The Labour government is expected to introduce a new household battery incentive scheme as part of its efforts to address rising cost-of-living pressures and promote climate action.
The initiative, which is likely to be a key component of Anthony Albanese’s re-election campaign, could expand existing renewable energy support to include home battery storage. The move comes as both major parties seek to position themselves on energy policy, with the Coalition also considering a home battery scheme.
The competing proposals reflect growing political momentum around household electrification, as governments look for long-term solutions to reduce energy bills and cut greenhouse gas emissions.
Expansion of Renewable Energy Support
The most likely policy under Labour’s plan is an expansion of the Small-scale Renewable Energy Scheme (SRES), which currently subsidises solar panels, heat pumps, and other renewable technologies.
According to the Clean Energy Regulator, more than 300,000 solar systems have been installed annually under the SRES since 2020, saving households an estimated $1,500 per year. However, the scheme is set to expire in 2030, prompting calls for an updated approach that includes battery storage.
Several state and territory governments already provide subsidies for home batteries, with Western Australia’s premier, Roger Cook, recently announcing rebates of between $5,000 and $7,500 for battery installations.
The federal government has also allocated $800 million to upgrade 100,000 social housing properties with energy-efficient appliances and has funded suburb-wide electrification trials through the Australian Renewable Energy Agency.
Clean energy advocates argue that battery storage is essential for households looking to maximise their solar energy use. Without storage, many homeowners are forced to sell excess electricity back to the grid at lower rates while still relying on the grid during peak demand periods.
John Grimes, chief executive of the Smart Energy Council, described battery incentives as the “best way to address cost-of-living pressures”, helping families cut their energy costs while reducing reliance on fossil fuels.
Political Competition Over Household Electrification
The Coalition has signalled its own home battery policy, with shadow climate change and energy minister Ted O’Brien confirming that battery storage remains on the agenda.
The Coalition’s energy platform currently centres on nuclear power proposals, with plans for reactors by 2035, but a household battery scheme could provide an alternative approach to energy resilience and affordability.
Independent MPs, including Allegra Spender and Helen Haines, have also been pushing for loan-based schemes to help households transition to electric appliances.
Francis Vierboom, CEO of Rewiring Australia, has advocated for a HECS-style loan model, calling it an “economically efficient” way to ensure battery storage benefits lower-income households.
With energy policy set to be a decisive factor in the upcoming election, both major parties are under pressure to present clear solutions.
