How Labor’s home battery subsidies could reduce your energy bill
As the Liberal and Labor parties continue their stoush over the development of a national energy policy, everyday Australians are making it apparent that slashing energy prices is at the top of the Christmas wish list. And with so much confusion surrounding current energy pricing, Aussies are left wondering whether Labor’s push for off-grid renewable energy could drive down their bill.
In the recently released Fairfax-ipsos poll of 1,200 Australians, 47% said that when it comes to energy, they want lower energy bills more than anything else.
It was also found that 39% of voters want the priority put on reducing carbon emissions, and the remaining 13% wanted a reduced risk of blackouts to be the number one concern.
“Aussies are shouting from the rooftops that they want energy bills cut, and it’s time for the government to start listening,” Mozo Director, Kirsty Lamont said.
The Labor party thinks that part of the answer could be renewables, specifically battery storage, shifting power away from energy retailers in setting prices.
As part of the recently released Labor government energy plan, the introduction of a household battery help scheme was suggested, offering up subsidies of up to $2,000 to around 100,000 households.
This offer would be available for households with a less than $180,000 combined income, and aims to contribute to a 50% emissions reduction target by 2050.
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The proposal is similar to a South Australian scheme, which as of last month began offering subsidies of up to $6,000 to those that install batteries along with their solar power system.
Solar battery storage company Sonnen’s Managing Director, Mark Sheldon, told the ABC that the new policy in addition to current South Australian subsidies could be a game-changer for Australia’s battery market.
“We think the combination is going to be brilliant and we think it will tip the market over into becoming a commodity market,” he said.
“So we expect this to become a general installation like the solar rooftops have become.”
Will my energy bill go down with a home battery?
While it’s uncertain whether a Labor government would make it into power, we’ve crunched the numbers to help you understand how installing a solar and home battery system could help you save on your power bill.
According to Mozo data, a NSW 3-person household using the AER benchmark of 5,396 kWh a year would pay on average $2,027 for their electricity.
Now, according to Solar Market, a standard 5.5kW home battery storage system can cost up to $12,000, and a 5kW solar panel system can run around $5,000, meaning with Labor’s proposed subsidy, the upfront investment would total around $15,000.
But by going off-grid, providing and storing all the power you may need, the Climate Council suggest that most solar PV systems ‘pay for themselves’ in under a decade, and in this case, around 7 and a half years.
Whether you’re motivated by saving money or reducing emissions, the Mozo Experts Choice Energy Awards can help you find a solar-friendly plan that does both. For more options, head over to our energy cost cruncher, and select ‘yes’ next to ‘Do you have solar panels?’ to find a great deal.
