The electrifying election promise aimed at saving you money on energy bills

A new election promise aimed at making home batteries cheaper across Australia could help households save hundreds, if not thousands, of dollars off their power bills each year.

The Albanese government has promised to invest $2.3 billion to subsidise home battery installations across the country if it’s re-elected at the May 3 election.

It would reduce the price of home batteries for households, small businesses and community facilities by 30% – appealing to the roughly one in three Australian households that already have rooftop solar.

“The sun doesn’t always shine – but households and businesses having batteries means we can keep solar energy on tap and keep energy bills down consistently,” climate change and energy minister Chris Bowen said.

But the plan has been criticised by federal opposition leader Peter Dutton, who said the plan risked only benefiting high-income households that could afford the upfront cost.

A household with existing rooftop solar could save up to $1,100 off their power bill every year, according to estimates by the department of climate change, energy, the environment and water.

It also estimated that a household installing a new solar and a battery system could save up to $2,300 a year – up to 90% of a typical family electricity bill.

The Albanese government has promised to cut the cost of home battery installations across Australia. Picture: Getty

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There have been four million rooftop solar installations across Australia, but only one in forty households have a battery, the government noted.

It said the plan would help push down peak demand with fewer homes needing to be on the grid at one time.

The discount would be delivered through the existing Small-scale Renewable Energy scheme, which has been delivering solar subsidies since 2011.

Housing Industry Association chief executive Simon Croft said the proposal was an important initiative to support homeowners cut their power bills and boost uptake of home battery installations.

“A significant barrier in the uptake of household batteries, is their large upfront costs and this scheme can be important in boosting uptake by providing homeowners with a 30% discount off the upfront costs,” he said.

Smart Energy Council chief executive John Grimes said the policy was the most important development in consumer energy for households and industry since Australians first gained access to solar panels.

“This policy will literally help millions of Australians permanently reduce their energy bills,” he said. “Less demand on the grid means fewer price peaks, a win win for all.”

The government estimated that the discount could save a household about $4,000 on a typical home battery.

Energy costs have been a big-ticket issue during the federal election campaign, with the major parties promising to cut household energy costs for voters.

About one in three Australian households already have rooftop solar. Picture: Getty

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The Albanese government has pledged to provide $150 for energy-bill relief for every household until the end of the year.

The Coalition has promised to halve the fuel excise and cut 25 cents off a litre of petrol for a year, which would save someone filling up a 55-litre car about $14 a week or more than $700 across a year, according to the Coalition’s calculations.