PM’s $2.3bn battery plan ‘confirmation energy prices will rise’: Dutton

Peter Dutton says Labor’s home battery proposal, which will see taxpayers contribute $4000 for installations, will take money from lower-income households to benefit high-income earners.

Anthony Albanese will vow to make it about 30 per cent cheaper for Australian households to install batteries that are charged by energy generated by rooftop solar panels. Picture: Newswire

Taxpayers will contribute $4000 for an average household battery installation under a $2.3 billion election commitment by Anthony Albanese, with Labor promising the policy will push electricity prices down for “everyone”.

The Prime Minister will on Sunday make a speech in the Brisbane electorate of Griffith and vow to make it about 30 per cent cheaper for Australian households to install batteries that are charged by energy generated by rooftop solar panels.

The installation cost of an 11 kilowatt battery - a size used for a typical family home - would be brought down to about $9300.

The subsidy also applies for the first 50 kilowatts of a 100 kilowatt battery, which would be enough power for a small business, with the cost to taxpayers for a battery of this size to be about $15,000.

With Labor aiming to win Griffith from the Greens, Mr Albanese said the policy was “good for power bills and good for the environment”.

“Labor’s No.1 priority is delivering cost of living relief,” Mr Albanese said.

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

Peter Dutton says Labor’s proposal would take tax money from lower-income households to only apply to high-income households and that the announcement is “confirmation that electricity prices are certain to go up” under a re-elected Albanese government.

“The point that I’d make is that, for $10,000 for a battery, maybe that’s the cost after this subsidy – I think you’re talking about higher-income families being in a position to pay for that,” the Opposition Leader said.

“And I just don’t know that the next-door neighbour, who can’t afford to pay for that battery, is going to subsidise the battery for me or for you on higher incomes.

“I think what that is, though – and this a really important point – the government’s announcement today is confirmation that electricity prices are certain to go up higher under a Labor government.

“And the Prime Minister’s broken promise of $275 – the Labor lies are racking up and stacking up under this government.”

Anthony Albanese with Labor’s candidate for the seat of Griffith, Renee Coffey. Picture: Dan Peled / NewsWire

After last week walking away from the party’s pre-election modelling showing electricity bills would reduce by $275, Labor is claiming this policy will help cut household power bills for all Australians.

A household with existing solar panels could save up to $1100 off their power bills every year by installing a battery, according to analysis by the Department of Climate Change, Energy, the Environment and Water.

The analysis shows a household that installs a new solar and battery system could save up to $2300 a year, or 90 per cent from a typical family electricity bill.

“It will help push down peak demand with fewer homes needing to be on the grid at one time, pushing down prices for everyone,” according to a press release distributed by Labor.

“Labor’s plan is in stark contrast to Peter Dutton, who will cut critical services to pay for his $600bn nuclear plan, driving up household energy bills by up to $1200.”

A third of households have solar panels but only one-in-40 have a battery, with Labor arguing the policy will take pressure off the increasingly unreliable grid.

Labor is expecting one million new batteries to be installed by 2030.

The 30 per cent discount for battery installation will be delivered through the Small-scale Renewable Energy Scheme, which has been subsidising solar panels since 2011.

The cost to taxpayers will depend on the size of the system, with the value of the subsidy to decline over the next five years amid expectations battery costs will fall.

Mr Albanese last week distanced his government from the RepuTex modelling he took to the 2022 election, despite it being the document that gave Labor its 43 per cent emissions reduction and 82 per cent renewables targets.

Mr Bowen said “we’re on track to hit 82 per cent renewable energy by 2030”, in defiance of leading energy experts and business groups arguing the goal will not be achieved.

“The sun doesn’t always shine but households and businesses having batteries means we can keep solar energy on tap and keep energy bills down consistently,” Mr Bowen said.

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

It is another major announcement from Labor without an offset, with the budget revealing spending over the forward estimates had increased by a net $35bn.

This does not include major off-budget spending promises, including $16bn for to wipe 20 per cent off the value of student loans.