In a major boost to Australia’s clean-energy ambitions, Melbourne-based battery innovator Relectrify has secured A$25 million in funding from the Australian Renewable Energy Agency (ARENA) to advance deployment of its commercial-scale battery energy storage system (BESS), the “AC1”. (Renew Economy) The grant enables Relectrify to roll out up to 100 megawatt-hours (MWh) of AC1 systems targeting commercial and industrial and small “front-of-meter” markets. (Mirage News)
The AC1 platform is billed as a “world-first” in battery architecture because it generates grid-compliant AC power directly from battery cells, without a conventional inverter. (Renew Economy) The funding reflects confidence in innovation emerging locally to meet global energy-storage demand—and signals actionable opportunity for Australia’s manufacturing and energy-transition sectors.
What the AC1 Funding Means for Industry & Australia
The Relectrify-ARENA partnership sends a clear message to industry, investors and policymakers. Below are key implications that professional readers should watch:
- Manufacturing Upside: The grant supports not just deployment but manufacturing capability enhancement. Relectrify can scale the AC1 product and deepen cell-level control tech, which is core to its value proposition.
- Grid & Commercial Impact: By targeting commercial/industrial (C&I) users and front-of-meter applications, the AC1 aims to bridge the so-called “missing middle” of Australia’s energy transition—beyond large-scale grid batteries and residential storage. (Mirage News)
- Cost & Lifespan Benefits: According to reports, the AC1’s architecture replaces or bypasses standard inverters and reduces cell‐level degradation. Relectrify claims up to ~20 per cent more usable energy over lifetime compared to conventional designs. (Renew Economy)
- Investment Attraction: Government backing via ARENA helps de-risk early‐stage deployment for private investors. That can catalyse further capital flows into Australian energy storage and manufacturing.
- Global Relevance: As grid systems worldwide grapple with renewable integration and storage, a commercially proven “inverter-less” battery built in Australia has export potential.
For professionals in manufacturing, energy systems, project finance and policy, this development presents an actionable lens into how emerging battery technologies are stepping from lab to commercial scale—and how local industry can plug into that momentum.
How the AC1 Works & Deployment Timeline
The technical approach and rollout plan for the AC1 deserve close attention. Here’s a closer look at how the system functions and what’s coming.
Key design features
- Relectrify’s architecture controls each of nearly 4,000 individual battery cells in the system. According to CEO Jeff Renaud, cell-level monitoring enables optimisation of performance, safety and reliability. (Mirage News)
- Instead of converting from DC (battery) to AC (grid) via a separate inverter, the AC1 uses its management software to output AC directly from the cells. This reduces component count and potential system losses. (Renew Economy)
- The company intends manufacturing flexibility: the AC1 “packs” use off-the-shelf cells and hardware, layered with Relectrify’s proprietary operating system. This approach helps manage costs while focusing innovation where value lies. (Renew Economy)
Deployment plan
- The ARENA funding enables Relectrify to deploy up to 100 MWh of AC1 systems across commercial/industrial and small front-of-meter sites. (Mirage News)
- According to industry reports, deliveries are expected to begin around April next year (2026) for initial orders placed soon. (Renew Economy)
- The project also includes a comprehensive knowledge-sharing programme. Real-world operating data, case studies and reference sites will help validate performance and support future uptake. (Mirage News)
What this means for stakeholders
- For C&I energy users: the AC1 offers a storage option that may plug directly into facility energy systems, reduce reliance on inverters, and potentially reduce lifecycle costs.
- For system integrators and EPCs: deploying a new architecture means updating design, installation and maintenance practices—early movers may gain a competitive advantage.
- For investors: the knowledge-sharing requirement and demonstration sites build the data foundation for risk assessment.
- For policymakers: scaling storage models like this can support grid stability, integrate renewables and mitigate peaks—key to decarbonisation pathways.
