Federal Government commits $100m to battery loan scheme to finance 40,000 homes in SA
A $100 MILLION low-interest loan program to help South Australians cut power bills by installing home batteries has been given the green light.
A $100 MILLION low-interest loan program to help South Australians cut power bills by installing home batteries has been given the green light.
Federal Energy Minister Angus Taylor will today announce that lending company RateSetter has been chosen to administer the loans, which will help households access the SA Government’s Home Battery Scheme.
Funding for the low-interest loans will be provided through the federally owned Clean Energy Finance Corporation. RateSetter will also offer loans for batteries.
The $100 million in funding is on top of $100 million the State Government will spend on the battery scheme.
The program will enable 40,000 SA households to access grants and loans to install home-battery systems to store excess electricity from solar panels.
“Home batteries can be charged during the day with excess electricity from rooftop solar systems, to be used later in the day,’’ Mr Taylor said.
“This reduces the amount of electricity drawn from the grid throughout the day, lowering power bills and reducing cost-of-living pressures.’’
SA’s Energy Minister, Dan van Holst Pellekaan, welcomed the $100 million federal contribution.
“The combination of a grant and the low-interest loan puts home batteries, solar panels and cheaper electricity within reach of tens of thousands of South Australians,’’ he said.
The scheme will provide households with grants of up to $6000 to buy smart batteries to store solar power.
Household batteries retail for about $10,000.
The Home Battery Scheme is one of the Marshall Government’s signature programs to reduce power bills.
A battery providing 10 kWh of storage could receive a $5000 subsidy, or $6000 for concession holders.
A 5 kWh battery could receive a $2500 subsidy, or a $3000 subsidy for concession holders.
In addition to managing the federal loans, peer-to-peer lender RateSetter will enable private investors to participate in the home-battery scheme through a new SA renewable energy lending market.
Mr Taylor, who took over the energy portfolio after Scott Morrison became Prime Minister, said the Federal Government was determined to drive power prices down.
“The Government is committed to getting prices down, keeping the lights on and maintaining energy reliability and security,’’ he said.