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Alongside the concern for environmental sustainability, the concept of Circular Economy, a term for an economic system designed to regenerate itself, has gained momentum. Circularity finds full expression in Local Energy Communities (LEC), a newly emerging setup wherein the local energy needs of a community are met independently, through the choice of shared solutions for energy production from renewable sources. Erstwhile the use of stationary energy storage systems for self-consumption optimization, load management, peak shaving, backup power and ancillary services, would foster the value of these Local Energy Communities. In this paper, we design a techno-economic analysis to assess the impact of the usage of Second-life Batteries for increasing the energy self-independence of those communities. A cost-minimization approach with technical and economic constraints is used for the analysis and is applied to a use case of Italy. This paper assesses the benefits that a Local Energy Community can entail while considering self-consumption maximization of PV generation, load shifting and grid balancing needs, while addressing the problem of high storage costs through the exploitation of second-life electric vehicles (EV) batteries, adding an extra layer for circularity. Scenarios related to maximizing the self-consumption of photovoltaic generation and demand side management are designed considering four different LEC technology configurations. The results confirm LEC viability, showing lower energy bills for each scenario and greater benefits coupling a solar generation system with a storage solution. • Development of a techno-economic tool for Local Energy Community. • A feasibility analysis of Second Life Batteries is performed for the energy community. • Increased economic and energy savings are observed with second life batteries. • Second life of batteries are economically feasible for the community at 150€/MWH. [ABSTRACT FROM AUTHOR]