Renewable Energy (Electricity) Amendment (Cheaper Home Batteries)

Current status

This bill did not become law and is no longer proceeding.

Policy area

Climate, energy & environment

What does this bill do?

Home batteries would become eligible for the same certificate incentive that already helps cut upfront costs for small solar and other renewable systems.

Why was it introduced?

Home batteries were left out of the small-scale certificate scheme even though they are prohibitively expensive and only 1.3% of households had installed one. The bill lets home batteries earn the same certificates as small solar systems, cutting upfront costs and aiming to lift battery take-up.

Broader context

By 2023, the Small-scale Renewable Energy SchemeThe federal program that gives certificates for eligible small renewable systems, which the bill would extend to home batteries. was already cutting the upfront cost of solar and other small renewable systems and had helped drive rooftop solar into about one-third of Australian homes, but home batteries were still excluded even as power bills and other household costs climbed. The bill responded by proposing the same certificate discount for batteries to lower purchase prices and lift take-up, while later budget measures turned instead to cheap loans and the bill itself was ultimately removed from the Notice PaperThe parliamentary list of business for the House or Senate; if a bill is removed from it, the bill stops progressing. without becoming law.

Key criticism

The main case against the bill is that a battery subsidy can become expensive fast, distort demand and force later rule changes if take-up is much stronger than forecast. No party represented in the debate opposed the bill, so the criticism recorded here is mostly a later implementation and cost concern raised by analysts, commentators and battery installers rather than broad parliamentary opposition.

Who supported it?

Helen Haines MPAn elected parliamentarian; the bill papers note that Dr Helen Haines was the member for Indi. introduced this bill. Speeches supporting it came from some crossbench members.

Introduced in House 27 Mar 2023
Failed in House 14 Nov 2023
Did not reach Senate
Did not become law

Did it become law?

No

The bill did not complete passage through Parliament.

Final passage

No final passage

The bill has not completed passage and is no longer proceeding.

Time before failure

232 days

From introduction to the final recorded step before the bill stopped proceeding

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. Home batteries would become eligible for the same certificate incentive that already helps cut upfront costs for small solar and other renewable systems.

  2. Home battery owners could hand their certificates to an installer or other agent so the value can be taken off the purchase price.

  3. Only home batteries installed by 31 December 2030 could get certificates, and each battery would have to claim them once within 12 months of installation.

  4. The number of certificates for a home battery would depend on how much electricity it is expected to discharge each year and a set number of years, with the technical details left to regulations.

  5. The Minister would have to start a review between four years after commencement and 1 July 2029, with a final report due within six months after the review begins.

Show source excerpts
  1. This Bill amends the Renewable Energy (Electricity) Act 2000 to add home batteries as an eligible technology to create small-scale technology certificates (STCs) under the Small-Scale Renewable Energy Scheme (SRES).
    Renewable Energy (Electricity) Amendment (Cheaper Home Batteries) explanatory memorandum
  2. This is consistent with the existing legislation governing the creation of certificates under other eligible technologies under the SRES. The purpose of this clause is to allow the owner of a battery to transfer the right to create certificates to the installer of the home battery to reduce the effective installation cost of the battery.
    Renewable Energy (Electricity) Amendment (Cheaper Home Batteries) explanatory memorandum
  3. As in the existing scheme, home batteries can only create STCs if they are installed by 2030. Home batteries must create STCs within 12 months of installation and can only create certificates once, for the duration of their deeming rate.
    Renewable Energy (Electricity) Amendment (Cheaper Home Batteries) explanatory memorandum
  4. This Bill would retain the existing legislative architecture for the creation and transfer of STCs, simply extending it to home batteries. The ‘deeming rate’, the period for which a home battery can create certificates is set at 15 years, until 2027 at which point it is calculated as the number of years until 2041. The number of certificates a home battery can create each year is determined by the megawatt hours of electricity it will discharge over the course of a year, as set out in regulation.
    Renewable Energy (Electricity) Amendment (Cheaper Home Batteries) explanatory memorandum
  5. The review must commence no sooner than 4 years after the commencement of the bill, and no later than 1 July 2029. It must involve public consultation, the final review must be handed to the Minister within 6 months after commencing the review.
    Renewable Energy (Electricity) Amendment (Cheaper Home Batteries) explanatory memorandum

Broader context for this bill

By 2023, the Small-scale Renewable Energy SchemeThe federal program that gives certificates for eligible small renewable systems, which the bill would extend to home batteries. was already cutting the upfront cost of solar and other small renewable systems and had helped drive rooftop solar into about one-third of Australian homes, but home batteries were still excluded even as power bills and other household costs climbed. The bill responded by proposing the same certificate discount for batteries to lower purchase prices and lift take-up, while later budget measures turned instead to cheap loans and the bill itself was ultimately removed from the Notice PaperThe parliamentary list of business for the House or Senate; if a bill is removed from it, the bill stops progressing. without becoming law.

