Labor Pledges $2.3 Billion to Subsidise Household Batteries

The policy provides Australian homeowners with a 30 percent discount.

Prime Minister of Australia, Anthony Albanese addresses the media at Parliament House in Canberra, Australia on March 28, 2025. Hilary Wardhaugh/Getty Images

Labor has pledged $2.3 billion (US$1.4 billion) for the subsidisation of household batteries from July if re-elected.

The policy provides Australian homeowners with a 30 percent discount on virtual power plant-ready battery systems (5–50 kWh) when installed with new or existing solar panels.

While one in three Australian homes have solar panels, only one in 40 have battery storage. Household batteries facilitate the absorption of excess rooftop solar during the day, for use outside of daylight hours.

“The sun doesn’t always shine—but households and businesses having batteries means we can keep solar energy on tap and keep energy bills down consistently,” Energy Minister Chris Bowen said.

Labor says the policy will reduce the price of a battery by $4,000 and cut $1,100 a year from the average power bill of an Australian household.

Albanese said at a Brisbane rally on April 4 that every household that installs a battery drives down energy prices for everyone else because it reduces peak demand.

“The problem at the moment is the upfront cost of a battery is too high for too many people. We’re going to fix that,” he said.

The subsidy level will be subject to annual reviews and the discount is only available for one battery per household.

Support for Household Batteries

Some MPs who could hold sway in a hung parliament have previously supported incentives for household batteries

Crossbencher Helen Haines introduced a bill to reduce household battery prices in 2023 and “teal” Independent Allegra Spender recently pitched a zero-interest loan scheme to boost battery uptake.

Battery schemes have been introduced on a statewide basis in Australia and Labor said the proposed policy would work alongside them, suggesting greater discounts may be available.

General manager of distributed energy for the Clean Energy Council, Con Hristodoulidis, said a national battery scheme would ensure that more households can boost their energy independence and save on their bills.

“It’s good news for everybody’s wallets, and the long-term future of Australia’s modern energy system—built on the cheapest form of renewable energy backed by storage,” Hristodoulidis said.

Policy Criticism

Opposition Leader Peter Dutton said on April 4 that while he strongly supports batteries, they are very expensive.

He said Labor will have to raise power prices to compensate people with batteries.

“I just think people will see through it,” he said.

“Prices are going to go up for electricity under a re-elected Albanese government. And I don’t think Australians can afford that.”

On ABC Insiders, Nationals Leader David Littleproud said not everyone can afford a battery in the short term.

Littleproud said Australia needs to flood the market with gas to get gas back to the grid and said the complete Coalition energy policy will be available soon.