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Federal Budget 2025-26 draws mixed reactions on clean energy support

10 Apr, 2025
Household battery systems surge in popularity, growing 30 per cent since 2023



The Australian government’s 2025-26 Federal Budget has drawn praise for its renewable energy investments but faced criticism for lacking targeted support to help households adopt clean energy technologies.

While the Budget allocates billions to grid modernisation and green industries, advocates argue more is needed to address barriers facing renters, apartment dwellers, and low-income households.

The government committed $2 billion to expand the Clean Energy Finance Corporation (CEFC), aiming to unlock $8 billion in private investment for renewable energy and low-emission technologies.

A further $3 billion was allocated to green metals production, including $2 billion for transitioning aluminium smelters to renewables and $1 billion for green iron development.

The Future Made in Australia Innovation Fund will direct $750 million to green metals, $500 million to clean energy manufacturing, and $250 million to low-carbon fuels.

For immediate cost-of-living relief, households and small businesses will receive $150 in electricity bill rebates from July 2025, distributed in two $75 instalments.

This follows 2024’s $700 rebate for Western Australian households and $725 for small businesses.

While industry groups welcomed the focus on large-scale renewables, Solar Citizens highlighted gaps in supporting decentralised energy solutions.

CEO Heidi Lee Douglas noted that 60 per cent of Australians lack access to rooftop solar due to renting or living in apartments, urging policies to address these inequities.

The Clean Energy Council echoed these concerns, advocating for a national home battery rebate to help households store solar energy and reduce grid strain.

Currently, only 4.5 per cent of solar-equipped homes have batteries, despite their potential to lower evening peak demand driven by fossil fuels.

Advocates called for targeted measures, including:

  • Mandatory energy efficiency standards for rental properties, paired with tax incentives for landlords to install solar.
  • Subsidised energy assessments and upgrades for apartment buildings, including EV charging infrastructure.
  • Federal rebates for home batteries, which the Australian Energy Market Operator estimates could stabilise the grid if one million systems were deployed by 2030.

The Budget’s focus on corporate renewable investment contrasts with its limited direct support for household energy transitions.

As the election approaches, stakeholders emphasise that broader access to clean energy technologies remains critical for long-term cost-of-living relief and grid resilience.

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