The Greens have provided further details of their battery system incentive that aims to support installations in an estimated 1.2 million Australian homes; with an average storage capacity in each instance of 10 KWh.
As we reported yesterday, the policy will provide a 50 per cent tax credit on purchases of battery storage systems made by households; up to a maximum of $5,000.
The Greens will also introduce a Low Income Solar Storage (LISS) grant to be administered by the Australian Renewable Energy Agency (ARENA). This grant would be in addition to the refundable tax credit for households.
Both incentives would be scaled back over time, ending altogether in July 2021.
|
2016-17 |
2017-18 |
2018-19 |
2019-20 |
2020-21 |
|
|
Tax credit |
$5,000 |
$4,000 |
$3,000 |
$2,200 |
$1,500 |
|
LISS |
$5,000 |
$4,000 |
$3,000 |
$2,000 |
$1,000 |
Businesses haven’t been left out of the Greens’ plan. Uptake of energy storage for commercial enterprises would be supported by reducing the length of time that battery system assets can be depreciated for tax purposes; from 15 years to 3 years*. The Greens say up to 30,000 businesses could be supported over the next four years.
“Increased take up of battery storage will help drive down pollution and support the Greens goal of shifting Australia to 90% renewables by 2030,” says the party.
The scheme will be mostly paid for by by redirecting money from some fossil fuel tax breaks.
The Greens will use this policy as a tool when negotiating the recent Budget with the Turnbull government.
Solar Citizens welcomed the policy.
“This is just one of many announcements over the last fortnight that shows the march to 100% renewable energy is well underway in this country, and it is only going to move faster,” said Claire O’Rourke, Solar Citizens’ National Director.
“The Australian Greens have made a suite of positive, practical announcements on renewables, including today’s on battery storage,” she said.
Currently, the only battery-specific related incentive in Australia is a program operating in Adelaide City that offers up to $5,000 for installing battery-based energy storage and up to $5,000 to install solar panels in Australia.
* The ability to claim a 100% tax deduction in the first year for battery systems may already be possible in some instances through incentives announced in the Federal Budget last year. Businesses should check with their tax advisors first before making a purchase decision.
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