiative.
A Richmond battery is due to be developed separately as part of Federal Labor's $200 million election campaign pledge for 400 batteries across the country.
Community batteries, which are considered complementary to still-expensive household and large-scale utility batteries, can assist in enabling more solar input and uptake in the network, which was built for the single-source generation and one-way delivery of major power plants.
They are considered to offer increased reliability of supply to users and can be used to participate in spot market energy trading - generating profits by selling power when prices are highest.
The four-cabinet North Fitzroy unit will have the capacity to service up to 200 local households during peak evening demand.
It will be integrated into the broader electricity grid and is intended to essentially enable residents in the relevant subnetwork to access stored solar power whether or not they have rooftop panels.
The continuing operation of the battery after the trial ends is dependent on a sustainable business case and community support.