Phase Shift: New Battery? Great! Now Switch It Off Until July

A battery with a 'do not use' sign, in reference to a rule in Labor's proposed battery rebate.Credit where it’s due: Labor’s proposed home battery rebate is the right policy at the right time — for the most part.

Batteries are still expensive, and for many solar owners they remain just out of reach. So a rebate of $3,700 off a 10 kWh battery, administered through the existing Small-scale Renewable Energy Scheme (SRES), is exactly what’s needed to get them over the line.

Using the SRES framework means the rollout can be fast, with minimal bureaucracy. It’s also retroactive — so if you install a battery between now and July 1, and Labor is re-elected, you’ll still be eligible for the rebate.

That retroactivity should soften the usual effect of everyone freezing their wallets for three months while they wait for a rebate to kick in.

Should.

In reality, most people will still wait. They don’t want to cashflow thousands of dollars for a rebate that isn’t locked in. And they definitely don’t want to risk missing out over some technicality in the paperwork. So while the intent is good, the market will likely stall anyway.

A Battery You Aren’t Allowed To Use

There was, however, one takeaway from an industry briefing that really made my jaw drop: batteries installed from now to July 1 will also be eligible (assuming Labor is returned to power), but cannot be switched on until July 1.

Sorry — what?

You can pay for a battery. You can get it installed. You can have it wired up to your switchboard. You can connect it to the grid. But you’re not allowed to switch it on?

That’s not just bureaucratic overreach. It’s actively stupid.

The entire point of this rebate is to help households save money and support the grid. So the faster batteries are installed and operating, the better. Why make people wait? What possible good is served by forcing energy storage systems to sit idle for three months?

It’s a classic example of process trumping reality. Some legal or political technicality, probably dreamed up in a Canberra meeting room, has ended up overriding basic common sense. If the paperwork’s not final, fine. But let people use the gear they’ve paid for.

An advertisement promoting Labor's battery rebate.

Labor is promoting its rebate as a way to reduce energy bills — once owners are finally allowed to turn the batteries on, that is.

Over To You, Peter

And it’s not like the Coalition’s policy is any better. At the time of writing, Opposition Leader Peter Dutton hasn’t announced a battery rebate of his own, perhaps because he’s too busy with his imaginary nuclear plans. C’mon Peter, here’s a great opportunity to craft a better battery rebate than Albo’s with minimal effort: just photocopy Labor’s proposal, but Tippex out the ‘keep it switched off’ clause.

I won’t hold my breath.

So we’re stuck with a policy that’s mostly great… except for the part where it tells you to install expensive, money-saving, grid-improving, emissions-reducing technology — and then not use it for 3 months.

Honestly, why stop there? Maybe we should increase the heat pump rebate but ban hot showers until spring.

Let’s hope common sense flicks the switch back on before July 1.

For more on Labor’s proposed battery rebate, read over what we know about the scheme so far, and what kind of potential savings are on offer.

To calculate what it could shave off the cost of your preferred battery, try our new federal battery rebate calculator.

About Finn Peacock

I'm a Chartered Electrical Engineer, Solar and Energy Efficiency nut, dad, and the founder of SolarQuotes.com.au. I started SolarQuotes in 2009 and the SolarQuotes blog in 2013 with the belief that it’s more important to be truthful and objective than popular. My last "real job" was working for the CSIRO in their renewable energy division. Since 2009, I’ve helped over 800,000 Aussies get quotes for solar from installers I trust. Read my full bio.

Comments

  1. We’re looking at getting a battery, but are holding off – well, we have one booked, but have stipulated a requirement that the installer has noted in the contract.

    The WA rebate only provides for 20,000 batteries. There appears to have be a large interest, so we have no idea if we’ll ‘make the cut’, which is our stipulation for the battery. No rebate = no battery.

    We’re looking at a 13.3kW (Alpha Smile) battery for $9000 installed. (not spending a lot as this is out first battery and not sure if it’s for us). I’m curious how the rebates work. Does the installer submit the p/work and they receive the $ or do we pay full amount and then claim the rebates afterwards? The latter option concerns me, as if we install the battery, apply for the WA rebate and then told no spots left…

    Then the Labour rebate was announced, but only if the are re-elected.

