Abstract With the reduction of Feed-in Tariff support in many countries, self-consumption of distributed energy resources (DERs) is encouraged and energy sharing between neighbouring prosumers is becoming more attractive than the conventional peer-to-grid (P2G) trading. This work investigated a peer-to-peer (P2P) energy sharing method, allowing the surplus DERs to be shared between prosumers in a neighbourhood. An aggregated control of many small-scale batteries was adopted considering the energy requirement of the entire community. This method significantly reduces the amount of electricity fed back into the grid, allowing individual prosumers to obtain economic benefits. Results showed that, with a moderate proportion (e.g. 40%) of customers having individual photovoltaic (PV) systems, P2P energy sharing is able to reduce the energy cost of the community by 30%, compared to P2G trading.