Plan to Make Home Batteries More Affordable
The Albanese Government has just announced a massive new incentive for home solar batteries should it be re-elected at the upcoming Federal Election.
The pledge is to reduce the cost of purchasing and installing new home batteries by around 30% under a $2.3 billion initiative. This plan, central to their re-election campaign, includes the Cheaper Home Batteries Program, which aims to make “Virtual Power Plant (VPP)-ready” battery systems more accessible. The program will apply to new or existing solar panel setups, and is designed so home owners only get one bite of the pie. The bigger the better is their message.
Key Details of the Home Batteries Program:
- The program will begin in July if Labor wins the upcoming federal election.
- Batteries ranging from 5 kWh to 50 kWh capacity will be eligible for support.
- It will be delivered through the Small-scale Renewable Energy Scheme (SRES), which already provides subsidies for rooftop solar systems.
- The discount rate will decrease gradually over time, with the full subsidy expected to phase out by 2030.
- Small businesses and community facilities can also access the incentive.
Labor emphasises that this plan will work alongside state-based battery incentives. However, the exact interaction with subsidies from governments like NSW and WA remains unclear.
Labor’s Prime Minister, Anthony Albanese, highlighted the cost-of-living relief the program will provide, stating, “This is good for power bills and good for the environment.” Minister for Climate Change and Energy, Chris Bowen, added, “Households and businesses with batteries can store solar energy, helping to lower bills consistently.”
How the Subsidy Works:
- The program will apply to eligible battery systems (5 kWh – 50 kWh usable capacity), with a maximum of 100 kWh systems allowed.
- Batteries must be VPP-capable, though participation in a VPP is not required.
- The subsidy will be around $350 per usable kWh of capacity, although this is subject to reductions and administrative fees.
- Homeowners who already have a battery system can install an additional one to benefit from the subsidy.
- The program will be available nationwide, with no cap on the number of eligible households or businesses.
- The government will buy the certificates under the SRES, ensuring no increase in power prices.
Existing solar owners are encouraged to install batteries, with an added benefit for those who live in states with their own battery incentives (such as NSW and WA). Lucky us!
Potential Savings from the Program:
Labor estimates the subsidy could save up to $4,000 on a typical 11.5 kWh battery system. With over 4 million solar systems installed in Australia, many homeowners are eager to add storage to complement their solar energy and increase energy independence. The Cheaper Home Batteries Program aims to make this a reality for even more Australians.
This means that by stacking this new scheme on top of the NSW state-based battery incentive, homeowners are now more likely to be able to afford and finally benefit from these energy savings. If purchasing a 24kWh battery and combine both incentives there will be a discount of around $12,120 so the savings are significant! This program will significantly change the way Australians store and use solar energy, making clean energy solutions more accessible. It also opens up the ability to install larger batteries so home owners can make even more money trading their energy with a wholesale energy retailer or by joining a VPP. Speak to us for more details on this.
For more clarity around what this means for your install or to get your questions answered email us at [email protected] or phone 02 9453 1485.
