WA set to get residential battery boost, in Labor campaign promise
Residential battery installations in Western Australia look set to get a major boost, after a campaign promise made by WA Labor leader Roger Cook on Saturday. The policy would see residential battery customers receive either a $5000 or $7500 grant, lower income households access to interest-free loans, and $50 million allocated to support local battery system assembly.
WA is joining most other states in introducing a subsidy program for residential batteries. WA Premier Roger Cook announced the Residential Battery Scheme last weekend describing it as the most generous program of its type in the country.
To deliver the program, the Cook government will have to be successful at the state’s March 8 election, but with its current huge majority in the WA Parliament it seems very likely that they will be returned for a third term. The opposition Liberal and National parties currently hold just six seats in WA’s lower house, needing to flip 20 electorates to be in the position to form government.
In total, Labor expects 200 MWh of battery capacity to be added under the program.
Battery Scheme details
Looking more closely at the program’s details, the “most generous” claim seems pretty accurate. In summary, the $387 million subsidy package involves:
◾Up to $5000 in grant money for each Synergy customer – which applies to the Perth metropolitan area
◾Up to $7500 in grant money for each Horizon customer – in regional WA
◾Interest-free loans of up to $10,000 for low income households, capped at 20,000
◾ $50 million to support battery assembly, through the $50 million Battery Manufacturing Program
WA Labor said that the program will result in household savings of $1500 a year, along with boosting jobs.
For batteries to be eligible for the subsidy they must “meet Australian and local grid standards”. This, WA Labor said, includes “recognised brands” along with “locally manufactured batteries.” The size of the grant will be determined by the size of the battery.
The interest-free loan component will be means-tested and can go towards both the battery purchase cost and apply additionally to the cash subsidy – and with a $10,000 limit set for the loans, qualifying households appear likely to be able to have a battery installed with a modest up-front investment. The loan period can be up to 10 years.
The opportunity
There is a big “time shifting” opportunity for WA households under Synergy’s tariff structures. Under its Distributed Energy Buyback Scheme (DEBS), solar households receive $0.10/kWh for discharge into the grid between 3pm and 9pm, and $0.02/kWh before 3pm.
By contrast, on its flat rate Synergy customers are charged close to $0.32/kWh. On its time-of-use tariff, called Midday Saver, households are charged a little more than $0.08/kWh between 9am and 3pm, $0.23/kWh between 9pm and 9am, and a whopping $0.52/kWh during peak hours of 3pm to 9pm.
The ability to store electricity produced on its roof in the morning for use in the home in the late afternoon and evening will deliver huge savings for homeowners. Coupled with a tariff switch and an appropriately sized battery, it could see some households rarely pay more than $0.08/kWh for their grid power. Although it should be noted that all Synergy tariffs include an additional supply charge.
The Synergy variable (ToU) tariff
For the WA government, which owns both the utility and the electricity network operator in the state, the additional batteries will likely reduce electricity demand during peak hours – which is the most expensive to supply. It will also assist with the challenge of “minimum load”, which threatens to destabilise the electricity network during the hours of peak solar production.
“Revolutionise our electricity grid”
"Supercharging household batteries will revolutionise our electricity grid, allowing us to ramp up renewable energy, slash power bills and create quality manufacturing jobs for WA’s future,” said Roger Cook in a statement. “As we transition to a clean energy future, household batteries will play a crucial role in supporting more renewable energy in the grid and keeping our power system affordable and reliable.”
When announcing the program, at WA Labor’s re-election campaign launch, Cook elaborated on the important role the government sees for rooftop solar in the state’s energy transition.
“It [rooftop solar] continues to grow by the equivalent of two gas-fired power plants every year, true grid-scale power generation. The key is to capture more of it,” Cook said at his party’s campaign launch, as reported by the Australian Financial Review. “We’re one of the global capitals of rooftop solar. We can also be a world leader in household batteries.”
The Smart Energy Council has welcomed the battery program. “The more batteries that absorb excess energy from rooftop solar will not only reduce power bills for households but provides greater grid stabilisation,” said Charlie Caruso, the general manager of the Smart Energy Council in WA.
If returned to government, Labor would bring the Residential Battery Scheme into effect on July 1.