Albanese plans to slash solar battery costs by 30 per cent if re-elected

Homeowners could see their yearly power bill slashed by up to 90 per cent following a new pledge by the Prime Minister.

Homeowners looking to install a new solar and battery system could save up to $2300 under a new election pledge by the Prime Minister, with energy and cost of living a key focus for both parties in the campaign.

A re-elected Labor government plans to slash the cost of a typical battery by 30 per cent when it rolls out its Cheaper Home Batteries Program from July 1, 2025, affecting households, small businesses and community facilities.

Modelling by the Department of Energy found a household with existing rooftop solar could save up to $1100 off their power bill every year under the plan, with those installing a battery and solar tipped to save up to $2300.

The figure represents up to 90 per cent of a typical family’s electricity bill, according to the Labor government that has bet big on energy rebates as it confronts an election largely focused on mounting cost of living pressures.

Prime Minister Anthony Albanese says Labor’s ‘number one priority is delivering cost of living relief’. Picture: Jason Edwards / NewsWire

“Labor’s number one priority is delivering cost of living relief,” Anthony Albanese said.

“That’s why we want to make sure Australians have access to cheaper, cleaner energy.

“This is good for power bills and good for the environment. Only Labor has a plan to build Australia’s future.”

Energy Minister Chris Bowen said the program would allow more homes and businesses to keep solar energy “on tap” even when the sun wasn’t out, and hit out at plans by Opposition Leader Peter Dutton to go nuclear.

“The contrast is clear – a re-elected Albanese government will take pressure off household energy bills, while Peter Dutton’s Liberals will spend $600bn on a nuclear plan that drives power bills up,” Mr Bowen said.

Homeowners with existing solar could save up to $1100 per year. Picture: NewsWire / Luis Enrique Ascui

“We’ve already hit 46 per cent renewable energy under Labor and we’re on track to hit 82 per cent renewable energy by 2030.

“We can’t afford to risk this progress.”

The Cheaper Home Batteries Program will include an up to $4000 reduction in the upfront cost of installing an 11.5kWh virtual power plant-ready battery – a typical size for a household – alongside new or existing solar.

The government said the discount would be reduced over time in-line with expected battery costs and will delivered through the existing Small-scale Renewable Energy Scheme, which has delivered solar subsidies since 2011.

It is hoped uptake of batteries due to the program – of which there is projected to be one million more by 2030 – will help drive down prices for all energy uses because there will be fewer homes or businesses pulling from the grid.

Opposition Leader Peter Dutton on Sunday said Labor’s battery policy was “proof” power prices would increase if the government was returned at the May 3 election.

“Mr Albanese is promising higher electricity prices at this election, his admission today that he’s going to have to compensate people with batteries because his power prices will go up in the next term of government,” he said.

“I just think people will see through it.”

The Smart Energy Council “strongly welcomed” the pledge by Mr Albanese.

Chief executive John Grimes said the program would lash power bills and was “the most important development in consumer energy since Australians first gained access to subsidised solar panels”

“This really is a battery bill buster program,” he said.

Energy Minister Chris Bowen said the program would allow more homes and businesses to keep solar energy ‘on tap’. Picture: Christian Gilles / NewsWire

“This Albanese government program will literally help millions of Australians permanently reduce their energy bills.

“Australians can take control of their power bills and when and how they produce and use electricity.

“This literally gives power back to Australians.”

The Property Council also welcomed the move.

Chief executive Mike Zorbas said helping households electrify was a “no-brainer”.

“Electrification is the fastest and cheapest way to decarbonise our built environment,” he said.

“Electrifying homes and businesses requires steady investment and policy settings to help Australians to upgrade their homes.

“Beyond this, we need a broader plan to ‘renovate Australia’, with priority support for low-income and vulnerable households.”