The cost of installing a new home battery will be discounted by 30 per cent under a new energy pitch from the federal Labor Party.
Prime Minister Anthony Albanese will make the $2.3 billion pledge in a major campaign speech to be delivered in Brisbane on Sunday.
Labor argues that while one in three Australian households have solar panels, only one in 40 have a battery, making batteries the next significant opportunity to push down household power bills and reduce reliance on power from the grid.
Household batteries can soak up excess power generated by solar panels during the day and feed it back into households during the evening when panels are no longer useful.
Labor expects the discount to help see 1 million new batteries installed by 2030, with the policy to be in place from July 2025.
Household batteries can store excess power generated by solar panels during the day. (ABC News: John Gunn)
The discounts will be applied to any “virtual power plant-ready battery systems” installed alongside new or existing solar panels.
The level of the subsidy will be reviewed annually, and is expected to decline as the cost of batteries declines.
The scheme is capped at one battery per household, and batteries of 5-50kWh are eligible for support.
Labor is framing the policy primarily as a cost-of-living measure, arguing it will cut $4,000 from the cost of a typical battery (to go alongside existing panels), and up to $1,100 on the average annual power bill.
Mr Albanese said it would be a substantial saving for households.
“Labor’s number one priority is delivering cost-of-living relief. That’s why we want to make sure Australians have access to cheaper, cleaner energy,” he said.
“This is good for power bills and good for the environment. Only Labor has a plan to build Australia’s future.”
The missing link in the energy system
Renewable energy advocates have been calling for some time for new battery incentives for households, to further capitalise on the widespread take-up of solar panels.
More than 4 million Australian households have solar panels on their roofs.
Groups such as the Smart Energy Council have argued incentives would help households manage the substantial up-front costs, given the cost of many batteries exceeds $10,000.
And they argue batteries will put significant downward pressure on household power bills.
Key crossbenchers, who could have increased influence in a hung parliament, have also been significant supporters of battery incentives.
Helen Haines introduced a private member’s bill to incentivise battery uptake two years ago, while Allegra Spender has called for zero-interest loans.
Some state governments have run their own rebate schemes in the past, such as Queensland’s battery booster, which offered rebates of up to $4,000.
Labor said its policy would work alongside any state schemes, meaning greater discounts might be available.
Energy Minister Chris Bowen said greater battery uptake was important to Australia hitting its renewable targets.
“The sun doesn’t always shine — but households and businesses having batteries means we can keep solar energy on tap and keep energy bills down consistently,” he said.
The Coalition has previously indicated it is open to incentives for household batteries, suggesting it will have “more to say” before the election.