    For the battery we’re looking at, $5000 (state) + $4921 (federal), we’d be paid $921 to install the battery??

    • Les in Adelaide says

      As per this previous article . . .
      https://www.solarquotes.com.au/blog/labor-home-batteries-mb/ . . .
      “the rebate is proposed at $372 per kilowatt-hour useable capacity (theoretical maximum), *minus* any admin fees and charges.”

      The installer / company selling you a battery does it like they do solar PV.
      Not sure what the admin charges will be per kwh of battery, but it should not be a big impost.

    • Judith Ann Renner says

      I just had two Alpha ESS batteries installed by Green. Super quick and efficient job and only cost $15,120 for 3 phase. I can’t complain for 27kwh of storage. Haven’t used anything from the grid since it was installed and got the huge rebate from NSW which made it affordable. Well worth while the investment. Judy Renner

    • Richard Noakes says

      I purchased 18 solar panels and a 5kw transformer and one battery about one year ago, installed for $9,999 with my existing 24 old solar panels removed and disposed of, within that price range too from MLEC
      I purchased another 2 batteries from MLEC a few months ago, installed – I was thinking of paying up to $5,000 for one additional battery, but I was offered 1 battery for $3,500 and 2 for $6,000 so 2 seemed like the best deal and I went that way, from MLEC so now I have 3 batteries installed and working fine.
      Batteries came topped up, so it did not take much to bring them up to speed and I run my home off my solar panels during the day, when the excess goes back to the Grid and I get roughly $30 month refund and I’ve turned off Gas and run electricity only and the rest goes back to charging the 3 batteries up to 100% full and I find that with 2 of us, I use 60% at night and have 40% in reserve, overall cost of $16,000 and save about $5,000 each year = my Rates, Insurance, etc

  2. Dear Finn, you’re thinking much too logically and sensibly ie. exactly as trained engineer should !!

    However, the “do not switch on until July” “feature” of the proposed program is, simply, brilliant and could only have been born from within a very devious and very very cynical politician’s mind – all those people who had already contracted to install a battery before the policy announcement will all now be weighing up whether having to wait until July before they can switch on their batteries is worse than getting $4,000 (or whatever their 30% rebate works out to) if they vote Labor.

    One suspects a not insignificant number will decide that $4,000 (or maybe a bit less or maybe a lot more) is worth waiting for and decide that it’s sufficient moolah to buy their vote for Labor …. since they reckon that neither Labor or LNP are worth voting for and they were going to submit a donkey vote come election day anyway.

    A very devious and cynical mind is definitely behind the policy !!

    • Anthony Bennett says

      Hi Sas,

      It could also be that the scheme needs a sworn in minister to sign it off (not in caretaker mode) and beginning in the new financial year is simply making the accountants and legislative requirements are kept in order.

      Not everything is a conspiracy, but using the existing STC scheme with a change in regulation is a pragmatic and efficient approach.

      • Hi Anthony,

        You may have a point re the need for a Minister not in caretaker mode needing to sign the proposed changes into legal effect. But (like Finn ?) I’m unconvinced about the 1 July date. After all, barring some obscure clause in the STC scheme that no one has yet uncovered, one would have thought it possible to have the scheme start as soon as Labour is sworn into Government (days after the election on May 3) ie. as soon as the relevant newly sworn-in Minister signs off on it.

        PS.
        I worked in the public service (State) before retiring 10 years ago and had more than casual dealings with very senior people who worked as ministerial liaison officers or who provided advice to ministers. Their stories of ministerial officers and Ministers tell of EVERYTHING that politicians and their staff do is ALWAYS with one eye on what the media & electorate may think. So I’m pretty sure that this proposed scheme is unlikely to have been handled any differently, albeit at the Federal level.

    • I agree why would anyone (Politician) put such a fine detail clause into such a policy????

  3. Peter Johnston says

    A bit like when I put solar on and everything is working fine but had to wait a month until the inspector came and ok’d it and switch it on !!

