{"id":91076,"date":"2025-04-07T06:25:16","date_gmt":"2025-04-06T20:55:16","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=91076"},"modified":"2025-04-15T16:08:31","modified_gmt":"2025-04-15T06:38:31","slug":"labor-cheaper-batteries-reactions-mb","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/labor-cheaper-batteries-reactions-mb\/","title":{"rendered":"Labor’s Battery Scheme Hailed As ‘Win-Win For All’"},"content":{"rendered":"

\"Labor<\/p>\n

Labor’s $2.3bn Cheaper Home Batteries Program<\/a> has been broadly welcomed by energy groups as a game changer for power bills, but some voices say the scheme is missing key elements. So what’s the overall verdict?<\/p>\n

After Treasurer Jim Chalmers last Thursday stated plans to accelerate the uptake of household batteries in Australia would be revealed soon<\/a>, the first details were reported on Saturday evening, followed by a torrent of coverage on Sunday.<\/p>\n

We’ve covered\u00a0the initial details on the\u00a0Cheaper Home Batteries Program here<\/a>, with the article updated since it was first published as more information became available, and undertaken our own analysis of potential savings from the scheme<\/a><\/span>. In a nutshell, the up-front cost of a new home battery system<\/a> of 5-50kWh useable capacity will be subsidised at around $372 per kilowatt-hour useable capacity (theoretical maximum and minus any admin fees) from July 1 *if*<\/b> Labor wins the upcoming election.<\/p>\n

Batteries installed between now and then will also be eligible, but cannot be switched on until July 1 or after. Also, a battery must be associated with an existing or new solar system.<\/p>\n

It seems Labor was open to the idea of extending the scheme to non-solar households, but that required putting legislation before Parliament instead of just a change to regulations. And given the current climate (no pun intended), this would have been complicated to say the least. Perhaps this can be tackled down the track if Labor is returned to office, although there’s been no commitment to that I’m aware of.<\/p>\n

So far, the response to Labor’s election pledge has been generally positive.<\/p>\n

Smart Energy Council: A Win-Win For All<\/h2>\n

The Smart Energy Council played a key role in helping Labor shape this policy.<\/p>\n

\u201cThe Cheaper Home Batteries Program is the most important development in consumer energy since Australians first gained access to subsidised solar panels,\u201d Smart Energy Council Chief Executive John Grimes said<\/a>. \u201cIt\u2019s important to understand that this policy will help reduce the power bills of everyone, not just those who can get solar and a battery. Less demand on the energy grid means fewer price peaks, a win win for all.\u201d<\/p><\/blockquote>\n

CEC: Significant And Welcome<\/h2>\n

The Clean Energy Council also welcomed the announcement.<\/p>\n

\u201cNot only is this good news for homeowners, but small businesses and community battery owners stand to save even more with the first 50 kWh of capacity for eligible larger batteries (up to 100 kWh), also covered by the scheme,” said<\/a> the CEC’s Con Hristodoulidis. \u201cWe\u2019re pleased to see the Government using the existing Small-scale Energy Scheme (SRES) to deliver the discount \u2013 with batteries to be added to the scheme retailers and installers already know well, making the process easy.”<\/p><\/blockquote>\n

Australian Energy Council: VPPs Key To Maximising Value<\/h2>\n

The AEC wants to see more focus on Virtual Power Plant (VPP)<\/a> participation through the program. While batteries must be VPP-ready, there’s no requirement to join a program.<\/p>\n

\u201cThere are a significant number of households unable to install solar and batteries, including many vulnerable customers and renters,” said<\/a> AEC Chief Executive, Louisa Kinnear. “Whilst this scheme will provide material benefits for those able to access a battery, encouraging VPP participation would help broaden the benefits of storage and rooftop solar generation and see reduced costs for all.”<\/p><\/blockquote>\n

But even if a battery isn’t connected to a VPP, it still brings broader benefits to the electricity system – although VPP participation can enhance this.<\/p>\n

ACOSS: Good, But Go Further<\/h2>\n

The Australian Council of Social Services (ACOSS) recognises batteries reduce peak energy demand in the evening, putting downward pressure on wholesale electricity prices and network costs – resulting in cheaper energy bills for everyone. It welcomed that the program would be fully funded directly rather than the costs recovered through electricity bills.<\/p>\n

“However, if parties are serious about providing targeted energy bill relief to people with the least, there must also be further investment in measures like thermal efficiency, electric appliances and solar for low-income housing and renters,” said<\/a> ACOSS Acting CEO Edwina MacDonald.<\/p><\/blockquote>\n

Climate Energy Finance: Just What We Need To See<\/h2>\n

“This is exactly the policy support needed to immediately start providing Australian consumers enhanced support to access a lot more distributed energy resources \u2013 in particular residential batteries to support even more rooftop solar,” said Tim Buckley, Director of\u00a0 Climate Energy Finance<\/a>. “This leverages the existing grid transmission and distribution structure, this benefits all electricity consumers and can be deployed fast \u2013 in days, rather than decades, like nuclear!”<\/p><\/blockquote>\n

