Billions for batteries as solar expands: Australia adjusts support scheme

Rapid growth in installed capacity at small, decentralised photovoltaic power plants has been evident around the world in recent years. Australia is no exception and is also grappling with a similar phenomenon. The government is now expanding support for households and small businesses to purchase battery storage systems. Batteries are expected to help integrate solar power more effectively and reduce rising electricity supply costs.

As the share of intermittent renewable energy sources—primarily solar and wind power plants—increases, so does the importance of flexible resources and energy storage in the grid. Storage in particular has seen strong growth in recent years, both in large battery storage facilities and in smaller systems for households and small commercial customers.

Various subsidy schemes in different countries are also helping to drive the development of battery storage. One of them is a subsidy scheme in Australia that, according to Argus, is set for a major expansion. Its budget is expected to more than triple, from the current 2.3 billion Australian dollars to 7.2 billion Australian dollars, equivalent to almost CZK 100 billion.

Australian Energy Minister Chris Bowen announced the expansion a few days ago in response to strong demand. According to Argus, his government is also facing mounting political pressure over rising electricity prices for end users. Electricity bills are increasing despite the boom in rooftop solar installations, with one in three Australian households already having a solar system. The government is therefore apparently hoping that faster development of battery storage will help rein in rising electricity bills.

Australia offers support covering around 30% of the investment costs of a battery system with capacity of up to 100 kWh. According to Minister Bowen, more than 150,000 applicants have already taken advantage of the scheme. The government says the expanded subsidy scheme should enable the construction of up to two million battery storage systems with a capacity of 40 GWh by 2030.