Australian PM vows $1.4bn home battery subsidy if re-elected

Australia’s Anthony Albanese government has pledged an AUD 2.3 billion residential, virtual power plant (VPP)-ready, battery subsidy scheme if re-elected in May. The planned initiative could incentivize up to a million battery installations by 2030.

Though batteries need to be VPP enabled there will be no obligation of VPP participation and the subsidy can be utilized in addition to existing state and territory battery subsidies.

Existing owners of batteries can add to their system under the scheme, to as many properties as they may own, but all batteries must be attached to new or existing rooftop solar systems.

The CHBP subsidy offers an installation discount of 30%, or approximately AUD 4,000, and is scheduled to kick in from July 1, 2025, however batteries being installed from April 6, 2025 will be eligible as long as they’re not turned on before July 1.

Funded through the Small-scale Renewable Energy Scheme, which already offers subsidies for rooftop solar, small businesses and community facilities will also be able to access the subsidy, with support for up to 50 kWh of batteries sized up to 100 kWh eligible.

Prime Minister Anthony Albanese said, with a battery, families can store free energy generated on a sunny day when no-one’s home and use it when they need to.

“Every household that installs a battery drives down energy prices for everyone else because it reduces peak demand.”

SunWiz Managing Director Warwick Johnston said while there are over four million solar power installations in Australia, less than 10% of them host a battery system.

“More batteries means more resilience, bill savings, and fewer blackouts. A battery subsidy that’s swiftly implemented will enhance Australia’s utilization of its greatest resource: the sun.”

Climate Energy Finance Director Tim Buckley said the CHBP is exactly the policy needed to immediately support consumer access to distributed energy resources – in particular residential batteries, to support even more rooftop solar.

“This leverages the existing grid transmission and distribution structure, this benefits all electricity consumers and can be deployed fast – in days, rather than decades, like nuclear. We trust this also includes batteries for apartments so everyone can benefit from the solar revolution.”

Clean Energy Council Distributed Energy General Manager Con Hristodoulidis said rooftop solar has become a staple of the modern Australian home, alongside the Hills Hoist and the Victa lawnmower.

“Rooftop solar is providing energy reliability and value for money – Aussie households lead the world in rooftop solar uptake, with over four million installations and 25 GW of installed capacity.”

Smart Energy Council Chief Executive John Grimes said the CHBP is the most important development in consumer energy since Australians first gained access to subsidised solar panels.

“Ten million Australians are already producing solar power, now they can store it. Australians can take control of their power bills and when and how they produce and use electricity. This literally gives power back to Australians. Less demand on the energy grid means fewer price peaks, a win-win, for all.”

From pv magazine Australia.