Deployment Milestones & Impact Overview
| Milestone | Detail | Significance |
|---|---|---|
| Grant Award | A$25 million from ARENA to Relectrify for AC1 deployment. (Renew Economy) | Validates technology, enables scale-up. |
| Target Volume | Up to 100 MWh of AC1 systems to be deployed. (Mirage News) | Significant capacity for C&I rather than just pilot scale. |
| Architecture Innovation | Cell-level control, inverter-less AC output. (Renew Economy) | Differentiator in cost, performance and manufacturing. |
| Market Focus | Commercial, industrial, small front-of-meter. (Renew Economy) | Addresses a market segment often overlooked. |
| Timeline | Initial deliveries expected around April 2026. (Renew Economy) | Near-term commercialisation rather than distant concept. |
Strategic Implications & Next Steps for Industry
This funding win by Relectrify is more than a singular good news story—it offers guidance on actionable next steps for stakeholders in manufacturing, energy systems, finance and policy.
For manufacturers and suppliers
- Review supply-chain readiness for battery cell packs, control electronics and domestic assembly or integration. Relectrify’s model uses off-the-shelf cells but custom management—there may be opportunities for component suppliers or partners.
- Evaluate how your production lines or capability might adapt to support storage modules, rather than just renewables.
- Anticipate standards and certification compliance. Relectrify has previously worked to achieve IEC certifications for its commercial product. (Renew Economy)
For energy project developers and C&I users
- Explore battery storage use-cases beyond rooftop solar tie-ins. The AC1 is being positioned to work without needing on-site solar, meaning standalone storage deployment is possible. (Renew Economy)
- Engage with financiers and insurers early. The demonstration phase backed by ARENA will generate performance data vital for risk modelling.
- Plan for grid-services participation (e.g., demand response, small-scale aggregation) as storage volumes increase and regulatory frameworks evolve.
For investors and financiers
- Track milestone deliveries and site performance data from Relectrify’s deployments. Demonstrated cost savings and reliability will influence investor appetite.
- Understand business models: Relectrify emphasises project IRR (internal rate of return) rather than just upfront capex—so consider lifecycle value rather than capital cost alone. (Renew Economy)
- Consider export potential: As innovation matures, the AC1 architecture could be deployed overseas, creating scalable business opportunities.
For policymakers and energy system planners
- Recognise that innovative storage technologies like AC1 can change the economics of grid integration and renewables ramp-up.
- Ensure regulatory frameworks allow commercial and industrial users to access revenue streams from storage (grid services, wholesale participation, small-generation aggregation).
- Use the knowledge-sharing outputs from this project to inform policy and best-practice guidelines for battery deployment, safety standards and grid integration.
By aligning with these next steps, stakeholders can position themselves to capitalise on the shift driven by Relectrify’s AC1 deployment and the broader battery-storage wave in Australia.
Trending FAQ
Q: What does the AC1 do that existing batteries cannot?
A: The AC1’s core innovation rests on controlling each battery cell individually and delivering AC power directly, bypassing a separate inverter. This enables higher energy output (claims around 20% or more over life) and lower degradation compared to conventional architectures. (Renew Economy)
Q: Is the AC1 technology available now?
A: The product is commercially launched, with initial orders expected ahead of deliveries commencing around April 2026. (Renew Economy)
Q: Who are the target customers?
A: The primary focus is on commercial and industrial businesses and small front-of-meter sites (rather than large utility-scale or residential). This fills a market gap often termed the “missing middle”. (Mirage News)
Q: What role does the ARENA funding play?
A: The A$25 million funding from ARENA supports the deployment of up to 100 MWh of AC1 systems and includes a knowledge-sharing programme, which reduces market risk and accelerates commercial uptake. (Mirage News)
Q: What should stakeholders do next?
A: – Manufacturers should evaluate supply-chain participation.
– C&I users and developers should explore storage integration and grid-services potential.
– Investors should monitor performance data and business-model metrics.
– Policymakers should prepare frameworks to support storage deployment and revenue streams.
Q: How does this affect Australia’s clean-energy transition?
A: By supporting a home-grown battery manufacturing and storage innovation, the funding win enhances Australian capability, addresses energy flexibility needs and may help export tomorrow’s storage solutions globally.
The Relectrify AC1 project marks both a technological leap and a strategic pivot point. For any professional engaged in energy, manufacturing or infrastructure, the next 12-24 months will be pivotal to watch.
