The campaign battle over the next step to cheaper power bills

March 14, 2025 journo

Independent MP Sophie Scamps has challenged the major parties to address the “missing piece of the puzzle” for rapidly rising power bills, releasing her plan to slash the price of household batteries as the price of electricity becomes a crucial election issue.

Scamps, who along with other teal MPs could hold the balance of power after the upcoming election due in May, on Saturday announced a policy for federal subsidies of up to one-third of the price of a household battery to supercharge uptake of the costly technology.

Independent member for Mackellar Sophie Scamps with Avalon residents Ian and Michelle Millner, who have solar panels and household batteries.Credit: James Brickwood

In a week when it was announced that annual power bills were set to rise by as much as $200 in NSW and $68 in parts of Victoria, after which Energy Minister Chris Bowen and Opposition Leader traded barbs, ways to cut costs have been in the spotlight.

Both major parties have publicly said they have been working for months on household battery policies for release during the upcoming federal election campaign. Sources from the electricity industry speaking on the condition of anonymity said the major parties were waiting for their opponent to reveal a plan in a bid to respond with a bigger headline-grabbing policy.

“Batteries are the most important energy technology of the 21st century. They are reliable, and they are rapidly getting cheaper. I want every Australian to have the opportunity to reduce their power bills to near zero with the use of home batteries,” Scamps said.

Her plan would subsidise up to $5000 for the cost of a battery, and the total cost of the scheme would be capped at $1.5 billion a year, equating to a 10-fold increase in the current uptake of household batteries.

Scamps said battery policy would be a key issue in determining which party she would support in the vent of a hung parliament. However, it is unclear if the government or opposition will commit to household support.

Batteries store surplus power generated by solar panels during the day then supply it to households when electricity prices peak in the evening and can cut more than $1000 off power bills.

The Smart Energy Council calculates that an average home in NSW could save about $1100 in electricity costs a year with a battery, while Victorians could snip about $650 off their bills.

But uptake is relatively low despite NSW’s existing subsidy for household-battery buyers of up to $2400, and Victoria’s four-year interest-free loan of up to $8800.

The purchase price of a battery large enough for a family home is between $10,000 and $15,000 – and installation costs are also thousands of dollars.

Just 300,000 homes have installed a battery, compared to the high uptake of solar panels that are on 4 million of Australia’s 11 million homes.

“The best way for government to provide cost-of-living relief is to help families and businesses install solar and batteries, and batteries are the missing piece of the puzzle,” Scamps said.

John Grimes, chief executive of the Smart Energy Council, said “the best way to help households slash their energy bills is through solar and battery”.

The Council advocates for subsidies or grants to cut the purchase price of a battery, rather than loans, to drive greater uptake of batteries, which they argue cut the overall demand on the electricity grid at peak times and help lower power prices for all households, including those without batteries.

Ian and Michelle Millner, who live in Scamps’ electorate of Mackellar on Sydney’s Northern Beaches, bought a 1-kilowatt battery system two years ago to complement their 17-kilowatt solar panel array, as well as to charge their electric vehicle.

Ian Millner says while the price of a battery was high, he was happy with the investment.Credit: James Brickwood

The battery system cost about $10,000 to buy and $5000 to install, and Ian Millner said his recent quarterly power bills have ranged from $80 to generating $64 in credit.

He conceded the battery was expensive but valued that he was able to help reduce his reliance on the grid, which is still comprised of more than 50 per cent coal power, and help reduce emissions and global warming.

“I’m putting my money where my mouth is,” Millner said. “I believe we have a global problem, and I’m trying to assist in making the shift.”

The government has committed to support large-scale wind and solar farms to raise renewables to 82 per cent of the grid, and announced more than $1 billion to support for households and apartments electrification, including low interest loans for batteries and solar panels.

Opposition energy spokesman Ted O’Brien criticised the “government’s inability to ensure affordable and dispatchable power”. The Coalition has pledged to scale back the renewable rollout and instead build seven nuclear plants.

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