Storing the Energy that we make

Labor is poised to introduce a household battery incentive scheme as part of its dual cost-of-living and climate action strategy ahead of the next federal election. According to The Guardian’s Dan Jervis-Bardy,1 the Albanese government is preparing a large-scale residential energy efficiency package that could see home battery subsidies added to the existing small-scale renewable energy scheme (SRES). With the Coalition also hinting at its own home battery proposal, energy efficiency is becoming a key battleground in the upcoming election.

The Push for Household Electrification

According to the article, clean energy advocates and crossbench MPs have been vocal in calling for greater subsidies for solar panels, electric appliances, and home batteries. Their argument is straightforward: while short-term energy rebates offer temporary relief, transitioning households away from gas and towards electrification provides a long-term solution to rising power costs and emissions.

Industry sources cited by Jervis-Bardy confirm that multiple policy options have been considered in recent years, including tax rebates and a Hecs-style loan scheme championed by Saul Griffith’s Rewiring Australia. However, the most likely outcome appears to be an expansion of the small-scale renewable energy scheme (SRES), which currently supports solar panels, heat pumps, water heaters, wind turbines, and hydro systems but does not yet cover home batteries.

The Numbers Behind Solar and Battery Uptake

The impact of solar incentives is already evident. Since 2020, over 300,000 solar systems have been installed annually under the SRES, saving households an average of $1,500 per year, according to the Clean Energy Regulator. Several state and territory governments, such as Western Australia, already offer substantial battery rebates, with WA’s Labor government promising subsidies of up to $7,500 if re-elected.

Federally, the Albanese government has committed $800m to upgrading over 100,000 social housing properties with energy-efficient appliances. The Australian Renewable Energy Agency (ARENA) has also been directed to fund suburb-wide electrification trials, aiming to transition entire neighbourhoods away from gas.

Industry and Political Reactions

The chief executive of the Smart Energy Council, John Grimes, told The Guardian that "there has never been a better time for a national battery booster program," arguing that home battery adoption is critical in addressing cost-of-living pressures and energy security.

Independent MPs are also championing electrification. Allegra Spender has proposed a mix of loans, tax write-offs, and direct funding to upgrade 800,000 homes and rental properties. Helen Haines has backed a similar loan scheme targeting household batteries and electric appliances.

Meanwhile, the Coalition has indicated it is open to including a battery scheme within its broader energy policy, which currently revolves around plans to build nuclear reactors from 2035. Shadow climate and energy minister Ted O’Brien confirmed that household batteries remain on the agenda but declined to provide specifics, saying the Coalition would reveal its plan closer to the election.

Francis Vierboom, CEO of Rewiring Australia, believes the party with the most ambitious electrification policy will gain significant political support. Vierboom advocates for a government-backed loan program, describing it as “economically efficient, inexpensive to administer, and capable of equitably targeting the biggest benefits to the households that deserve it most.”

The Bottom Line

Household batteries are a logical next step in Australia’s energy transition. With rooftop solar adoption at record levels, allowing households to store excess power instead of sending it back to the grid at diminishing feed-in tariffs makes both financial and environmental sense. Battery incentives could provide long-term bill relief, boost grid stability, and reduce reliance on fossil fuels.

However, questions remain about the execution. Expanding the SRES to include batteries would provide immediate financial relief to homeowners looking to invest, but it doesn’t address the high upfront cost barrier for many households. A well-designed loan scheme, as proposed by Rewiring Australia, could be a more equitable solution, ensuring that lower-income households are not locked out of the benefits of electrification.

With both major parties now recognising the importance of household batteries, the real question is whether their policies will be designed to maximise long-term climate and financial benefits or simply serve as election sweeteners. Consumers should scrutinise the details and not just the headlines—because when it comes to energy policy, the fine print always matters.

References

1 Dan Jervis-Bardy, “Labor backs household batteries in bid to win over voters on cost-of-living and climate worries” The Guardian 02 March, 2025. , February 14, 2025, https://www.theguardian.com/australia-news/2025/mar/02/labor-backs-household-batteries-in-bid-to-spark-voters-on-cost-of-living-and-climate-worries

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