Insider Brief
- Prime Minister Anthony Albanese announced a $2.3 billion plan to cut home battery costs by 30% and support over one million new installations by 2030 if Labor is re-elected.
- The program aims to lower household energy bills by up to 90%, with savings up to $2,300 annually for homes combining new solar and battery systems.
- Delivered through the existing Small-scale Renewable Energy Scheme, the subsidy is part of a broader energy strategy ahead of Australia’s May 3 federal election.
Labor Government’s Solar Battery Subsidy Targets Cheaper Home Energy
Australia’s Labor Party has pledged to help cut household energy prices through subsidizing home solar batteries if re-elected.
Prime Minister Anthony Albanese has announced that a re-elected Labor government will invest AUS $2.3 billion starting July 2025 to reduce the cost of home batteries by 30%, part of a national push toward cheaper and cleaner energy. The Cheaper Home Batteries Program is expected to support the installation of more than one million new battery systems by 2030.
Solar Battery Systems Could Cut Household Energy Bills by 90%
The government estimates that the plan could slash household electricity bills by up to 90%. According to data from the Department of Climate Change, Energy, the Environment and Water, homes with existing rooftop solar could save up to $1,100 annually, while those installing both solar and battery systems could save as much as $2,300 per year.
Under the plan, the discount will be delivered through Australia’s existing Small-scale Renewable Energy Scheme, which has provided solar subsidies since 2011. The program will reduce the installed cost of a typical solar battery by around $4,000, enabling more homes to store solar power for use when the sun isn’t shining.
Solar Battery Adoption Set to Expand Across Australian Homes
Only about one in forty Australian households currently have a home solar battery, despite nearly one-third having solar panels. The solar battery subsidy is aimed at closing that gap and reducing energy demand during peak periods, easing pressure on the national grid and lowering prices overall.
Small businesses and community facilities will also be eligible. Batteries up to 100 kWh in size, with support for installations up to 50 kWh, qualify for the subsidy. This expansion is designed to help more than just homeowners benefit from the transition to renewable energy.
The solar battery plan is part of a broader energy strategy from the Labor government. It includes an additional $150 in direct energy bill relief for every household starting July 1, and around $1 billion through the Household Energy Upgrades Fund to support financing for energy-efficient appliances and upgrades.
Other key components include an $800 million Social Housing Energy Performance Initiative to lower energy costs and improve living conditions for public housing tenants, and a $100 million Community Energy Upgrades Fund to boost energy efficiency in public buildings such as libraries, community centers, and sporting fields.
Solar Battery Subsidy Included in 2025-26 Federal Budget
The Department of Climate Change, Energy, the Environment and Water conducted analysis on the solar battery program before the start of the caretaker period. The $2.3 billion investment is included in the 2025-26 federal budget.
Australia’s federal election is May 3.