  4. Offgrid are not getting anything. VPP. Clearly it is for the grid to function.

    To line up an installation right now involves a long wait for an available contractor. Our overlord wants to double their workload of travelling to the property 2 times to comply. My installer told to comply they won’t be running conduits and cables to the far away meter box for AC coupling. The government will enjoy more fuel excise as well as more GST from the contractors and those servicing their cars

    No rational explanation for me paying upfront thousands of dollars for a battery that might be useful some time in the bright future under the bright government. Taken the shortage of contractors and their load being doubled to achieve the same technical outcome, I will be lucky to be prioritised some time Sep-Dec 2025, because they will be busy securing new contracts and having no excuse not to do entire installation. And what incentive would they have to finish the job if they have already been paid?

    • Anthony Bennett says

      Hi Gate,

      Off grid systems are going to get cheaper batteries too, it’s been stated explicitly.

      Remote area systems use a lot of diesel if they don’t have adequate solar and battery so they’re definitely being included in the CBS, as abating diesel use is a primary concern of the STC scheme, and always has been.

      • Thank you for the correction Anthony. Can you point to any document from Labour outlining all that proposal? All I can find in Internet are 3-d party accounts. The only way I could argue with my installer was “Solar Quotes says …”

        • Anthony Bennett says

          Hi Gate,

          I watched and we have a transcript of the webinar hosted by Labor on the announcement. I’ve had Michael Bloch check back on it.

          Chris Bowen: “This will apply to on and off grid, so no distinction between on and off grid applies to everyone. The vast majority of course will be on grid, but it applies equally to off grid.”

          And Bowen’s departmental advisor: “There’s some questions around how does that apply to off grid systems in the scheme already there’s already separate installations of standards and things for off-grid installations. They’re just going to have to be realistic about what that means off grid because it’s clearly not going to, clearly a separate standalone in the middle of nowhere can’t connect to a grid. And so that has to be, we have to have practical standards for that scenario, but we definitely don’t want to exclude off grid because it off grid batteries defer diesel use and that’s a really important thing to do for climate change. “

          • I am not after the off-grid specifically. As many I want to read the entire proposal T&C 😉

    • Erik Christiansen says

      Gate, whether you cable to that meter box & grid-connect is surely decided by your budget? The contractor does what you pay for.

      Off-grid solar saved me over ¼ million $ to bring the grid several km. Alternatively, it saves running a noisy polluting generator 24/7, or having only intermittent power. I figure it’s not about the handouts – rural life is about the lifestyle. And batteries provide resilience, on-grid or off.

      OK, I’m “not getting anything” as the rainclouds pass over, but 27 kW of panels can just power the 2.3 kW HWS in murky overcast after they pass. The battery fills the gap, and is key to not needing a gas or kerosene fridge, and candles.

      But I sympathise with tradie sourcing issues. My owner-build during Covid was a right pain, including digging a dispersal field by hand (at age 67), and barrowing in 6 m³ of rock, as no-one could come. It’s character-building, they claim.

      No matter. It all beats the pants off living in town, I reckon.

  5. Francesco Pagliarella says

    Hello Finn. What is the situation for those who already previously installed a battery? Will they be eligible for a subsidy if they wish to add more battery storage capacity to their home system? Regards. Francesco

  6. Agree the policy is nonsensical as it stands. Something nobody has mentioned is the question of warranty. Who will want to purchase and install a battery, if the warranty clock starts to tick while the battery is sitting unused?

    • Jock Cheetham says

      It’s not nonsensical. The scheme starts on July 1st because they have to get into government again, do the paperwork and fire the starters pistol, so to speak. So the delay on switching on is a way to avoid no installation until July 1. It’s quite flexible. I suppose it could be retrospective but that throws up issues especially if they don’t get in.

  7. Question – I installed one in NSW in January will I be eligible retroactively? Also if I upgrade with more 8kwh modules on a sigenergy will I be eligible?

  8. I’m having an extra couple of modules added to my battery next week. I’m not dicking about waiting for a discount, i dont even know if those extra modules can be “switched off” until July 1 and the rest of the battery still be useable anyway – i doubt it, That’s not exactly a feature in demand until this point is it?.

    Typical political bulldust really isn’t it?

  9. I’m in this exact position – 3x Suntank batteries due for installation this coming Tuesday, along with panels and the inverter. I don’t want to delay the install so I’m still getting it done but what a joke that the battery is going to sit there idle for months and Labor might not win anyway. I cannot think of a single reason for this aspect of the policy, absolute nonsense

    • That is also three months taken off your Battery warranty if you cannot use the battery for three months. Is Labour going to give that warranty period back because they said you cannot use the battery for three months?

