The Western Australian government has announced a sweeping new $50 million Local Battery Manufacturing Program, designed to accelerate the production of residential batteries in the state and solidify WA’s position as a clean energy leader.
The package, comprising direct grants and low-interest loans, is a cornerstone of the government’s “Made in WA” plan intended to sustain the state’s robust economy, create future-focused jobs, and encourage more manufacturing on home soil.
The initiative arrives as part of a broader state and federal push to enable more households to harness, store, and manage solar energy, with demand expected to surge thanks to the government’s ambitious WA Residential Battery Scheme.
Currently, most battery industry activity in WA is concentrated on commercial, regional, or remote technologies. However, local manufacturers have “expressed strong interest in scaling up residential battery manufacturing when the market becomes stronger”.
The new funding aims to ensure WA businesses are at the forefront as household battery demand grows due to supportive policies and rebates.
Eligible WA battery manufacturers will be able to access up to $10 million in grants, required to be matched on a dollar-for-dollar basis, from a dedicated $30 million fund.
An additional $20 million will be made available in low-interest loans and through the provision of state government land to incentivise major new investments in technology and expanded production facilities.
The state’s $337 million WA Residential Battery Scheme, coupled with the federal government’s $2.3 billion Cheaper Home Batteries Program, is expected to deliver combined support to roughly five times as many households as originally planned under the state-only scheme.
Around 100,000 homes are set to benefit from the schemes, which provide access to rebates and no-interest loans for battery installation.
Synergy customers could receive up to $5,000, and Horizon Power customers up to $7,500, while households may save up to $1,500 annually by installing a battery alongside solar panels.
Premier Roger Cook underscored the government’s commitment, stating: “Building batteries here in Western Australia was a key part of the Made in WA plan my government took to the election.
“It will support our nation-leading battery rebates, which in turn will secure our clean energy future and provide long-term, sustainable cost-of-living relief to tens of thousands of households throughout WA.
“These programs are part of a Budget that will secure our state’s economic future and deliver a future that’s Made in WA.”
Energy and Decarbonisation and Manufacturing Minister Amber-Jade Sanderson highlighted the dual benefit for industry and consumers, stating: “The Residential Battery Scheme and the Local Battery Manufacturing Program are clear examples of the Cook Government ensuring that Western Australians benefit from the energy transition.
“Direct grants and low-interest loans will provide support for local companies to expand to take advantage of the surge in demand for batteries from households wanting to store more of their solar energy for when they really need it.
“The Residential Battery Scheme helps households with ongoing cost-of-living relief while creating the right environment for increased business investment and growth.”
Treasurer Rita Saffioti emphasised the economic and social impact, stating: “This investment is good for business, good for households and good for our economy.
“It’s about supporting local businesses to grow their capacity, ultimately creating more jobs for Western Australians while also keeping power bills lower for households.
“The Local Battery Manufacturing Program is all part of our Made in WA plan, building on the success of returning railcar manufacturing to WA to continue diversifying our economy, supporting jobs and propelling our State forward.”
With the combined might of state and federal backing, Western Australia stands poised to lead in residential battery adoption, supporting a cleaner grid, lowering costs for households, and fueling local industry growth.
The government’s multipronged approach is set to both capture immediate economic opportunities and deliver lasting benefits for WA communities.
