Home Battery Scheme
The SA Home Battery Scheme is Available to 40,000 household. South Australians can now access $100 million in State Government subsidies to help pay for the installation of a home battery systems.
With an additional $100 million provided by the Clean Energy Finance Corporation, finance is also available through RateSetter to help households pay for the balance of the subsidised home battery and new or additional solar panels if required.
The subsidy is available to all South Australians, and calculated on the kilowatt hour capacity of the home battery purchased. Furthermore, Energy Concession Holders are eligible for a higher subsidy, ensuring low-income households are supported to access the Home Battery Scheme.
Home Battery Scheme subsidy levels
|Energy concession holder||All other households|
|$600.00 per kilowatt hour (kWh)||$500.00 per kilowatt hour (kWh)|
For example, a home battery with 5kWh of storage could receive a $2500 subsidy, or $3000 for energy concession holders. While the Battery Subsidy will vary depending on the size of the home battery, the Home Battery Scheme Subsidy is capped for everyone at a maximum of $6,000 per home battery installed.
What is a home battery system?
A home battery system typically includes a battery and an inverter, paired with existing or new rooftop solar panels. Not all battery systems provide backup power. If you want a home battery system that provides uninterrupted electricity in the event of a blackout, additional equipment needs to be installed. (Ask your qualified Home Battery System Provider to include this option when obtaining a quote).
The battery system works by storing excess generation from your solar panels during the day providing stored energy to be used when the sun goes down. By storing and using more of the energy generated by your solar system, your household will draw less energy from the grid, saving you money on your energy bill.
This means lower electricity costs for the households who purchase a solar and battery system. In turn, the installation of these solar and battery systems will reduce demand on the network (especially during peak periods) lowering energy prices for all South Australians.
How much will I save?
How much you could save on your energy bills depends on a number of factors including the output of your solar system and capacity of the battery, as well as the amount of energy your household uses and what time of day you use energy the most.
It is important for all households to consider whether the expected energy savings over the life of the battery will cover the cost of purchase.
Households should seek detailed analysis from a number of qualified System Providers when obtaining quotes for a home battery system.
In the meantime, if you are concerned about your energy bills, you can find helpful advice and information about energy use in your home and how you may be able to better manage it at www.sa.gov.au/energy
Can I afford it?
The cost of a home battery system varies depending on the size of the battery and whether you need new or additional solar panels. As a guide, the cost of a home battery (before the subsidy is applied) can range between $6,000 and $13,000, including installation.
The subsidy is calculated on the kilowatt hour capacity of the battery – meaning the bigger the battery, the larger the subsidy. South Australian Energy Concession holders are able to access a subsidy of $600 per kWh. Non-concession holders can access $500 per kWh. For example, a battery with 5kWh of energy storage capacity could receive a $2500 subsidy, or $3000 if you are an energy concession holder.
Subject to credit approval, low interest loans are available to assist participating households pay for the balance of the battery and new solar panels if required. When applying for the subsidy, a loan application can be made through RateSetter – the administrator of the Home Battery Scheme subsidy and $100 million in finance provided by the Clean Energy Finance Corporation.
Use the RateSetter Home Battery Scheme calculator to calculate your loan repayments.
I don’t own my home, can I still access the subsidy?
Yes. You don’t have to own the home you live in to access the Scheme, however you will need to obtain approval from the homeowner to have the battery system installed and be able to demonstrate the homeowner’s consent to the System Provider prior to installation. Importantly, you will not be able to remove the battery system should you move out of the property.
If I get a subsidised battery, can I live off the grid?
No. A requirement of the Scheme is that eligible home battery systems are capable of being part of a virtual power plant. For this reason your home needs to be connected to the SA Power Network’s electricity network.
I have an existing solar system. Will I lose my feed-in tariff?
One important consideration when adding a battery to an existing solar system is the impact this may have on your existing solar feed-in tariff. If you have an existing solar system and receive the 44c/kwh feed-in credits under South Australia’s statutory feed-in scheme, you will no longer be eligible to receive feed-in credits if the capacity of your solar system is increased or a battery system is installed. Your eligibility to receive feed-in credits will cease from the date of your application for approval to connect the home battery system is submitted to SA Power Networks.
