Chalmers: Labor’s Home Battery Election Sweetener Imminent

Labor's home battery incentive

Whether it will be a home battery rebate, subsidy, loan or a combination Labor will put in front of voters ahead of the federal election on May 3 will soon be revealed says Treasurer Jim Chalmers.

First reported by RenewEconomy, the Treasurer’s comments were made in a pre-recorded video message for the Clean Energy Investor Forum held in Sydney yesterday.

“We’ll have more to say in coming days about our plans to accelerate the uptake of household batteries so even more Australians can benefit from cheaper, cleaner, reliable energy,” Chalmers reportedly said.

What Home Battery Advocates Want

As far as I’m aware, Treasurer Chalmers didn’t use the term “rebate” or “subsidy” in his message – but that’s what many will be hoping for rather than just a no- or low-interest loan program.

CEC – $6,500 Battery Rebate Please

The Clean Energy Council has been advocating for a national rebate of up to $6,500 per household for quite a while. The CEC again called on the major parties to support this in response to Budget 2025-26 – which contained nothing relating to home electrification. However, there was still $1.5 billion of measures yet to be announced at that point.

“Four million Australians have rooftop solar, but only around 180,000 are doubling their savings with access to a home battery,” said CEC CEO Kane Thornton. “That means that 95.5 per cent of solar households, already saving $1500 on average on their power bills thanks to their panels, could be saving even more through home energy storage”

…and it’s not just solar owners that will benefit as home batteries provide broader benefits; including enhancing grid stability and exerting downward pressure on wholesale power prices during peak times.

SEC – Supercharge Solar Success

The Smart Energy Council wants to see an initiative similar to the national solar rebate, in fact incorporating it under the Small-scale Renewable Energy Scheme (SRES) underpinning that incentive.

“Now, the federal government has a golden opportunity to supercharge this success by expanding the SRES to include batteries,” said SEC Chief Executive John Grimes. “If we get this right, it’ll be a game-changer. Households will be able to store their solar energy and use it when they need it most, saving thousands for millions.”

Solar Citizens – Batteries For All!

Well, not quite. But grassroots advocacy group Solar Citizens wants to see a target of one million batteries by 2030 adopted, with incentives on offer for both free-standing homes and apartments – whether they have rooftop solar panels or not.

“The more home batteries there are in the energy system, we can ease the pressure that failing, old coal and expensive gas plants are putting on our energy systems, and reduce costs at peak evening times when energy prices are currently highest,” said Solar Citizens CEO Heidi Douglas.

A recent survey carried out by the group found nearly all respondents with rooftop solar power systems would like to also acquire a home battery – but 70% say they can’t afford one.

The major parties are also under pressure from the Greens’ recently unveiled electrification plan pledging grants of up to $5,000 for batteries and low-interest loans of up to $10,000 for households, and grants of up to $10,000 and low-interest loans of up to $50,000 for small businesses.

What The Solar Industry Doesn’t Want

Mr. Grimes’ “get it right” comment is really important. Because to get it wrong could be disastrous.

In the past, Australia’s home solar industry has seen some state battery rebates and other solar incentives announced with a significant delay between announcement and implementation.

This period can have a chilling effect on sales, referred to as a “valley of death”, and threatens the existence of businesses that may not be able to survive the famine long enough to partake in the feast. And a sudden rush through pent-up demand when an incentive finally launches doesn’t do anyone any favours – it can become a battlefield for installers and customers alike. Meanwhile, those who have put off installing solar to wait for the incentive miss out on the electricity bill savings they may have otherwise had, which can be considerable.

What About The Coalition?

After Labor announces what it has brewed up for residential batteries, the Coalition may match it, better it – or otherwise. Or maybe it will blink and announce whatever they have planned first. The Coalition is well aware Australian solar owners (and those who want to be) are a powerful voting force. And with the election still looking to be a very tight race at this stage, every vote will really count.

We’ll keep you posted on all pre-election developments in this space – sign up for the SolarQuotes weekly newsletter for the latest news, straight to your inbox.

About Michael Bloch

Michael caught the solar power bug after purchasing components to cobble together a small off-grid PV system in 2008. He's been reporting on Australian and international solar energy news ever since.

Comments

  1. Hopefully this incentive will also include bi-directional EV chargers (batteries on wheels). I heard that Enphase is doing limited release in Australia by May this year of their long awaited bi-directional charger.

    • Anthony Bennett says

      Hi Allan,

      Historically speaking Enphase has been synonymous with “long awaited” so please don’t hold your breath.

  2. Per Michael’s article on the 18th of March, 28% of solar installs included a battery in the last half of 2024 (36% in October), so it doesn’t look like large subsidies need to happen to increase battery penetration to 50% or higher.

    IMO if subsidies are offered they should be biased to where they offer grid services such as feed in to the evening peak rather than just reduced household demand. A $6,500 subsidy as advocated by the CEC seems ridiculous – much better if it was similar to the STC scheme for Solar Panels – uncapped volume but reducing over time.

    We’ll see what gets announced..

  3. I would love to know how the CEC calculates $1,500 per year bill reduction for solar.

    I don’t know anyone who has received anywhere near this, nor does my own usage reflect anywhere near a $1,500/yr reduction in power costs.

    • Anthony Bennett says

      Hi Steve,

      It’s all about time of use.

      If you’re using power in the daytime, solar can largely eliminate bills, so shifting consumption to the daytime makes sense.

      If you’re using power at night then solar will make little difference without a battery to shift energy.

    • I save $2K per year from Solar alone.

      8kW of panels, 6kW Inverter

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