A proposal in New South Wales (NSW) to heavily subsidize batteries for households with rooftop solar systems is being touted as a crucial step towards transitioning to renewable energy. This initiative, announced on May 24, aims to help over one million homes with solar panels save up to $2400 (US$1590) on the upfront costs of installing a battery.
This move comes shortly after a decision to extend the operation of Australia’s largest coal-fired power plant, the Eraring plant in the Hunter region. The agreement with Origin Energy, which could amount to $450 million (US$298 million) in taxpayer funds, will keep the plant operational beyond its previously scheduled closure in August 2025.
Energy Minister Penny Sharpe emphasized that the incentives for household batteries are part of a broader strategy to enhance the reliability of the state’s power grid amidst the transition to cleaner energy sources. “It’s just part of the suite of activities that we’re undertaking as NSW transitions our electricity grid to a cleaner energy future,” she stated.
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Despite facing criticism from environmental groups and renewable energy advocates, Minister Sharpe defended the Eraring deal, stating that it is necessary for the state’s transition to renewables. She emphasized that the government’s goal is not to prolong the operation of coal-fired power plants any longer than necessary.
“I genuinely believe this is the best thing for NSW, it buys us the insurance we need when we get on with the transition,” she affirmed.
Official forecasts indicate that NSW may struggle to meet its targets for reducing greenhouse gas emissions by 2030 and 2035. Emissions from power generation are expected to remain a significant contributor to emissions levels in 2030 before decreasing in the subsequent decade.
Under the battery subsidy program, households and businesses interested in installing solar panels will receive incentives that are incorporated into quotes for new solar and battery systems. Additionally, there will be a $250 (US$165) to $400 (US$265) incentive for connecting a battery to a virtual power plant, a technology that aggregates home batteries to stabilize power supply.
These incentives are set to be available from November onwards, with the implementation carried out by approved suppliers following accreditation.
Rewiring Australia, an organization advocating for rapid decarbonization through electrification, expressed support for the subsidy. Executive director Dan Cass stated, “Incentivizing households and businesses to adopt batteries means more affordable solar power in the grid and reduces our reliance on harmful fossil fuels.”
However, Solar Citizens, a community group promoting solar power, criticized the government for sending conflicting messages on energy policy. “Does it want to prop up polluting, outdated fossil fuel power and allow companies to penalize households… or does it want to further advance towards the direction of today’s announcement?” questioned chief executive Heidi Lee Douglas.
