Labor Commits $2.3 Billion to Fund Household Battery Subsidies
The policy offers Australian homeowners a 30 percent discount.
If re-elected, Labor has promised $2.3 billion (US$1.4 billion) to subsidize household batteries starting in July.
This policy gives Australian homeowners a 30 percent discount on virtual power plant-ready battery systems (5–50 kWh) when they are installed alongside new or existing solar panels.
While one in three Australian homes have solar panels, only one in 40 have battery storage. Household batteries help absorb excess rooftop solar energy during the day for use outside daylight hours.
Energy Minister Chris Bowen stated, “The sun doesn’t always shine, but having batteries in households and businesses allows us to keep solar energy available and consistently lower energy bills.”
Albanese mentioned at a rally in Brisbane on April 4 that every household installing a battery contributes to lowering energy prices for everyone by reducing peak demand.
“The current issue is that the upfront cost of a battery is too high for many people. We intend to address that,” he added.
The subsidy amount will be reviewed annually, and the discount is applicable to only one battery per household.
Support for Household Batteries
Some key MPs who may potentially influence a hung parliament have previously endorsed incentives for household batteries.
Related Stories
Battery programs have been implemented at the state level in Australia, and Labor indicated that this proposed policy would complement them, potentially offering greater discounts.
Con Hristodoulidis, the general manager of distributed energy at the Clean Energy Council, stated that a national battery program would allow more households to enhance their energy independence and save on their bills.
“This is positive news for everyone’s finances and the long-term sustainability of Australia’s modern energy system, built on the most cost-effective renewable energy supported by storage,” Hristodoulidis remarked.
Policy Criticism
Opposition Leader Peter Dutton remarked on April 4 that while he supports batteries, they are quite expensive.
He believes that Labor will need to raise power prices to offset the cost of batteries for individuals.
“I think people will see through it,” he expressed.
“Under a re-elected Albanese government, electricity prices are set to rise. I don’t believe Australians can afford that,” he added.
Nationals Leader David Littleproud mentioned on ABC Insiders that not everyone can afford a battery in the near future.
He stated that Australia must increase gas supply to the market to restore gas to the grid and mentioned that the complete Coalition energy policy will be released soon.
