Solar And Battery Systems For Social Housing Under SHEPI 

Thousands of ACT households are to have solar panel and battery systems installed under the federal government’s national Social Housing Energy Performance Initiative (SHEPI).

$12.9 million has been earmarked for the new SHEPI project in the Territory that will see the systems connected to a Virtual Power Plant (VPP), which will also help take pressure off the wider grid.

This latest initiative is the next phase assisting ACT social housing residents with their energy bills; following on from electrification and insulation work completed and funded from SHEPI and the ACT’s Home Energy Support program. Announced in November 2023, that phase saw the Australian Government contributing $7.2 million in funding, and the ACT government providing $28 million.

There’s not much information at this point on the nuts and bolts of the systems to be installed, the nature of the VPP, or the arrangement with tenants. How many homes will receive solar panels and batteries also isn’t really clear.

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) announcement mentions “Up to 7,500 households in the nation’s capital will benefit from bill busting energy upgrades”, and then immediately goes on to mention the $12.9 million for “thousands” of properties to have solar and storage installed. I’m a bit confused about this (and some of the other reporting on it) because:

$12.9 million / 7,500 = $1,720 per property.

The ACT Government must also be kicking in a big chunk of cash if good quality solar and battery storage systems of decent size are to be installed for that many households. Or perhaps it will be far fewer, but still in the “thousands”; also with ACT co-contribution. Either way, any ACT Government financial contribution to the solar and battery project and whether that comes from its initial investment wasn’t mentioned.

What has been mentioned is the ACT Government will provide a greater weighting for products to be sourced for the program that are Australian-made. There’s not a lot of choice there – hello Tindo for solar panels? Good panels, but rather pricey. It will also depend on what is defined as “Australian-made”. How bang-for-buck will be balanced with “Aussie, Aussie, Aussie” will be interesting.

More On SHEPI

The Social Housing Energy Performance Initiative was originally Commonwealth-funded with $300 million to provide energy efficiency upgrades to around 60,000 homes across Australia as part of the Albanese Government’s $1.7 billion Energy Savings Package announced in the 2023-24 Budget.

On 30 November 2024, the Government dropped another $500 million into the pot that will be spent over 4 years from 2025-26; bringing the total Commonwealth funding to $800 million. SHEPI is now expected to reach more than 100,000 social housing properties across Australia and will run until 2029.

Aside from solar power systems and now home batteries, SHEPI activities have included:

• Thermal shell upgrades (e.g. shading and insulation).
• Installation of energy-efficient appliances such as heating, cooling and hot water systems, ovens and cooktops.

So far, the number of homes that have or are to be upgraded in each state:

• ACT:  ~7,500 (? – originally 5,000)
• NSW: Up to 24,000
• NT: ~625
• QLD: ~32,000
• SA: ~3,500
• TAS: ~1,600
• VIC: ~5,000
• WA: ~4,350

… and there must be more to come to bring the total up to the 100k mark.

SHEPI is a co-funding arrangement, with the Commonwealth providing up to 50% of total costs incurred. Commonwealth funding must be used for capital expenditure only and not for any administrative costs. Under the SHEPI expansion, some states and territories will build on their existing programs, while others will launch new pilot programs that will scale and expand over time.