The power shift: Incentives for solar and battery installations

By promoting equitable access to solar and battery technology and fostering a skilled workforce, we can collectively advance towards a cleaner, more sustainable energy future for all Australians.

There are some remarkable shifts occurring in our energy landscape. With the inexorable rise of electricity pricing homeowners are increasingly seeking cost-effective ways to manage their energy consumption, and a significant area of focus is the integration of solar panels with residential battery storage. This trend is driven by falling installation costs and enhanced incentives, making it a pivotal moment for our industry.

Currently, only a small percentage of Australian homes equipped with solar panels have invested in battery storage. However, this scenario is poised for a dramatic change. Between now and 2025, the economic feasibility of battery installations is expected to improve significantly. This shift is influenced by the decreasing costs of batteries, longer warranty periods, and changing energy tariffs.

Recent years have seen a sharp increase in financial benefits for solar panel owners with battery storage. From 2020 to 2021, the net benefit of using stored solar energy during peak periods rose from $0.15-0.20 per kWh to an average of $0.24 per kWh, with projections indicating this could reach $0.30 per kWh by 2025. The payback period for battery investments is decreasing significantly, from 19 years in 2016 to an expected 7.5 years by 2025, making batteries a more viable option for households as the effective life of home batteries is increasing from an average of 10 years to approaching 15 years for some models.

Government incentives, such as the Australian Government's Small-scale Renewable Energy Scheme (SRES) and state schemes, further enhance the appeal of solar and battery installations by reducing initial costs. Homeowners benefit from significant cost savings by storing solar energy and avoiding high peak-time energy tariffs, making battery storage a compelling option.

However, the transition to a cleaner energy future hinges not only on technology but also on the expertise of our workforce. A robust and skilled workforce will be essential to support the growing demand for battery installations. The role of licensed electricians in ensuring safe and reliable installations is paramount. To achieve this, we will need to upskill existing tradespeople and having a pipeline of new people entering the trade is vitally important. This is why integrating Vocational Education and Training (VET) into secondary school curriculums on par with university (ATAR) pathways is needed. We can do this through enhanced VET in Schools programs, giving graduating students a head start into electrical and renewables careers by completing pre-vocational courses and work experience programs in the final years of secondary schooling. These types of initiatives can attract new talent to the industry and ensure a steady supply of skilled professionals to meet future demand.

At Master Electricians Australia, we believe that an energy policy that prioritises Consumer Energy Resources (CER) such as home batteries and solar panels are key to achieving a sustainable energy future. Making CER accessible to all households through financing schemes and targeted subsidies, with programs targeting low-income families and renters, ensures that the benefits of clean energy are widespread and equitable. Subsidies, low-cost loans, and smart energy use policies like Time-of-Use tariffs can drive this accessibility, helping households save on energy costs and contribute to grid stability.

The possibility of integration of electric vehicles (EVs) with bi-directional charging capabilities further enhances the benefits of CER, allowing excess solar energy to be stored and then used during peak periods. This not only has the potential to reduce energy costs but also alleviates pressure on the grid, supporting a more resilient energy system.

The decreasing installation costs, coupled with incentives for solar and battery installations herald a significant shift in residential energy management. Homeowners stand to benefit from reduced energy bills, enhanced energy security, and a more sustainable future. For our industry, these developments present opportunities for growth and innovation. By fostering a skilled workforce and promoting equitable access to CER, we can collectively advance towards a cleaner, more sustainable energy future.