Major $2,300 cost-of-living relief for Aussies under new $2.3 billion plan

Australians could save up to $2,300 on their energy bill if they install a new solar and battery system under Labor’s latest cost-of-living election promise. If re-elected, the government would cut the cost of a typical battery by 30 per cent.

The Cheaper Home Batteries Program would come into effect for households, small businesses and community facilities from July 1, 2025. Department of Energy estimated those with an existing rooftop solar could safe $1,100 under the plan.

Those installing a new system have been tipped to save up to $2,300.

Under the plan, households, small businesses and community facilities would receive a 30 per cent discount on the upfront cost of a typical battery — a saving of around $4,000.

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“We want to make sure Australians have access to cheaper, cleaner energy,” Albanese said.

“This is good for power bills and good for the environment.”

The government’s energy rebate program was extended to offer two more $75 quarterly installments, paid from July 1.

“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,” Energy Minister Chris Bowen said.

The Property Council and Smart Energy Council have welcomed the move.

Peter Dutton is expected to release a battery subsidy policy before the election, with speculation that it will be means tested.

Adelaide teacher Ryan Parsons told Yahoo Finance he had cut his family’s $2,000 annual electricity bill down to zero since installing a solar and battery system in his home.

It cost $9,500 to install the solar panels and inverter on the family’s Forrestville home. He had to spend a further $15,000, less a $1,000 state government rebate, for a BYD battery.

But the father-of-two said it was a “no brainer” after calculating the return on investment for the solar would be less than two years, while the battery would be seven years after that.

Now, the family only takes electricity from the grid during a patch in winter, with the costs offset by money they receive by pumping power back into the grid.

“Basically, the entire rest of the year we were completely powered by the battery and our solar. That makes a massive difference. That’s really what stopped us from completely paying any bills at all,” Parsons told Yahoo Finance.

The government has estimated one in three Australian households have solar panels, but just one in 40 have their own battery.

Having a battery would help households store surplus power generated during the day, which would reduce reliance on the grid and push down cost and demand in peak periods.

Uptake will be limited to one system per home.

There will be 5 kWh to 50 kWh systems eligible for support, with total capacity not exceeding 100 kWh.

Costs and uptake would be assessed each year to ensure the subsidy has been set at the next level.