Labor’s household batts scheme sounds a lot like pink batts 2.0

Just like pink batts and solar panels, we have Labor promising another massive taxpayer subsidised residential energy installation program, with all the same risks, writes Stephen Galilee.

Here we go again. Another Labor Government announcing billions in taxpayer subsidies for household energy installations, along with an ambitious target for a rapid rollout. Energy Minister Chris Bowen will be in charge.

What could possibly go wrong?

This time it’s the Albanese Labor Government promising billions in subsidies for household battery installations, with a target to make a million homes more energy efficient by 2030. More batteries in more homes is certainly a worthy ambition. However, we’ve seen a previous Labor Government make a similar promise, and it didn’t end well.

Back in 2008, the Rudd Labor Government promised billions to make two million homes more energy efficient through pink batts installation.

Tesla Powerwall battery at the home of Chris Williams & family at Killara. Picture: AAP/Troy Snook

There was a dramatic rush to deploy the ambitious scheme, and an entire industry of roof installers emerged almost overnight in an attempt to cash in on the massive subsidies on offer.

Prior to the pink batts scheme, an estimated 200 businesses in Australia were engaged in retrofit insulation installation.

A year later, a staggering 8,300 businesses were registered as pink batts installers.

Jonathan Prendergast displaying his battery that is used to power his home in Como during peak times. Picture: Ted Lamb

Many were not adequately qualified to do the work involved. However, despite the safety risks and repeated warnings, the pink batts scheme was enthusiastically promoted by the Rudd Labor Government.

It didn’t take long for things to go wrong.

By early 2010 four young tradesmen had tragically lost their lives in workplace accidents related to the scheme. A series of house fires were also reported at properties where batts had been installed.

An audit of the scheme was conducted, 13,000 roofs were inspected, and almost 30 percent were found to have issues relating to safety and quality of the installations.

The scheme was halted, but not before contributing to the political downfall of Peter Garrett as the Minister formally responsible for the scheme, and the demise of Kevin Rudd, who deposed as Prime Minister by Julia Gillard soon after. Since then, the term ‘pink batts’ has become synonymous with epic government policy failure.

We all hoped the lessons of pink batts had been learnt. However, there are ominous signs of another potential policy disaster.

For many years governments have subsidised installation of rooftop solar. In 2023 Ausgrid told a NSW Parliamentary Inquiry that 82 percent of rooftop solar installations were not compliant with regulatory frameworks.

Pink batts in storage at Fletcher Insulation at Rooty Hill in western Sydney after the Federal Government cancelled the home insulation program. Picture: Tracee Lea

The National Electrical Contractors Association is the same organisation that issued repeated warnings about the pink batts scheme. It told the 2023 NSW Parliamentary Inquiry such non-compliant solar installations could lead to “serious risks” to the safety and reliability of energy supply.

Now, just like pink batts and solar panels, we have Labor promising another massive taxpayer subsidised residential energy installation program, with all the same risks.

Will the new army of installers attempting to put batteries in a million homes be adequately trained and properly qualified?

If done efficiently, safely and without unreasonable cost to taxpayers, supporting more batteries in homes is a policy worth considering. However, anyone with any recollection of the ‘pink batts’ scheme will be extremely apprehensive about another Labor Government making another expensive and potentially risky household energy installation promise.

Stephen Galilee is CEO, NSW Minerals Council