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Home Solar Batteries

What It Means for Aussie Households

admin by admin
April 7, 2025
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What It Means for Aussie Households
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In the lead-up to the upcoming federal election, Labor has unveiled a bold proposal aimed at revolutionising the way Australians consume and store energy. Their $2.3 billion Cheaper Home Batteries Program is a significant step towards making battery energy storage more affordable and accessible for everyday Australians. Under this plan, households will receive a rebate to offset the cost of installing a solar battery system, effectively lowering energy bills and helping households contribute to Australia’s ambitious net-zero targets.

We’ll take a closer look at how this proposed battery rebate plan will benefit Australian households, how it aligns with our national energy goals, and how you can make the most of this opportunity if you’re looking to upgrade your home’s energy system.

What the proposed battery rebate plan means for Australian households

At its core, Labor’s plan seeks to make solar battery storage more accessible to Australians. The rebate will cover 30% of the cost of installing a home battery system, with the average Australian home saving around $4,000 on the cost of installation. This isn’t just about making solar panels more efficient—it’s about enabling households to store excess energy generated during the day and use it when the sun isn’t shining.

For many Australians already using solar energy, the biggest hurdle has been the lack of storage. Without a battery, any surplus solar power generated during the day often goes to waste, as it’s not possible to store it for later use. With the introduction of this rebate, households will have the opportunity to store excess solar energy, leading to lower energy bills and improved energy security.

The financial benefits are significant, with households potentially saving up to $1,100 a year on electricity bills by adding battery storage to their existing solar systems. For new solar installations with battery storage, that number jumps to around $2,300 in savings annually. Over time, these savings could add up, making the initial investment in solar panels and batteries more than worth it.

Chris Bowen promotes Cheaper Home Batteries
Chris Bowen promotes Cheaper Home Batteries. Source: Facebook

Chris Bown from the Smart Energy Council announced this morning that the following can be expected should Labor retain government:

  • Batteries installed between now and July 1 will be eligible for the subsidy, provided Labor is re-elected, but they won’t be activated until July 1.
  • The subsidy applies to eligible battery systems with a usable capacity of 5kWh to 50kWh, though systems up to 100kWh can be installed.
  • Batteries must be VPP-capable, but participation in a VPP is not required.
  • The subsidy will be approximately $372 per usable kilowatt-hour of capacity (theoretical maximum), minus any admin fees and charges. Similar to the SRES, the subsidy will decrease over time.
  • You can “double-dip,” meaning this subsidy can be combined with state battery incentives.
  • Owners of existing battery systems can install an additional system and still be eligible.
  • The battery must be connected to a new or existing solar system. Extending the subsidy to homes without solar would require a change in legislation, not just regulations.
  • For property owners with multiple locations, a system can be installed at each property.
  • There is no cap on the number of subsidies available.
  • The Government will purchase the certificates generated under the SRES, ensuring no upward pressure on power prices.

Strengthening the energy grid and supporting net zero targets

While the rebate plan is primarily focused on households, it’s important to consider the broader impact on Australia’s energy grid and long-term sustainability goals. As more and more households adopt solar energy systems with battery storage, the cumulative effect will be a decentralised energy grid that is less reliant on fossil fuels and more resilient to demand fluctuations.

Battery storage plays a critical role in stabilising the energy grid. During the day, solar panels generate more energy than most households need, especially on sunny days. By storing this surplus energy in batteries, homes can reduce their reliance on the grid during peak hours, when energy demand is highest. This reduces the need for expensive, non-renewable peaking power plants and helps keep energy prices down.

On a larger scale, the battery rebate plan supports Australia’s transition to renewable energy and the goal of achieving net zero emissions by 2050. By encouraging the widespread adoption of battery storage, Labor is effectively creating a cleaner, more reliable energy infrastructure that is better equipped to handle the growing demand for renewable energy. This shift is vital in meeting our climate targets and reducing our carbon footprint.

In addition, Labor’s proposal aligns with Australia’s broader renewable energy goals, including achieving 82% renewable energy in the National Electricity Market (NEM) by 2030. With more households investing in solar panels and batteries, the capacity of the grid to store and distribute renewable energy will improve, helping to meet these ambitious targets.

What this means for the future of Australian households

The introduction of this battery rebate plan is a game-changer for Australian households looking to reduce their reliance on the grid and lower their energy bills. However, the benefits extend beyond just financial savings. The transition to a more sustainable, solar-powered home is also a step towards energy independence, reducing vulnerability to rising energy prices and supply disruptions.

FranklinWH Off-grid battery system
FranklinWH battery system

In the long term, as battery technology improves and becomes more affordable, the cost of installing solar and battery systems is expected to decrease further. This means that even more households will be able to make the switch to solar and battery storage, contributing to a more sustainable and self-sufficient energy future for all Australians.

Time to upgrade your solar system

If your current solar setup is an older or smaller system, now is the perfect time to think about upgrading. A smaller system may not generate enough surplus energy to justify a battery, or it may be incompatible with newer battery technology. Adding more solar panels or upgrading your system to be battery-compatible can increase the amount of energy your system generates and store more of it for use when needed.

This upgrade could make you eligible for the rebate, allowing you to maximise your savings on both installation and energy bills. Plus, an upgraded system ensures that you are ready to take full advantage of future developments in energy storage technology.

By taking action now, you can future-proof your home’s energy needs, reduce your reliance on the grid, and make a meaningful contribution to Australia’s transition to clean energy.

Get a tailored quote today

With Labor’s proposed rebate plan, there has never been a better time to consider solar and battery storage for your home. If you’re thinking about upgrading your system, it’s important to get a personalised quote to find the best solution for your needs. Speak to a trusted provider about your options for adding more solar panels or upgrading to a battery-compatible system.

By investing in solar and battery storage, you’re not just cutting your energy bills; you’re also doing your part to help Australia achieve its renewable energy goals and reach net-zero emissions by 2050. The rebate makes it easier than ever to get started—so why wait?

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