Battery bonus for solar homes after coal plant lifeline

New South Wales households with rooftop solar panels will have access to subsidized batteries under a state government plan that it says will save as much as $2,400 in upfront costs.

The incentives could also help reduce energy bills for more than a million households with solar panels and increase the reliability of the state grid, the government said when announcing the program on Friday.

The decision came a day after a controversial two-year bailout was thrown into Australia’s largest coal-fired generator in a bid to secure a risky power supply amid a slower-than-expected transition to renewables.

The deal with Origin Energy will keep the Eraring power station in the Hunter region running after its previously scheduled decommissioning in August 2025 to avoid potential energy shortages and price spikes.

Energy Minister Penny Sharpe said the incentives for home batteries were part of efforts to make the state’s power grid more reliable.

“This is a targeted action to support people using solar energy in taking the next step towards lowering their bills by using renewable energy,” she said.

“It also supports the state’s transition to renewable energy.

“More than one million households in New South Wales have solar panels on their roofs, and adding batteries will benefit them 24 hours a day, not just when the sun is shining.”

Official projections show New South Wales is unlikely to meet its statutory greenhouse gas emissions reduction targets of a 50 per cent reduction by 2005 by 2030 and a 70 per cent reduction by 2035.

Emissions from power generation are projected to remain a significant factor in 2030 before declining over the next decade.

For homes and businesses looking to install solar, the government said the incentive would be included in the quote for a new solar and battery system installation.

There would also be a $250 to $400 incentive for connecting a battery to a virtual power plant, a technology that aggregates thousands of home batteries to stabilize energy supplies.

The incentives will be available from November and implementation will take place through approved providers once they have been accredited.