From Solar to Storage: Labor’s $2.3Billion Bet on Household Batteries to Cut Carbon

Image: Anthony Albanese (LinkedIn)

Following its decisive victory in the May 3 federal election, the Australian Labor Party will implement its AUD 2.3 billion (USD 1.4 billion) Cheaper Home Batteries Program, aiming to install 1 million new household battery systems by 2030.

Launching on July 1, 2025, the initiative provides a 30% rebate (up to AUD 4,000) for solar-compatible batteries with capacities of 5–50 kWh, allowing households to claim subsidies for up to 100 kWh total storage. The government estimates participating households could save AUD 2,300 annually by combining batteries with new solar panels, compared to AUD 1,100 for existing solar users.

Currently, 4 million Australian households have installed rooftop solar panels, but only around 250,000 are equipped with batteries. The proposed plan is expected to stimulate household energy storage demand, creating job opportunities across production, sales, installation, and maintenance in the storage industry.

However, the plan faces challenges:

High Costs: Even subsidized, typical systems cost AUD 12,000–15,500, requiring 5–10 years to break even, disproportionately benefiting homeowners over renters.

Supply Chain Pressures: Annual installations must double to 200,000 units, straining battery supplies and skilled labor availability.

Regional Inequality: States like NSW and Victoria offer additional rebates (up to AUD 2,400 and AUD 8,800), but remote areas lack access to subsidies and technicians.

The policy’s effectiveness will depend on coordination between federal and state governments, public awareness campaigns, and industry capacity to meet rising demand.

Sources: Federal campaign materials , industry reports , and state policy documents.