Discounts on larger systems will be brought back under the popular Home Battery Scheme as the scheme's budget triples.
The federal subsidy, which has been in effect for five months, will receive a generous increase to $7.2 billion over four years after it was originally expected to cost $2.3 billion, the US energy secretary said. Chris Bowensaid.
The fund was thought to be drying up quickly, in part because households were installing systems up to the maximum subsidized size to take full advantage of the one-time supply.
Bowen said he expects the $2.3 billion to be exhausted next year.
“We were consistently installing 1,000 batteries a day every weekday and a little less on Saturdays, but still about 500 every Saturday and about 1,000 every weekday,” Bowen said.
“I would say it was even more successful than we thought.”
Under the scheme, eligible households and small businesses were able to receive a 30% discount on their home battery when installed alongside a new or existing rooftop solar panel.
Sign up: AU Breaking News email
The subsidies applied to batteries ranging from 5 to 100 kWh, with the discount applied to the first 50 kWh.
On Saturday, Bowen confirmed that the first 50 kWh of a system will still be eligible for support, but the per-kWh rebates for medium- and large-sized batteries will not be as generous.
The government says staggered support according to battery size will encourage more households to purchase “appropriately sized” batteries and keep the scheme open to more households.
“We know that someone who puts a battery in can cut their bills by up to 90%, and if they already have solar panels, that's a savings of about $1,000 a year,” Bowen said.
“And if you put solar panels in the battery at the same time, that saves about $2,000 a year.”
From May 1, systems up to 14 kWh that are considered suitable for small households will receive a full 30% rebate per kWh.
Rebates will then drop for mid-sized kits and again for larger systems over 28 kWh.
Nepean Solar Solutions chief executive Jim Hill said the changes were a “huge relief”.
“The boom and bust cycle has had a huge impact on this industry, so this smart change to ensure the long-term viability of our sector is a huge relief and we welcome it,” said the head of a Sydney-based solar and battery installer.
“As a small business, we need to be able to plan for ordering stock, training and development of staff, and taking on new apprentices. This approach allows us to do this with confidence.”
Smart Energy Council chief executive John Grimes welcomed the increase in funding and supported changes to rebates to allow more households and businesses to access.
“We are a responsible industry that believes in spreading the benefits of solar energy and batteries to as many people as possible,” he said.
“If it means changing the discounts, we support that.”
According to the Australian Energy Market Commission, households who add a home battery can expect energy cost savings of $600-$900 per year, in addition to the benefits of solar power.
