Bowen says design of battery scheme leaves “zero chance” it will increase electricity prices

Federal Labor’s Cheaper Home Batteries policy will include an important tweak in its design to ensure there is “zero chance” the potentially game-changing rebate will put any upward pressure on retail electricity prices, federal energy minister Chris Bowen has confirmed.

Having heeded industry pleas to subsidise home batteries through the existing federal Small-scale Renewable Energy Scheme, Bowen is doubtless keen to avoid fresh claims that the certificate-based SRES will be paid for through customer bills.

This criticism of the SRES – also framed by detractors as the poor subsidising the rich – was debunked over a decade ago, when a study demonstrated that the cost of small-scale technology certificates (STCs) used to help pay for rooftop solar is minimal, and offset entirely by the reduction in wholesale electricity prices that solar has delivered.

These days, the cost of the SRES is estimated to account for around 2 per cent of a retail electricity bill, as part of the also very small “environmental costs” segment of the bill stack.

But with the high cost of living dominating debate in the lead up to the election, and energy prices being framed as a one of the main offenders, the Albanese government is treading extra carefully.

Speaking at the Smart Energy Conference in Sydney on Wednesday, Bowen highlighted a key difference in the way the SRES will apply to home batteries, where the government will buy the STCs generated through battery sales.

“We announced the policy of introducing household batteries into the SRES, with the government paying for the certificates,” Bowen told the conference.

“This is a $2.3 billion vote of confidence in the decisions that Australian households want to make. Some have said is the biggest and best and most positive intervention in renewable energy since the SRES was actually invented. I’m not here to disagree.”

Speaking on the sidelines of the conference later on Wednesday morning, Bowen reiterated why this decision was made.

“Government will purchase the certificates because we want to ensure that there’s absolutely zero chance of any impact on energy bills in a negative way,” he told reporters.

“It’s a big decision we’ve made. We also had the view that this was the best and easiest way of implementing the policy to ensure that Australians get all the benefits of improved storage, but the issue is dealt with appropriately. So it’s a big investment by the government.”

If you wish to support independent media, and accurate information, please consider making a one off donation or becoming a regular supporter of Renew Economy. Your support is invaluable.