You may also wish to speak to your retailer about how adding a battery may affect any feed-in tariff you currently receive.
I already have solar. Can I get more panels when purchasing a battery?
Households with existing solar systems will be able to purchase new or additional solar panels if needed when purchasing a home battery system.
The subsidy only applies to the battery component of the system, however, subject to credit approval, low interest finance will be available to pay for the balance of the battery and new solar panels if required.
Am I eligible for a subsidy?
The program is being designed so that it does not exclude any household on the grid from purchasing a subsidised home battery system.
However, South Australian Energy Concession Holders will be able to access a higher subsidy, further assisting low-income households to access the Scheme.
Households can only claim the subsidy on approved battery systems supplied and installed by a system provider who is qualified under the Scheme.
How is the subsidy administered?
Unlike a rebate, where the consumer gets a partial refund on the purchase of a product, a subsidy is a sum of money given to an industry to reduce the cost of a product or service.
The South Australian Government is working with Australian peer-to-peer lender, RateSetter, to administer the subsidy and finance available through the Home Battery Scheme.
Should you accept a quote for an eligible home battery system, the System Provider will provide you with a link to the RateSetter website where the subsidy will be applied and you can apply for finance if required. This can be done over the phone, if you don’t always have access to a computer.
The subsidy is taken off the cost of the home battery system, and given to the System Provider once the system is installed at your home.
How much can I borrow?
The subsidy from the State Government will only apply to the Home Battery component of the system purchased.
Subject to credit approval, low interest loans are available to assist participating households pay for the balance of the home battery storage system, as well as new or additional solar panels if needed.
When applying for the battery subsidy, a loan application can be made through RateSetter, the administrator of the Government’s Home Battery Scheme subsidy and $100 million in finance provided by the Clean Energy Finance Corporation.
Can I access the subsidy more than once?
Yes. If you own multiple properties, you can access the Home Battery Scheme’s Subsidy more than once. However, the property must be a residential property and you can only access the battery subsidy once per property.
You will be required to provide the National Metering Identifier (NMI) of the property when applying for the Home Battery Scheme subsidy (this can be found on your bill).
How do I access the subsidy if I don’t have a computer or the internet?
If you don’t always have access to a computer or the internet, you will not be excluded from accessing the Scheme.
You can call a Home Battery Scheme Approved Provider on 8370 9555 for any enquiries or to Request a Quote for the right home battery system for you.
For every quote you obtain from a qualified System Provider, a ‘Quote Record’ will be generated in the RateSetter system, ready for you to apply for the subsidy should you accept their quote.
The System Provider will contact you to ask if you wish to proceed with the quote and apply for the subsidy. If you don’t have an email address or access to a computer, the System Provider will ensure that a paper copy of the subsidy application form is posted to you.
If you intend on applying for finance you will need to do this online. Your chosen System Provider will come to your home with a tablet or mobile device and step you through the subsidy application process and assist you to apply for finance.
Once your home battery system is installed the System Provider will ask you to confirm you are satisfied with the installation. This can be done while the System Provider is at your home or over the phone with RateSetter. Only after you are satisfied will the subsidy be released to the System Provider.
If you have any questions about your Quote Record, the subsidy application process or how to apply for finance you can call RateSetter on 1300 396 078.
How big is a battery storage system and where will it be stored on my house?
Typically a home battery system is between 30 – 125 kilograms, and between the size of a microwave and the ‘outdoor’ part of a split cycle air conditioning unit, depending on the energy storage capacity. Home Batteries can be installed outdoors or indoors and they are often mounted to the wall, but can also be installed on the floor. Call 8370 9555 for more advice about the qualifying Home Batteries and their installation.
Will the battery work in a blackout?
The main benefit associated with having a home battery system is energy independence – being able to store the electricity generated by your solar panels for use during the evenings and mornings when electricity is at peak demand.
Not all battery systems offer ‘blackout protection.’ Households looking for backup power during an outage will need to request this feature when talking to a qualified System Provider.
Am I eligible for an Energy Concession? How do I apply for one?