However, the organisation would have liked to have seen the subsidy extended to apartments.<\/p>\n

Coalition: You Just Wait<\/h2>\n

Leader of the Nationals David Littleproud was interviewed on ABC’s Insiders program yesterday morning and spent close to two minutes<\/a> dodging the original question asked by David Speers, which was:<\/p>\n

“Do you support this sort of idea?”<\/p><\/blockquote>\n

Mr. Littleproud says we need to fix the fundamentals.<\/p>\n

“And that is to flood the market with gas to get Australian gas back into the grid.”<\/p><\/blockquote>\n

Mr. Littleproud said we’ll see the rest of the Coalition’s energy policy in the “coming short period”, which is rumoured to also feature support for residential energy storage.<\/p>\n

\"Anticipation\"<\/p>\n

Aside from that, The Australian<\/a> (paywall) reports a Coalition claim Labor is “cooking the books” on the cost of the scheme, which Labor has denied.\u00a0 Labor says the initiative has been independently assessed and included in the budget, with planned tapering and annual reviews to ensure its effectiveness.<\/p>\n

So, what does SolarQuotes sleuth, blogger and fact-checker Ronald Brakels<\/a> think of what Labor has cooked up? His initial thoughts:<\/p>\n

“It appears to be a well- thought-out scheme compared to the usual state scheme. At this time it seems fairly simple, which will keep compliance costs down. As it stacks with battery subsidies<\/a> such as those in NSW<\/a> and WA<\/a>, everyone with a rooftop suitable for solar in these states should get a battery unless their electricity consumption is unusually low. These states are already good locations, so it’s like a triple battery blessing for them. But even with the subsidy, it will be hard to make batteries pay in VIC and the ACT.”<\/p><\/blockquote>\n

Ronald also believes the program should be expanded.<\/p>\n

“If their goal is to support the grid, when they can change legislation, they should make the scheme available to households and businesses without solar as these batteries are likely to provide more grid support bang per kWh.”<\/p><\/blockquote>\n

As for the potential for major battery system price hikes as demand builds:<\/p>\n

“Some good news is that Australia – due to its relatively low population – is a much smaller part of the international home battery market than it used to be. This means the subsidy – hopefully – will not raise the hardware cost of systems by much.”<\/p><\/blockquote>\n

One reservation Ronald has about the Cheaper Home Batteries Program is the significant drop in the subsidy at the end of every year, in line with how the SRES operates. If the cuts were made every six months instead, that would cushion the impact.<\/p>\n

“Big subsidies followed by big cuts are a problem.”<\/p><\/blockquote>\n

We\u2019ll have more details and commentary on the scheme as further information becomes available. Stay updated by subscribing to the SolarQuotes newsletter<\/a>.<\/p>\n

For more on how much this incentive could potentially save off the cost of a battery, and some potential problems with the program, read our deep-dive explainer here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Labor’s $2.3bn Cheaper Home Batteries Program has been broadly welcomed by energy groups as a game changer for power bills, but some voices say the scheme is missing key elements. 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We\u2019ve run the numbers to calculate the savings from double-dipping, and they're big \u2014 but so are the potential issues. 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After NSW Labor's solar rebate pledge was announced on the weekend, the pressure was on the Berejiklian Government to pull something out of its hat\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"NSW solar and storage loans","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/02\/nsw-liberal-batteries.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/02\/nsw-liberal-batteries.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/02\/nsw-liberal-batteries.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/02\/nsw-liberal-batteries.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2019\/02\/nsw-liberal-batteries.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":91821,"url":"https:\/\/www.solarquotes.com.au\/blog\/home-electrification-labor-mb3173\/","url_meta":{"origin":91076,"position":3},"title":"Post-Election Home Electrification: Solar Batteries And Beyond","author":"Michael Bloch","date":"May 5, 2025","format":false,"excerpt":"Democracy sausages have been devoured, ballots cast and (mostly) counted, and the people have spoken. 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In early April, Federal Labor pledged to slash the cost of buying and installing home batteries under its $2.3 billion Cheaper Home Batteries Program;\u2026","rel":"","context":"In "Battery Storage"","block_context":{"text":"Battery Storage","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/battery-storage\/"},"img":{"alt_text":"A home battery buyer frustrated with misleading rebate ads","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/04\/battery-rebate-advertising.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/04\/battery-rebate-advertising.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/04\/battery-rebate-advertising.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/04\/battery-rebate-advertising.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/04\/battery-rebate-advertising.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":91829,"url":"https:\/\/www.solarquotes.com.au\/blog\/the-best-batteries-to-buy-with-labors-rebate-and-what-youll-save\/","url_meta":{"origin":91076,"position":5},"title":"The Best Batteries To Buy With Labor\u2019s Rebate (And What You\u2019ll Save)","author":"Max Opray","date":"May 6, 2025","format":false,"excerpt":"Labor's election win means its $2.3bn Cheaper Home Batteries Program campaign promise is set to become reality. 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