Home batteries subsidy overhauled with $7.2bn injection as Australians rush to take up discount | Renewable energy

Rebates for larger systems will be reinstated under a popular home battery program as the program’s budget is tripled.

The federal subsidy, in effect for five months, will be generously increased to $7.2 billion over four years, after initially being planned for $2.3 billion, Energy Minister Chris Bowen said.

It was thought the fund would run out quickly, partly because households were installing systems up to the maximum subsidized size to take full advantage of the unique offer.

Bowen said he expected the $2.3 billion to be used up in the coming year.

“We routinely install 1,000 batteries per day every business day and a little less on Saturdays, but still about 500 every Saturday and about 1,000 every business day,” Bowen said.

“I would say it was even more successful than we thought.”

Under the scheme, eligible households and small businesses were able to receive a 30% discount on a home battery when installed alongside a new or existing rooftop solar installation.

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Subsidies were available on batteries with a capacity between 5 kWh and 100 kWh, with the rebate applied to the first 50 kWh.

Bowen confirmed on Saturday that the first 50 kWh of a system would still be eligible for support, but that rebates would not be as generous per kWh for medium and large batteries.

Tiered support based on battery size would encourage more households to get the “right size” battery, the government said, and keep the scheme open to more households.

“We know that someone who installs a battery can reduce their bills by up to 90 percent and if they already have solar panels, that’s a savings of about $1,000 a year,” Bowen said.

“And if you install solar panels in a battery at the same time, that’s a savings of about $2,000 a year.”

From May 1, systems up to 14 kWh – deemed suitable for small households – would receive a total reduction of 30% for each kWh.

Rebates would then decrease for medium-sized kits, then again for large systems over 28 kWh.

Nepean Solar Solutions managing director Jim Hill said the changes were a “huge relief”.

“A boom and bust cycle has had a huge impact on this industry, so this sensible change which ensures the long-term viability of our sector is a huge relief and we welcome it,” said the head of the Sydney-based solar and battery installer.

“As a small business, we need to be able to plan for stock orders, staff training and development, or even the hiring of new apprentices. This approach allows us to do this with confidence.”

Smart Energy Council chief executive John Grimes welcomed the increase in funding and supported changes to the rebates to allow more households and businesses to access them.

“We are a responsible industry that believes in bringing the benefits of solar and batteries to as many people as possible,” he said.

“If it means cheap changes, we support it.”

Households who add a home battery can expect savings of $600 to $900 a year on energy costs, on top of the benefits of solar, according to figures from the Australian Energy Market Commission.