Western Australia’s expanded residential battery subsidy program explained: subsidy, loan details and full application guide

In June, the Western Australian government announced more details of the highly anticipated WA Residential Battery Scheme. The scheme aims to work in synergy with the federal government’s Cheap Home Batteries Program to vigorously promote the popularization of residential energy storage systems by providing one-time subsidies and interest-free loans. This move will not only help ease the cost of living pressure on Western Australian families, support local businesses and employment, but also have milestone significance in ensuring the stability of the power grid and accelerating energy transformation.

The scheme, with a total budget of A$337 million, is expected to benefit up to 100,000 households and add approximately 1GWh of energy storage capacity to the grid.

Core incentive policy: double subsidies and interest-free loans

In order to make battery energy storage systems affordable for more households, the state government and the federal government have jointly launched generous incentives.

Joint subsidies from the state government and the federal government

The Western Australian state government’s subsidies are combined with the federal program to provide households with attractive discounts. The specific subsidy amount varies depending on the electricity supplier:

Synergy customers:

• State government subsidies: Up to $1,300 (calculated at $130 per kilowatt-hour of battery capacity).
• Joint subsidies: In the first year of the program, combined with federal government assistance, a household installing a 10kWh battery can receive a total subsidy of up to $5,000.

Horizon Power customers:

• State government subsidies: Up to $3,800 (calculated at $380 per kilowatt-hour of battery capacity).
• Joint subsidies: Similarly, in the first year, combined with federal assistance, a total subsidy of up to $7,500 can be obtained for installing a 10kWh battery.

It’s worth noting that compliant batteries with a capacity of more than 10kWh can still receive state government subsidies capped at $1,300 (Synergy) or $3,800 (Horizon Power).

Interest-free loan support

For households with a combined annual income of less than A$210,000, the government is also offering interest-free loans of up to A$10,000, which can be repaid over up to 10 years. This loan can be used not only to purchase batteries, but also to pay for new or upgraded equipment installed with the batteries, such as inverters and solar panels.

Key participation condition: Joining a Virtual Power Plant (VPP)

Mandatory requirement: All households wishing to receive subsidies and/or loans must agree to connect their battery system to a Virtual Power Plant (VPP).

The role and advantages of VPP:

• Stabilizing the grid: VPP can connect the independent battery systems of thousands of households into a unified, dispatchable “cloud power plant”. When the power consumption peaks or the grid needs support, VPP can centrally call on the clean energy stored in these batteries and transmit it back to the grid, thereby improving the stability and reliability of the entire system.
• Household benefits: In return, households participating in VPP can sell their stored electricity to the market to gain economic benefits. This not only helps households recover the cost of battery investment faster, but also makes them part of the energy market.
• Energy transformation: VPP is a key technology for decarbonizing the grid and maximizing the use of renewable energy. Through VPP, excess electricity generated by household solar systems during the day can be stored and used by the community when needed, thereby reducing dependence on traditional fossil fuel power generation.

All customers can choose to join the VPP product provided by their electricity retailer (Synergy or Horizon Power). In addition, Synergy customers can also choose a third-party VPP product provided by their battery supplier that meets certain criteria.

Eligibility and Requirements

Before you prepare to apply, please carefully check the following key eligibility criteria. Please note that the final terms and conditions have not yet been released.

Applicant and Property Requirements

• Geographic location: The property must be located in Western Australia.
• Electricity account: Must be a Synergy or Horizon Power electricity account holder.
• Property ownership: The property cannot be owned by a state, federal or local government entity, as well as a bank, financial institution, telecommunications, mining/resources company.
• Application restrictions: Only one application per property address.
• Home office: A home business that uses the residence as a principal residence is eligible.
• Rental property: Long-term rental properties are also eligible, but both the landlord and tenant must agree to install the battery.

Equipment and Installation Requirements

• Compliant equipment: The installed batteries and inverters must be on the official “Approved Equipment List” (which has not yet been published).
• Certified suppliers: Battery retailers and installers must be certified suppliers registered with the program (the certification list has not yet been published).
• Technical standards: The installation must meet technical specifications, including being configured to participate in the VPP.
• Retroactive: Battery systems installed before the official launch of this program will not be eligible for subsidies or loans.

Additional requirements for interest-free loan applicants

• Credit Check: Loan applicants will be subject to a credit check and careful credit assessment by Plenti, the program administrator.
• Loan Administration: Plenti will be responsible for all loan applications, approvals, repayments and ongoing management.
• Loan Amount: Loan amounts will range from $2,001 to $10,000.
• Fees: As long as the borrower repays on time, there will be no fees. However, for overdue accounts, late payment fees may be incurred to cover administrative costs.

Important Dates and Management Agencies

• Program launch time: The program will officially start on or before July 1, 2025.
• Application opening time: Applications are not open yet. Any company or individual who takes action before the official details are announced will do so at their own risk.
• Program administrator: The entire program (including the loan component) will be managed by Plenti Pty Ltd, a third-party service provider with professional capabilities.

Information source: https://www.wa.gov.au/organisation/energy-policy-wa/wa-residential-battery-scheme https://www.wa.gov.au/government/wa-residential-battery-scheme-information-applicants