Doubts raised over the long-term affordability of Labor’s $2.3bn home battery scheme

Labor has been spruiking its home battery policy — but the Opposition has raised doubts over the scheme, with one critic labelling it “pure fantasy”.

Labor’s $2.3 billion home battery policy will require Aussies being squeezed by the cost of living crunch to fork out at least $4000 to have a chance at cheaper bills, the Prime Minister has said, while the Coalition has also sledged the chances of one million new batteries being rolled out by 2030.

Coalition energy spokesman Ted O’Brien said the battery promise, announced over the weekend, was “pure fantasy”.

Just 140,000 homes in Australia had battery attachments as of mid-2024, according to a report from the Clean Energy Council last year, meaning there would have to be a 714 per cent increase in batteries within five years to hit Labor’s promised targets.

Installation would also have to drastically jump as well – with more than 45,000 installations per quarter required to hit the one million threshold in 2030.

That compares to the current rate of about 14,555 a quarter, recorded in the year leading up to July 2024.

Coalition energy spokesman Ted O’Brien said the battery promise, announced over the weekend, was “pure fantasy”. Picture: ABC

Mr O’Brien claimed the scheme, which isn’t means tested, would also benefit wealthier households who could afford the initial outlay on battery units, compared to poorer families.

“Now Labor wants households to shell out at least $9,300 for a battery which will start delivering them a positive economic return sometime in the early 2030s,” he said.

“This isn’t energy reform and it’s certainly not cost of living relief — it’s a taxpayer-funded frolic that benefits millionaires while working families foot the bill.”

Prime Minister Anthony Albanese on Monday hit back at suggestions families would still have to fork out almost $10,000 for a battery system, with that figure based off Labor’s statements that the scheme would cut 30 per cent – worth $4000 – off a typical installed battery.

Prime Minister Anthony Albanese on Monday hit back at suggestions families would still have to fork out almost $10,000 for a battery system. Picture: NewsWire/ Glenn Campbell

“If you actually have a look at the comments that have been made very clearly by the Clean Energy Council and others who actually know something about renewables … the batteries come in various forms. Some of them are just over $4,000, you can have a range of batteries,” he said.

When later pressed on how many Australians could afford the $4000 figure, Mr Albanese said there was enough range in battery prices that the scheme wouldn’t be “one size fits all”.

Labor has also claimed the move will “help push down peak demand with fewer homes needed to be on the grid at one time, pushing down prices for everyone”, according to a press release issued by the party – however no figure of how much it’ll reduce costs for all has been released.

The home battery scheme, which will also be extended to businesses and community facilities like sports clubs, was the centrepiece announcement of Labor’s rally of party faithful in Brisbane on Sunday.

Originally published as Doubts raised over the long-term affordability of Labor’s $2.3bn home battery scheme