Federal Labor’s $2.3 Billion Home Battery Plan

Federal Labor has revealed a groundbreaking £2.3 billion initiative aimed at significantly increasing the adoption of home batteries across Australia. The Cheaper Home Batteries Program, introduced by the Albanese government, encompasses small businesses, community organisations, and off-grid residences in a national scheme.

The program, which has been eagerly anticipated, will provide rebates to reduce the retail cost of home batteries by approximately one-third, equating to around £370 per kWh. For instance, a Tesla Powerwall 2, priced at £11,900 for 13.5 kWh (excluding delivery and installation), would receive a rebate of £4,995. Similarly, a 5kWh battery would be eligible for a £1,850 rebate.

This rebate offers consumers the opportunity to alleviate the financial burden by enhancing self-consumption of rooftop solar energy and reducing reliance on fluctuating grid electricity prices. Analysis from the energy department suggests that households with existing rooftop solar could save an additional £1,100 annually by incorporating a battery. Meanwhile, households installing solar panels and a battery simultaneously could potentially save up to £2,300 per year, which is up to 90% of a typical family’s electricity bill.

The rebate is accessible to households across all income brackets without means testing, allowing each household to claim the discount for one battery. Moreover, the scheme extends to businesses and community groups, enabling them to claim rebates for systems of up to 50kWh, with a maximum discount of £18,500.

Notably, the 50kWh discount is applicable to systems with a total installed capacity of up to 100 kWh, ensuring flexibility for businesses seeking larger batteries. Additionally, households and businesses that have purchased but not yet installed a battery can still access the rebate by waiting until July 1st to connect it to the grid, provided the installer and battery meet accreditation requirements.

Remarkably, the proposed battery rebate by federal Labor also caters to off-grid homes, despite the prerequisite for VPP compatibility for batteries installed through the program. This inclusivity has been praised by off-grid energy storage experts, highlighting the significance of this initiative in addressing the off-grid sector.

Renew Economy provides a comprehensive overview of federal Labor’s Home Batteries Program, detailing its benefits, eligibility criteria, and operational mechanisms. For further insights into the scheme, click here.

Sophie Vorrath, the editor of One Step Off The Grid and deputy editor of Renew Economy, has been actively reporting on clean energy developments for over a decade.