The proposal would provide tax deductions to promote the take-up of solar home battery systems to support renewable energy production. The proposal has three policy options each starting 1 July 2024 and closing 30 June 2034. The system must be designed and installed by a Clean Energy Council accredited designer and installer and the capacity must not exceed 100 kilowatts (kW).

Option 1

Eligible households could access the policy option detailed below.

• From 1 July 2024 - 30 June 2034, a tax deduction of up to $3,500 or 50% of the cost of home battery system installations (whichever is lower).
• From 1 July 2024 - 30 June 2034, a tax deduction of up to $1,750 or 25% of the cost to upgrade from an existing home battery system (whichever is lower).

Option 2

Eligible households could access the policy options detailed below.

• From 1 July 2024 – 30 June 2029, a tax deduction of up to $3,500 or 50% of the cost of home battery system installations (whichever is lower).
• From 1 July 2029 – 30 June 2030, a tax deduction of up to $3,000 or 43% of the cost of home battery system installations (whichever is lower).
• From 1 July 2030 – 30 June 2031, a tax deduction of up to $2,500 or 36% of the cost of home battery system installations (whichever is lower).
• From 1 July 2031 – 30 June 2032, a tax deduction of up to $2,000 or 29% of the cost of home battery system installations (whichever is lower).
• 1 July 2032 – 30 June 2033, a tax deduction of up to $1,500 or 22% of the cost of home battery system installations (whichever is lower).
• 1 July 2033 – 30 June 2034, a tax deduction of up to $1,000 or 15% the cost of home battery system installations (whichever is lower).
• From 1 July 2024 – 30 June 2029, a tax deduction of up to $1,750 or 25% of the cost to upgrade from an existing home battery system (whichever is lower). Then the deduction would step down in similar fashion to new installations as listed above.

Option 3

Eligible households could access the policy option detailed below.

• From 1 July 2024 - 30 June 2034, a tax deduction of up to $5,250 or 75% of the cost of home battery system installations (whichever is lower).
• From 1 July 2024 - 30 June 2034, a tax deduction of up to $3,500 or 50% of the cost to upgrade from an existing home battery system (whichever is lower).

Indexation (using the consumer price index (CPI)) is to be applied to the thresholds from 1 July 2025 onwards.

Eligibility Criteria

Applicants are required to:

• live in a property that has solar panels with a capacity equal or greater than 5kW,
• have no existing energy storage system (unless upgrading),
• be owner occupiers, and
• have not received a rebate through other schemes (including from State, Territory, and local governments).

The request sought to have modelled the national take up rate of solar battery systems and the average cost of a solar home battery system (including installation) per kilowatt-hour (kWh) over the medium term. It also sought a breakdown of existing solar and battery subsidy schemes by state and territory.