      • Anthony Bennett says

        Hi Kevin,

        It was Labour under Keating who introduced the ACCC in 1995 and seeing as Australian Consumer Law is quite broad I don’t think 3 months is going to radically change anything.

  10. Paul Whittlesey says

    I’m usually on board with your views but you’re gilding the lily a fair bit.
    We won’t know the election result until the first week of. May. If a battery was ordered at that time, it would probably take a month to be installed.
    That would leave a maximum of 3 weeks (not months) with it sitting idle. Not ideal, but not what you stated.

  11. Hi. I have a Sungrow SBR battery installed already. What do you think the chance is of getting any additional expansion modules covered under the SRES scheme? Thanks

  12. In case there ever is another rebate for Qld batteries, a question arises:

    One year old 13.5 panels, 10kW Sungrow inverter…
    Options:
    1. Add batteries plus inverter and AC couple or
    2. Replace inverter with Hybrid type and batteries and D couple.

    I recall some concerns about limited throughput on hybrid inverter or all current going via the inverter so even no grid power at all in case of inverter failure.

    Be interested in expert comments

    • Erik Christiansen says

      Marty, My brother is on-grid, connected as in Victron’s “Grid parallel topology with MPPT solar charge controller” in their Datasheet_MultiPlus-II-inverter-charger-EN.pdf i.e.

      Grid -> Inverter_In :: Inverter_Out -> Loads <- PV inverters (ABB in his case)
      | |
      25 kWh Batteries PV panels
      |
      MPPTs
      |
      PV panels

      One 5 kVA inverter passes 50 A from the grid. He has two, so 23 kW limit.
      Need more grid? Add more in parallel.
      He went from 14 to 25 kWh of batteries by just connecting them to the busbar, after matching SoC. It's been running for 5 years now.

      Need more solar? Add MPPTs & DC couple. Check isolator & DC wiring capacity. (The Victrons can't gridform over 1:1, so AC expansion is no go.)

      I use that topology off-grid. Works fine.

      • Erik Christiansen says

        Argh! The dodgy site software spuriously edits out whitespace.
        The diagram took a little while to work up but has been submitted here…

        The DC coupled solar provides off-grid "Black Start" in the event of overnight battery depletion – not needed if on-grid.

        My brother exports at 10 kW with this topology.

        • Anthony Bennett says

          Thanks Eric,

          It will be interesting to know if they have a way to make this flexible export compliant or have an additional custoimer consumption meter for the Victron to know what’s coming and going.

          • Erik Christiansen says

            Oops, I had omitted the 100 A smart Current Transformer at the grid end. It has added electronics for a serial digital link to the Cerbo GX system controller, providing (fixed) export limiting, and reporting of exports and imports. There’s perhaps 1 kWh of imports daily, as the system continuously checks the water level out on the grid.

            A requirement to retrofit a 5 year old system for dynamic limiting seems unlikely, but a new install would need it. As mine is off-grid, I haven’t investigated what the options for that would be … or how long it’ll take, if not there yet. A daemon running under VenusOS, receiving network control messages over the internet, should be able to tweak the current export limit in real time. (But what protocol is used for remote rooftop solar control?)

            (Glossary: VenusOS is a Linux variant, and a daemon is an always-awake task handler, responding to each request.)

            The grid is still the cheapest battery, but charging it is becoming complicated.

    • We have a recent 25kw sungrow hybrid inverter installed about a year ago, it comes with a changeover/bypass switch so in the event you do have an inverter issue you flick the switch and you’re back in regular grid power. Search for broad or changeover on here and you’ll likely find the article.

    • Bret Busby in Armadale, Western Australia says

      I am no expert (“Expert = a drip under pressure”) – I am simply a lay person, but, regarding the text “I recall some concerns about limited throughput on hybrid inverter or all current going via the inverter so even no grid power at all in case of inverter failure.”, the simple answer is to get an A/C bypass switch installed.

      I have a (replaced under warranty, but still not working as it should) hybrid inverter, and, whilst the initial installed A/C bypass switch was inadequate, and, should never have been installed, due to the capacity being significantly inadequate, when the first inverter failed, the A/C bypass switch was needed, to permit use of grid electricity, in the absence of any electricity going through the failed inverter.