Eligible South Australians on low or fixed incomes can apply for help with the cost of energy bills. The concession amount is indexed each financial year. For 2018-19, you may be eligible to receive up to $223.01 to cover both electricity and gas payments (including LPG bottled gas). For more information, visit: www.sa.gov.au/topics/care-and-support/financial-support/concessions/energy-bill-concessions
It is also strongly recommended that households contact their retailer when facing difficulty paying electricity bills. Retailers will work with customers regarding repayment of their bills, and may be able to offer a discounted rate if requested.
More information about the eligibility criteria and how to apply can be found online at www.sa.gov.au/topics/care-and-support/financial-support/concessions/energy-bill-concessions Alternatively, call the Concessions SA hotline on 1800 307 758.
Will I have to change my energy retailer?
Not necessarily. Many System Providers will be offering battery systems which are not tied to a program operated by a particular energy retailer.
However, it is anticipated that energy retailers who offer eligible home batteries as part of a virtual power plant program may apply to become qualified System Providers. If you choose to purchase a home battery system that will be part of a virtual power plant, a condition of purchasing the home battery system may be that the System Provider becomes your energy retailer.
If you are interested in signing up to a virtual power plant program, read the terms and conditions carefully. As part of a virtual power plant you will need to allow the operator to access energy from your battery at certain times. Depending on the terms and conditions of the customer agreement, you may be paid for the energy the operator uses from your battery.
Can the battery be re-sold after being purchased with a subsidy?
The objective of the Home Battery Scheme is to assist customers with the upfront cost of purchasing a home battery system, reduce demand on the network and in turn, lower energy prices for all South Australians. It is not intended that customers on-sell products for which they have received a subsidy. Home Batteries cannot be removed from the installation site except for maintenance or repair; or for safety reasons; or to dispose of the battery after the expiry of all warranties; or with the written consent of the SA Government.
If my Energy Concession stops, will I need to pay back part of the subsidy?
No. The subsidy will be determined by your eligibility at the time of purchase.
What is a virtual power plant?
A virtual power plant is created by a network of home solar panels and battery storage systems all working together to generate, store and feed energy back into the grid.
Energy from the home solar panels and battery systems installed as a part of a virtual power plant mainly provides electricity for the house on which it’s installed. However, energy generated or stored by the system can be automatically dispatched to the grid by the operator. This dispatched energy can help power the rest of the state.
How is the Home Battery Scheme different to South Australia’s Virtual Power Plant, announced in February?
The Home Battery Scheme is quite different to South Australia’s Virtual Power Plant and other virtual power plant programs currently being trialled in South Australia.
A key difference between the South Australian government’s Home Battery Scheme and the SA Virtual Power Plant is that households accessing the Home Battery Scheme will be able to choose from a variety of home battery storage systems and they will own the system.
Tesla with support from the South Australian government is developing a network of potentially 50,000 home solar panels and Powerwall battery systems across South Australia – all working together to form the world’s largest virtual power plant.
Beginning with trial phases involving 1,100 SA Housing Trust properties, home energy systems comprising of a 5kW solar PV system, 5kW/13.5kWh Tesla Powerwall home battery and a smart meter are being installed at participating households.
Subject to the success of the trials and private investment, the full program will be rolled out to 24,000 public housing properties and 25,000 private properties from mid-2019.
Households interested in participating in the Virtual Power Plant program can register their interest at www.energyratingsystems.com.au/virtual-power-plant/
I’ve signed up to a virtual power plant, am I eligible for the subsidy?
Yes, if the operator of the virtual power plant has been approved as a qualified System Provider and the home battery system meets the Equipment Eligibility Criteria of the Scheme, and you will own the battery system.
However, the subsidy cannot exceed the amount you pay for the system.
You should enquire with the operator of the virtual power plant for more information.
Can I get the subsidy for a battery installed before the Scheme launched?
Batteries purchased and installed prior to October 29, 2018 will not be eligible for the subsidy.
Do I need council approval to install a battery?
If you live in a multi-storey residential flat or apartment building, where a dwelling sits vertically above another dwelling, you may need council approval to install a home battery system. Enquire with your local council as to whether a development approval is required prior to purchasing a home battery system. It is also recommend you seek written approval from your body corporate and/or building manager for the installation prior to agreeing to the purchase of a home battery system.