The South Australian Government has collaborated with the Clean Energy Finance Corporation (CEFC) to deliver home battery systems to 40,0000 homes.
As part of the state government’s Home Battery Scheme, South Australian households will have access to $100 million in subsidies to pay for the installation of home battery systems from October.
Minister for Energy and Mining Dan van Holst Pellekaan has signed a memorandum of understanding (MOU) with the CEFC to deliver a $100 million funding package to support the scheme.
“In working with the CEFC we expect to be able to further assist households overcome the upfront financial barriers to accessing storage technology by offering households competitive, flexible loans where needed, in addition to the subsidies,” Minister van Holst Pellekaan said.
While the subsidy will be applied to the battery component only, households will be able to apply for finance to assist with the purchase new or additional solar panels as well as the battery system.
The subsidy will be available to all South Australian households and scaled in line with the size of the home battery system being installed.
The CEFC has supported investment in home and commercial solar PV and battery storage systems as a way to reduce energy-related emissions, according CEFC CEO Ian Learmonth.
“We are pleased that this new arrangement with the SA Government, once finalised, will allow South Australians to access tailored finance for their home energy storage systems,” he said.
The subsidy will vary depending on the size of the battery purchased, and will be capped at a maximum of $6000.
The subsidy levels and the subsidy cap are expected to reduce over time as competition in the market increases and the cost of home battery systems goes down.
Clean Energy Council chief executive Kane Thornton said South Australia was already a national leader in renewable energy, and the new battery program would be a big win for consumers and the energy storage industry.
“The battery investment program is a well-designed policy that will boost manufacturing, investment, innovation and consumer protection,” Mr Thornton said.
“The program will drive innovation, as the requirements for communications and remote control will enable deployment of household batteries which will be able to function as a future virtual power plant.”
All systems funded through the program will have a minimum five-year warranty wrap, with a minimum seven-year warranty for the battery component itself.