Victoria’s battery rebate program has been one of the most successful energy policies in the country. It’s helped over 40,000 households install batteries, created a fleet of distributed storage that’s actively stabilising the grid, and proven that targeted subsidies can accelerate technology adoption at scale.

So why on earth don’t we have a national version?

The case is overwhelming

Australia has a grid problem. We’ve got enormous amounts of rooftop solar generating power during the day when demand is moderate, and then massive demand peaks in the evening when solar production drops to zero. The mismatch costs billions in grid infrastructure — peaking gas plants, transmission upgrades, and network reinforcement — all to handle a few hours of evening demand.

Home batteries are the most efficient solution to this problem. They’re installed at the point of consumption, require zero transmission infrastructure, and they’re paid for primarily by the homeowner. Every battery installed saves the grid money.

The Grattan Institute estimated that distributed batteries could save the electricity system $2.4 billion over the next decade if deployed at scale. AEMO’s Integrated System Plan relies on massive growth in distributed storage. Everyone agrees batteries are essential. And yet, the federal government has no program to support them.

What Victoria got right

Victoria’s program offered up to $4,000 towards a battery installation, means-tested to ensure lower-income households got priority. It was simple, well-promoted, and delivered through existing installer networks.

The result? Battery installations in Victoria surged. Installers built expertise. Supply chains developed. And the cost of batteries in Victoria dropped faster than in other states because of the volume.

This is textbook market-making policy. You subsidise the early adopters to build scale, drive costs down, and eventually the subsidy becomes unnecessary because the product is affordable on its own merits. We did exactly this with solar panels a decade ago, and it worked spectacularly.

The counter-arguments are weak

“We can’t afford it.” The federal budget can find billions for fossil fuel subsidies but not a few hundred million for batteries? The money spent on battery rebates comes back in reduced grid infrastructure costs. It’s not spending — it’s investment.

“Batteries are for wealthy homeowners.” They are, partly, because they’re expensive. That’s literally what a rebate fixes. Victoria targeted lower-income households specifically. A national program could do the same.

“The market will sort it out.” It will, eventually. But “eventually” means another decade of building expensive peaking infrastructure that we won’t need once batteries are widespread. Every year of delay costs money.

“Technology is still evolving.” So was solar technology when we started subsidising it. If you wait for perfect technology, you wait forever. Current battery technology is mature enough for residential deployment. It’s going to get cheaper and better, but what’s available today works perfectly well.

What a national program should look like

Keep it simple. Here’s what I’d propose:

A $3,000-5,000 rebate per household for battery systems of 5kWh or larger, means-tested so households earning under $150,000 get the full amount with a sliding scale above that. Available to anyone with existing or concurrent solar installation.

Funded at $500 million over four years, which would support roughly 100,000-150,000 installations. That’s enough to meaningfully shift the market without blowing the budget.

Pair it with mandatory VPP participation for the first two years, ensuring the subsidised batteries provide grid services. This makes the economic case even stronger — taxpayer money funds batteries that then reduce grid costs for everyone.

And for the love of it, make the application process simple. One online form, pre-approved installers, and rebate paid directly to the installer so the homeowner gets the discount at point of sale. Victoria’s system works this way and it’s brilliant.

The politics

Here’s my cynical take: a national battery rebate hasn’t happened because batteries aren’t visible. Voters can see solar panels on roofs. They can see wind turbines on hills. But a battery in a garage doesn’t photograph well for a press release.

Both major parties claim to support the energy transition. Both acknowledge the grid needs more storage. Neither has committed to a national residential battery program. It’s a policy that makes sense economically, environmentally, and practically. It just needs political courage.

I’m not holding my breath. But I’ll keep making the case, because the numbers don’t lie, and every month we delay makes the eventual transition harder and more expensive than it needs to be.