Several media outlets have reported The Greens will today announce a policy providing a 50 per cent tax credit on residential battery storage system purchases.
The policy will reportedly be used as a bargaining piece by The Greens in their negotiations with the Turnbull government over passage of its budget; which offered nothing in relation to support for renewable energy.
The incentive would be up to a maximum of $5,000 for those earning above $80,000 before deductions. Those earning below $80,000 would be entitled to an additional credit of up to $5,000.
The tax credit will gradually taper down to $1,000 by July 2020; taking into account the expected reduction in cost of battery storage systems over time.
Incentives for business will be in the form of accelerated depreciation.
“We will accelerate the take-up of clean energy by redirecting money from fossil fuel tax breaks into support for battery storage in homes and businesses,” said Green energy spokesman, Adam Bandt.
The Sydney Morning Herald reports much of the program will be paid for by the removal of the $2.75 billion accelerated depreciation incentive for aircraft and fossil-fuel intensive industries.
The policy will likely be very well received by the 1.4 million+ solar households in Australia, as well as businesses and others considering making the switch to solar power.
Energy storage enables solar owners to make more from their house solar panels. Instead of exporting surplus high-value solar electricity to the mains grid and perhaps only receiving a few cents per kilowatt-hour for it, that energy can be stored for use during the evening or when demand exceeds generation.
A survey carried late last year indicated 81% of households that have installed or are considering installing solar energy systems are also considering energy storage.
Interest in home battery solutions has been stoked by the recent availability in Australia of Tesla Powerwall and Fronius Solar Battery. A slew of other next generation energy storage products are also on the horizon, including the Enphase AC Battery and RedFlow’s Z-Cell.
“With public interest high, now is the time for a targeted, 5-year support package to drive down costs and put battery storage in reach of every household and business.” said Mr. Bandt.
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