Federal Labor’s solar batteries rebate plan has received ringing endorsement from the Smart Energy Council (SEC).
SEC analysis finds Labor’s offer of $2,000 rebates for residential battery systems would cut power bills for families by 60-80 per cent.
It finds a family of three using electricity for heating, washing, lighting and appliances consumes around 6,570 kWh of electricity per year.
In NSW, that equates to an annual cost of $2,336 – or $584 per quarter. However, by adding a 5 kW solar power system and a 6 kWh battery, this bill is reduced to $467 per year.
The research also finds these savings remain the same, even for larger consumers of energy, with bigger battery systems.
Benefits of installing solar batteries
In addition to the 60-80 per cent reduction in power bills, solar batteries provide a wide range of benefits to households. These include:
- Possible limited protection from power black outs;
- Reducing greenhouse emissions;
- Increasing property values;
- Improving grid stability by allowing utilities to access your stored electricity; and
- Preparing for the inevitable uptake of electric vehicles.
In addition, a $2,000 discount on the cost of a solar battery system reduces payback periods. Leading brands like Tesla’s Powerwall 2 offer 10-year warranties on their products. With the $2,000 support, this shortens payback time on batteries under the warranty period in all states and the ACT:
| State/Territory | Current payback period | Payback period with $2000 support |
| South Australia | 5.3 years | 3.5 years |
| New South Wales | 6 years | 5 years |
| Western Australia | 6 years | 5 years |
| Queensland | 6.5 years | 5 years |
| Victoria | 7 years | 5.5 years |
| ACT | 9 years | 7.5 years |
| Tasmania | 10 years | 8 years |
Labor’s solar batteries rebate plan holds promise
If elected on May 18, Labor says it will then set a target to install one million solar batteries across the nation by 2025. Beginning January 2020, it will also provide $2,000 rebates for eligible battery systems for households with gross annual incomes under $180,000.
The scheme will support 100,000 new battery installations. It’s also complemented by low-cost financing through the Clean Energy Finance Corporation. Furthermore, eligible systems must be virtual power plant (VPP) capable in order to maximise system-wide benefits.
Overall, Labor’s costings put its solar battery rebate plan at $201.3 million over forward estimates. Labor says it will pay for the scheme by closing tax loopholes for multinational corporations.
