Low-emissions metals and other industries the federal government views as vital to Australia’s net zero future have locked in funding in the federal budget, but household-level energy opportunities have been missed again.
A total of $3 billion has been earmarked to support green aluminium and iron endeavours in Tuesday’s budget.
But households keen to soak up their excess rooftop solar power have been left disappointed, with no sign of subsidies, cheap loans for batteries, or other options that could help Australians better manage their energy use.
Energy cost pressure has been a thorn in the federal government’s side since it committed to cut electricity bills by $275 at the last election.
There were few surprises when it committed to extending its power rebates for another year.
Eligible Australian households and small businesses can expect $75 off their electricity bills per quarter until December 2025, at a cost of $1.8 billion over two years.
The ACCC’s Inquiry into the National Electricity Market will also be extended for another 12 months.
Households miss out on low-emissions tech help
Clean energy advocates have been campaigning for government handouts to bring down the steep up-front cost of household batteries, a measure they say will ease pressure on the electricity grid and do more to permanently lower power bills than temporary rebates.
Clean Energy Finance director Tim Buckley hopes that leaving distributed energy resources (DER) out of the budget means it might be part of an election package from federal Labor, potentially funded from the extra $2 billion given to the Clean Energy Finance Corporation (CEFC) in January.
“DER can be targeted to people most in need and leverage the existing grid capacity, rather than having to wait for massive capital cost blows, and come at a lower investment cost to the government,” he told Renew Economy.
Buckley suggested spending $500 million on smart meters for 1 million low income households, and potentially batteries as well, to allow those people to start benefiting from negative midday power prices.
It would come at a much lower capital cost to the federal budget, make use of existing grid capacity, and be cheaper than the increasingly expensive proposed and under-construction transmission lines paid for by the $19 billion Rewiring Australia fund, he says.
But the absence of any DER support in the budget dismayed Sawsan Alfayadh from Renew Australia For All, who lamented that the nation needed more than the “temporary bandaid”.
“Bill relief might help families for a quarter, but investing in clean energy solutions will break the cycle of high power bills for generations,” she said in a statement.
Clean Energy Council chief Kane Thornton echoed that call.
“Four million Australians have rooftop solar, but only around 180,000 are doubling their savings with access to a home battery,” he said.
“That means that 95.5 per cent of solar households, already saving $1500 on average on their power bills thanks to their panels, could be saving even more through home energy storage.”
Energy Consumers Australia CEO Brendan French noted that while the rebate is welcome now, it doesn’t tackle the root causes of why electricity is expensive, suggesting one option is to implement national minimum energy efficiency standards for all rental properties in Australia.
He also lauded the move to extend an energy efficiency grants program for small and medium businesses.
“Helping small businesses to replace inefficient appliances and improve space and water heating systems, will enable them to save money on their energy bills in the long term,” he said in a statement.
“Longer term we would like future incentives for small businesses to be included as part of a long-term plan to ensure their needs are met in the energy transition.”
Green metals lock in funding
The Labor government’s fourth and possibly last budget, given a federal election is due by May 17, confirmed funding for several measures nestled under its broader Future Made in Australia plan to revitalise the industrial base for a net zero future.
Tax incentives for critical minerals and hydrogen have already been locked in and Tuesday’s budget confirmed $2 billion over 19 years from 2024/25 for aluminium smelters switching to clean energy.
About $1 billion over seven years has been earmarked for capital grants for low-emissions iron projects, including up to $500 million to transform the Whyalla Steelworks.
The federal government and the South Australian government had already committed to bailing out the troubled steelworks.
A $2 billion capital injection into the government’s green bank, the Clean Energy Finance Corporation, was also confirmed, a move expected to unlock $6 billion in extra private investment in renewables and low emissions technologies.
“This agenda is about recognising our future growth prospects lie at the intersection of our industrial, resources, skills and energy bases and our attractiveness as an investment destination,” Treasurer Jim Chalmers said in his budget speech.
“So we can grasp the jobs and opportunities of the net zero transformation.”
AAP, with additional reporting from Renew Economy’s Rachel Williamson.
