Saying that distributed battery storage "will revolutionize our energy system," the Australian Greens are looking to advance deployment through a new subsidy scheme. The Greens’ plan would subsidize a residential battery system by up to 50% and allow businesses to depreciate a system over three years, instead of the usual 15 years.
The Greens say they hope to incentivize up to 1.2 million residential battery systems over five years under the scheme.
A complimentary low-income storage (LISS) program will provide would provide grants to households with an income of less than AU$80,000 per year (US$59,000), additional to the AU$5,000 storage tax credit. The Greens plan for the Australian Renewable Energy Agency (ARENA) to administer the program and then to conduct a review of it in 2020.
The residential solar tax credits will decrease over time, alongside the LISS grant program, from AU$5,000 in the Australian financial year 2016-17, down to AU$1,500 (US$1,100) in 2020-21.
The Greens propose to fund the program through AD$2.75 billion (US$2.02 billion) in savings through the scrapping of an accelerated asset depreciation program currently in place for the purchase of new aircraft and the oil and gas industry. The Greens’ battery storage program has been calculated at costing AU$2.9 billion (US$2.13 billion) over five years.
The Greens are currently one of the opposition parties in the Australian federal parliament, and while this means the policy has a limited chance of being enacted into law, it plans to use its substantial bargaining power in the Senate to progress the policy, the Guardian Australia has reported.