Federal Labor has unveiled a $2.3 billion plan to dramatically boost home battery uptake in Australia, through a national scheme that takes in small business, community groups and off-grid homes.
The Cheaper Home Batteries Program, officially announced by the Albanese government on Sunday morning, caps off a week of growing speculation over what has become one of the most hotly anticipated policies in years.
Read more here: “Huge win:” Federal Labor unveils $2.3bn plan to slash home battery costs
The rebate will cut the retail cost of a home battery by roughly one-third, calculated at $370/kWh.
This means that in the case of a Tesla Powerwall 2, which is 13.5 kWh at a current price of $A11,900 (inlcuding GST, not including delivery or installation), the rebate would be $4,995. At the lower end of the scale a 5kWh battery would get a rebate of $1,850 of the ticket price.
For consumers, the proposed battery rebate holds significant potential to ease cost-of-living pressure, by maximising rooftop solar self-consumption and minimising exposure to volatile grid electricity prices.
According to energy department analysis, a household with existing rooftop solar could cut a further $1,100 from its annual power bill by adding a battery, while a home adding solar and a battery in one go could save as much as $2,300 a year – up to 90 per cent of a typical family electricity bill.
The rebate is not means tested, so any household in any income bracket is eligible to access the SRES for a discounted battery, but only once per household.
And while it’s called the Cheaper Home Batteries Program, the rebate is open to businesses and community groups, too. In this case, the rebate can be claimed for up to a maximum of 50kWh – or a maximum discount of $18,500.
Importantly, the 50kWh discount can be claimed for systems with a total installed size of up to 100 kWh, so as not to restrict business to a battery that is too small.
Another important note is that households and businesses that have invested in, but not yet installed, a battery can access the rebate, too – as long as they wait until July 01 to switch it on and connect up to the grid. In this case, the installer would need to be accredited with Solar Accreditation Australia and the battery CEC accredited and VPP compatible.
Impressively, federal Labor’s proposed battery rebate would also be open to off-grid homes – despite the requirement for batteries installed through the scheme to have virtual power plant compatibility (more on that later).
As off-grid energy storage expert and one-time Solar Insiders podcast guest Nic Stone wrote on LinkedIn on Sunday, this is an important detail.
“For the first time, this style of rebate addresses the off grid sector of the market … [with] provision for subsidies up to 50kWh of usable storage in a system up to 100kWh usable in size,” Stone says.
“It’s a good time to build a decent Aussie made off grid storage and PV system, and a good time to ease that diesel gen set into a gentle retirement. … [And] welcome to the 21st Century of clean power generation and storage.”
To read Renew Economy’s full breakdown of what federal Labor’s Home Batteries Program is offering, how it will work, who it will benefit – and who it won’t, click here.
Sophie is editor of One Step Off The Grid and deputy editor of its sister site, Renew Economy. Sophie has been writing about clean energy for more than a decade.
