We now have TWO battery subsidies !

With Labor just winning the Federal election, WA now has two battery subsidies coming.

Before I go into the details, please don't rush off and try and 'lock in an installation'
You'll just be handing over a sizeable deposit for no guarantee of anything.

The WA Scheme is still evolving and the WA Government has stressed that...
* No battery suppliers or installers have yet been selected for involvement in the WA Battery Scheme.
* A list of approved equipment for the WA Battery Scheme is still to be confirmed.

For example, it's possible that only NETCC approved retailers are allowed to sell batteries under the scheme.
Or it might be some other type of vetting process. It's unknown for now.

WA rebate scheme
$500 rebate per kWh of battery storage with a $5,000 cap.

National battery subsidy scheme
Somewhere between $350-$372 per kWh of useable battery storage.
Let's call it $360 per kWh for now.

Example - 10kWh usable battery.
$5,000 from WA scheme + $3,600 from National scheme = $8,600 in total subsidies.

Example - 16kWh usable battery
$5,000 from WA scheme + $5,760 from National scheme = $10,760 in total subsidies.

Only one time allowed?
It's quite possible that you will only get one hit at both subsidies.
That would mean going a bit larger than you initially thought might be the best strategy.

How much does a battery cost?
It depends.
A standard 10kWh battery, sufficient for many to power their homes overnight, about $11,000 installed.
For something better quality, with more features like blackout protection, maybe $14,000 installed.
Either way, with an $8,600 subsidy that makes a battery that should save $1,000 to $1800 a year pretty great value.

I just did a costing for someone who wanted to expand their existing Sigenergy battery stack with an extra 16kWh of storage.
That's when it hit home to me how utterly ridiculous this double-dip subsidy is, especially for people who are simply expanding.
Their 16kWh extra battery will cost $11,500, and the subsidies came to about $10,600.
$900 for an extra 16kWh of battery storage?? That's just wrong.

I would love to see a change to this WA rebate for any future tranches.
This first 19,000, sure do as promised, that's baked in...
...but after that, I'd like to see half the WA subsidy offered to double the people.

A 10kWh battery would then attract about $6,100 in combined State and Federal subsidies.
Still an absolute bargain and easy quick profit-maker for consumers.
Twice as many people, 38,000, could then benefit per tranche, and the more batteries on the grid, the more stable the grid is.
😂 Doesn't hurt the local solar industry either because it will keep us busy for years to come.

There would have to be some tightening of the interest-free loan eligibility of course if they did this.

Quotes, not yet until all details are known, but estimates, of course.
Feel free to contact us for an estimate on a range of different battery options.
We can include new solar panels, which also come with a separate hefty subsidy as well.
We won't formally quote you yet...how can we until all the scheme details are announced?

Interest-free WA Government loans.
Low and Middle income earners can apply from an interest free loan from $2,000 to $10,000.
That can be used for a total solar overhaul, panels and inverter and battery.

When does it all start?
The Federal scheme outline says you can install your battery now and leave it off until the scheme is active.
The WA scheme says you have to wait until the scheme details are released and the scheme starts.
East Coasters will be doing that now, but in WA it makes sense to wait to get BOTH subsidies.
The WA scheme is announced as starting at or before July 1st.

Will you miss out on the WA rebate if there are only 19,000 Synergy customer spots.
Possibly, especially in the first tranche of 19,000.
You are as close to the front of the rebate queue now as anyone else, even those who rushed to lock in orders weeks ago.
When application details are released and applications start, that's the time to get in quick.

Will WA release more rebates than 19,000.
The maths on their budget of over $350 million, suggests 'yes'. Probably 3 x 19,000 at least.
On the other hand they may decide that the Federal scheme is enough and stop at one tranche.

What is 'useable' battery storage?
The Federal scheme specifically indicates 'useable' storage as the criteria for subsidies.
Some batteries may be advertised as a 10kWh battery, but only 9.5kWh is useable.
The other 0.5kWh is reserved to stop the battery being drained too deeply and reduce its life expectancy.
Many other batteries will have a useable capacity that's the same as their advertised rating.
The manufacturer has added a 'safety buffer' of additional storage on top of the rated amount.

If I get a battery will I have power to my house during a blackout?
Not necessarily.
Most batteries have this function but require additional,often quite expensive equipment, to be installed.
There's also usually a few hours work by an electrician at your switchboard(s) to make it all work.
Grid power in Perth is very stable (usually) and more and more batteries are only going to improve that grid stability.

Can I AC Couple a battery without solar?
Yes...but it appears you won't be eligible for the Federal battery subsidy.
The concept is simple. You connect a battery and inverter to the switchboard.
You charge the battery from grid power off-peak (e.g. 8 cents/kWh).
You then power your home from the battery for the rest of the day.
Perfect for renters who aren't allowed to install solar panels.
I'm told if there's no solar on the house at all, then the Federal subsidy on the battery will not be allowed.
Just to clarify this is not the same as AC Coupling a battery alongside an existing solar inverter and panels.
That will be fine for the subsidy because you have solar.

How will the two rebates schemes operate?
The Federal scheme seems to be fairly easy to predict and will operate much the same way as the existing panel subsidy (STCs).
The retailer will provide an up-front discount on the battery subsidy and then claim it back.
The system is very fast and efficient with the panel scheme with same day payment to the retailer after installation.
The battery system should be the same and therefore not impact retailer cash flows.

The WA rebate scheme is likely to be entirely different and I have some ideas as to how it might work.
I think there will be an online application done by the retailer with a pre-approval given instantly.
There will be an installation deadline given..let's say 2 months.
This should restrict retailers from hiring hundreds of people to simultaneously login and snap up the available 19,000 slots.
There's only so many installs even the largest retailers can achieve within 2 months !!

Once the installation has been completed the retailer submits proof of invoice, install payment and gets paid the rebate.
This presents a very unpleasant risk of the retailer having to fund the rebate from cash flow for weeks, maybe months.
That would kill them off very quickly, so the rebate will have to be paid in a timely manner.
Alternatively the end user may pay the retailer full price and then get paid the rebate to themselves.
Administratively this is much less appealing to the Government's agent because it means dealing with 19,000 people instead of maybe 150 retailers.

Other news that's relevant to battery subsidies.
10kW inverters on single phase
From July 1st if the suggested changes outlined in this draft from Western Power come to be, we shall be allowed 10kW(kVA) on single phase.
This might mean a 10kW inverter or 2 x 5kW inverters.
It also says that there will be a 5kW export limit on not just single phase, but 3 phase as well.
Up until now the export limit was 1.5kW.
However what is not known is whether Synergy will change their feed in tariff payment limit.
As it stands if the inverter total capacity is greater than 5kW then there is no feed in tariff payment.
If that stays then you will have a 10kW inverter, export limited to 5kW with no payment at all on that 5kW of export.
Who cares about export when you have a battery to fill and a DEBs payment of 2 cents per kWh anyway?

For those people who have a 5kW inverter and want to replace it with a 10kW single phase model, it's not a simple swap.
Your AC and Earth cables and breakers will all have to be upgraded to carry the higher current of a 10kW inverter.


Solar4Ever have been selling and installing solar in Perth, WA since 2011.

(08) 9467 9655

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This review was written by Andrew MacKeith, Solar4Ever service manager since 2011.