      So, if getting a hybrid inverter that provides backup power, every installation should have an A/C bypass switch, to provide for inverter failure. And, the A/C bypass switch should be rated at the same capacity as the electricity grid connection fuse.

  13. Chris Macaulay says

    Hi,
    I’ve just had my new system installed, which includes a 16 kWh battery. The installer switched on the battery for a few minutes ( with my permission and agreement) to check that the battery was functioning correctly. After only a few minutes the battery was switched off. My question is, have I jeopardised my rebate?

  14. Paul Whittlesey says

    The “big delay” is not what it seems.
    We won’t have the election result until the first week in May.
    If the battery was ordered then, it’s reasonable to assume delivery, installation and setup would take at least a month (probably more).
    This leaves a maximum of a few weeks with the system idle – not 3 months.

  15. My battery upgrade is happening tomorrow, theoretically it would come under this scheme. But i am not worrying about it. I want my increased battery size before winter fully starts, otherwise i will have to use grid power.

    • Same as you, our upgrade is next week. To get the theoretical rebate/discount, we would likely have to turn off the entire battery until Jul 1, unless someone can tell me how to turn off “only 2 bricks” in a stack of 6.

  16. Paul Whittlesey says

    Can it be assumed you ordered the upgrade before the rebate was annouced?

  17. I’m surprised the Coalition hasn’t supported the proposed battery program and made a version of their own, especially if it mirrors the STCs for solar panel installations. Wouldn’t they want more STCs, given their commitment to fast-tracking high-emissions projects like gas? Wouldn’t they need more STCS to cover an increase in high emission gas project’s? My understanding of STCs is that certain companies need these STCS to offset there emissions when reporting quarterly, so they aren’t slugged with a big fine

  18. David Ryder says

    I don’t think anyone will be ordering a battery until the election outcome is known early in May. Then allowing for the usual delay between ordering and installation there would not be many new batteries set up ready to go in the six weeks between the declaration of the election and the 1st July.
    So while not being able to turn them on until July 1st is silly, very few people would be affected.
    Finn is the Fox ESS battery system available in Australia and if so is it one of the better ones?

  19. Eric Ozgo says

    I’m now a grumpy old man, but at almost 70 years of age, I’ve been through quite a lot. The one that stands out for me is finding out that anything the government gives you will cost you more!
    The classic must be the private health insurance rebate, as it’s been in for decades and our premiums just go up and up! The first homeowner grants just see blatant price increases the next day. Every single rebate or grant that I’ve seen in my time has never worked in favour of the average wage earner.
    To see how stupid this all is, who would buy a battery now? A total fool?
    So the businesses are doing a roaring trade? They may as well shut up shop until after the election. I’m completely against grants and rebates of any sort.

    • In 70 years you could figure out how the system works. The government collects taxes and prints money (which is also a tax), and thereafter redistributes that money to encourage those who behave as the government wants. It can be helping the grid with your battery, or voting for the incumbent, or something else.

      The sad story is that these days ‘policies’ are so transactional that the system stands no chance against nations with 5 years plans and 25 years planning horizons.
      Let’s legislate 5% house buying deposit today, and the next government will deal with another subprime crisis some day later. In the end the savers will bail out everything, that is why everyone is better off living in credit.

  20. We did this last week! Read the announcement and Solar Quotes very helpful explanation of the details but went ahead with the install of a 24kW Sigen battery system (with 3P gateway + Sig 7kW EVAC charger) as planned, but currently have it switched off, at least until 4th May to see the election result, and then until 1st July if Labour win. It’s definitely the most expensive paperweight I’ve ever bought! Installer was great about it all. Will just need to pay a $250 call out fee for final sign off. Figured the risk was worth it compared to the potential $8k federal rebate on top of the $3k state kick back. I’m a little dirty about missed potential earnings through feed in through Amber for the 2.5months.

    It’s like they care more about my vote than they do the environment or my cost of living!

  21. Maree Burns says

    I live in country Victoria & getting the Inspector out to check after 2nd battery installation took a LONG time. Shortage of Inspectors & needed a few jobs in the country to inspect before coming.
    Just as well I turned it on the day after the electrician left – I would have missed out on a lot of money.
    Battery(s) the way to go. Look at GloBird deals.

    Maree

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