Treasurer Jim Chalmers’ Budget 2025–26 was a fizzer for Australians hoping for home battery and other electrification incentives. But the show isn’t over yet.
Here’s some of what *was* in the Budget, all of it pre-announced before the big night.
National Licensing For Electrical Trades
To work as an electrical contractor in Australia, a state-specific license is needed and requirements vary by jurisdiction. A licensed sparkie in South Australia for example can’t just pick up tools in New South Wales and get to work. They have to apply for a separate licence and pay additional fees.
Announced on Sunday, the Albanese Government says it wants to design a national licensing scheme for electrical trades people. In Budget 2025–26, $900 million has been earmarked for the National Productivity Fund to drive National Competition Policy (NCP) framework reforms including this.
“This reform is good for workers, good for businesses and will make our economy more productive and competitive,” said Treasurer Chalmers. “By removing unnecessary barriers, this scheme will encourage highly skilled electrical workers to go where they are needed most in the industry, like in housing construction and clean energy.”
SolarQuotes’ veteran solar installer, Anthony Bennett, thinks this is a winner too.
“Harmonising electrical licences is a great step toward providing better competition, more flexibility and greater productivity,” he said. “Having worked for a company based in Adelaide with a branch in NSW, I could have been ‘shipped in’ to cover someone on leave if it weren’t for conflicting licence obligations.”
Anthony also mentioned for solar in particular, the technical knowledge needed to successfully commission a system can be very specific to a brand of inverter.
“Solar is complex and those with a specialist subset of skills operating across borders will help everyone.”
The Australian Refrigeration Council also welcomed the news, but wants to see Refrigeration and Air Conditioning (RAC) technicians with restricted electrical licences also included in the reform.
Fun related fact: In most Australian jurisdictions, you don’t just need an electrical license to install solar, but to sell it too. SolarQuotes founder Finn Peacock published a deep-dive into licensing for solar retailers in Australia a while back, and licensing details are included on the installer review pages of businesses part of the SQ network.
More Power Bill Rebates
$1.8 billion has been budgeted for another couple of rounds of power bill rebates. Between July and the end of this year, two rebates of $75 each will be credited directly to the electricity accounts of all households and approximately a million small businesses.
The rebates have been criticised by some, among them, Tasmanian Independent Senator Jacqui Lambie says it should be means-tested. ACT Independent Senator David Pocock pointed out the $6.8 billion invested in power bill rebates during Labor’s reign could have subsidised comprehensive electrification projects in 600 suburbs across Australia.
Extra Cash For The CEFC
Announced in January and confirmed in Budget 2025–26 was an additional $2 billion investment for the Clean Energy Finance Corporation to support households and businesses make the shift to renewables. The funding has been allocated to the CEFC General Portfolio, which invests across multiple sectors – including small-scale asset finance.
Other Budget Bits
Among other renewables-related items in Budget 2025–26:
- $750 million for green metals.
- $500 million for clean energy technology manufacturing capabilities.
- $250 million for low carbon liquid fuels.
- $2 billion for Green Aluminium Production Credits.
- $1 billion for the Green Iron Investment Fund.
- $13.7 billion in hydrogen and critical minerals production tax incentives.
Home Electrification Election Heat Is On
While nothing specific was in Budget 2025–26 for home electrification, there is $1.5 billion of yet-to-be-announced measures in Labor’s election war chest; so there might be something there.
Labor and the Coalition seem to still be playing chicken on announcing rumoured solar battery and/or other home electrification support. This is where the extra cash for the CEFC may also come into play in the form of loans, as the CEFC does not give out direct grants or subsidies.
The Clean Energy Council has been pushing for a national home battery rebate scheme of up to $6,500 per household for some time, and since Budget Night the CEC has again called on the major parties to support this initiative.
Monthly CPI released yesterday:
– Electricity down 13.2% year on year
– Gas up 6.3% year on year
Even without switching subsidies, it’s making more and more sense to get off the gas – especially if you’ve got solar.
And on the battery front, per Michael’s article from the 18th we’re already seeing a quarter of solar systems being installed with batteries, and this will only increase as battery costs keep coming down. Not sure we need more subsidies?
Solar Attachment Rates
2021: 7%
2022: 10%
2023: 15%
2024: 26%
South Australia electricity price up 26% last year..
Gas price increase 7%.
Hi Tom,
Do you have a source for the numbers?
Cheers
A battery subsidy is still needed to drive sales volume higher faster. Home battery prices haven’t budged for 5yrs while grid batteries have dropped by 60+% in 2yrs. That’s a direct impact of the sales volumes.
While SQ might describe the Budget as a fizzer, from what I read, and saw myself, that’s the general response by most Australians – don’t care, there’s nothing useful in it.
The biggest response referenced was the Opposition’s. According to (at least) one piece Albanese was so concerned about this that it was said he would probably declare the election on Friday.
And what broke in the news today? The election is now on and the Budget is yesterday’s news. The Opposition’s Budget response? No longer important.