  1. 2023

    Small-scale certificates were already boosting rooftop solar, but not home batteries

    The explanatory memorandum said the existing Small-scale Renewable Energy SchemeThe federal program that gives certificates for eligible small renewable systems, which the bill would extend to home batteries. had helped push rooftop solar into around one-third of homes while batteries remained outside the certificate incentive.

    Explanatory memorandum ↗
  2. 27 Mar 2023

    Cheaper Home Batteries bill is introduced

    The bill was introduced to let home batteries create small-scale technology certificatesTradeable certificates created when an eligible system is installed; in this bill, home batteries would create these certificates so the upfront price can be discounted. so households could assign them to installers and receive an upfront discount, as already happens with solar systems.

    Parliamentary timeline ↗
  3. 27 Mar 2023

    Power bill rises sharpened the push for cheaper home batteries

    In the second reading speech, Helen Haines argued households facing rising living costs and power bills expected to jump 30 per cent by winter needed cheaper battery storage to cut energy costs.

    Hansard ↗
  4. 09 May 2023

    Federal budget backs cheap electrification loans instead of a battery rebate

    The 2023 budget offered $1 billion in low-interest household electrification loans for upgrades including batteries, showing the government was supporting battery uptake through finance rather than this rebate model.

    Australian Financial Review ↗
  5. 14 Nov 2023

    Bill is removed from the Notice PaperThe parliamentary list of business for the House or Senate; if a bill is removed from it, the bill stops progressing.

    The parliamentary record shows the bill was removed from the Notice PaperThe parliamentary list of business for the House or Senate; if a bill is removed from it, the bill stops progressing. under standing order 42A parliamentary rule used here to remove the bill from the Notice Paper., ending its progress without the proposed battery certificate scheme being enacted.

    Parliamentary timeline ↗

How did it move through Parliament?

House Senate
Introduced 27 Mar 2023

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 27 Mar 2023

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Removed from Notice PaperThe parliamentary list of business for the House or Senate; if a bill is removed from it, the bill stops progressing. 14 Nov 2023

The bill was removed from the House Notice PaperThe parliamentary list of business for the House or Senate; if a bill is removed from it, the bill stops progressing. under standing order 42A parliamentary rule used here to remove the bill from the Notice Paper., ending its recorded parliamentary progress.

Removed from the Notice PaperThe parliamentary list of business for the House or Senate; if a bill is removed from it, the bill stops progressing. in accordance with (SO 42)

The main case against this bill

The main case against the bill is that a battery subsidy can become expensive fast, distort demand and force later rule changes if take-up is much stronger than forecast. No party represented in the debate opposed the bill, so the criticism recorded here is mostly a later implementation and cost concern raised by analysts, commentators and battery installers rather than broad parliamentary opposition.

Criticism was limited and focused mainly on cost control and rollout effects, not the goal of cheaper batteries.

Budget blowout and cost to taxpayers

A major concern is that generous battery certificates could cost far more than expected if demand surges, leaving taxpayers to fund a much larger program or forcing the government to scale it back and rewrite the rules.

Raised by Later Australian Financial Review reporting and commentary drawing on program cost and uptake data Source ↗

Short-term market disruption for installers

Another concern is that announcing a future subsidy can make households delay purchases until the rebate starts, causing a sales slump beforehand and creating cash-flow and planning problems for the installers expected to deliver the scheme.

Raised by Solar installation businesses reported by the Australian Financial Review Source ↗

Recorded votes

No recorded votes were found before this bill stopped proceeding.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Helen Haines

Independent • MP 27 Mar 2023

Haines supports the bill and says it should make home batteries cheaper so households can cut power bills, improve energy security, and reduce emissions.

Read in Hansard ↗
Lead non-major voice Supports

Allegra Spender

Independent • MP 27 Mar 2023

Spender supports the bill and says cheaper home batteries will help households cut energy bills while speeding up electrification and emissions reductions.

Read in Hansard ↗

All speeches by bloc

Minor parties and independents

2 speakers · 2 support

Full record

Full chat