As part of its election pitch, Labor is promising to roll out a $2.3 billion battery program if re-elected.

The government promises it will cut the cost of a household battery by about $4,000, which is about 30 percent of a typical battery.

The discount will be delivered through the government's small-scale renewable energy scheme. This program aims to help make rooftop solar panels and hot water systems more affordable.

According to the Clean Energy Regulator, in 2024 there were over four million solar power systems installed in Australian homes and small businesses.

Research from Australia’s Clean Energy Council shows that 12.4 percent of the country's power supply came from solar generation in 2024 but only 4.5 percent of the households with solar panels installed also had a home battery attached.

The Department of Climate Change, Energy, the Environment and Water said a household with existing rooftop solar could save up to $1,100 off their power bill every year.

Add a battery on top of that and the department estimates that a household could save up to $2,300 a year, which is around 90 percent of a typical family electricity bill.

Labor says this subsidy will significantly reduce the time it takes to pay off the battery by delivering cheaper quarterly electricity bills.

An estimated number of 10.8 million households (37 percent of homes in Australia) currently have solar panels installed.

With Labor’s solar installation scheme, the cost of the subsidy is paid for by all electricity consumers through an extra charge on everyone's bills. That charge is smaller than other taxes, but it is still an extra cost.

With batteries however, Labor’s proposal is to pay for the scheme through the federal budget. This means there will be no extra cost on energy bills, rather everyone’s taxes will go towards the transition to home batteries.

Gippsland sees a rise in solar and battery installation

Blake Edwards opened a Solar Run franchise in Drouin four years ago. 

Edwards has recently been observing a further shift in the market, with an increasing number of customers choosing to install batteries in Gippsland as well as solar panels.  

Edwards estimates 70 to 80 percent of the homes he works on are for customers claiming government subsidies.

He told the Gippsland Monitor that “anyone that owns a business and works between nine and five, and they use a bit of power, it's not good business not having solar on your property”.

Last month he sold 150kW of solar for residential properties (the average home installs a 9.5kWh system) in Gippsland with nearly two in three people (65 percent) installing a battery.

Edwards has noticed that some households have even opted to switch their mains off and run entirely off the grid.

The Victorian government also offers a solar battery loan, which allows those eligible to claim an $8,800 interest free loan on batteries.

Economists call for investment in small scale renewables

A recent letter jointly signed by 60 Australian economists, energy analysts and policy specialists has called for continued investment in household clean energy.

The letter said that “simple household clean energy upgrades can deliver immediate cost-of-living benefits and reductions in carbon emissions, and electrification can safeguard the future of industrial jobs and the communities that rely on them”.

The group identified benefits of investing in small scale household renewables including immediate cost-of-living relief, health benefits, a boost to the Australian economy and benefits for Australian jobs and manufacturing.