Budget 2022: Home and Business Battery Scheme to Continue. Changes to Jacana Energy’s Premium Feed-in Tariff

6 May 2022

Budget 2022 highlights the Territory Labor Government’s continued investment to deliver affordable, clean, reliable and secure energy for Territorians. 

This Budget will see the continuation of the successful Home and Business Battery Scheme, creating further jobs for Territorians and supporting the stability of the grid as it transitions to renewable energy.

A further $2.4 million has been allocated to extend the scheme in 2022-23, which will enable more than 400 additional households and businesses to access the program.

The Home and Business Battery Scheme provides Territory homeowners and businesses with assistance to purchase a battery to suit their needs with a grant of $450 per kilowatt hour of battery system capacity, up to a maximum grant of $6000.

More than 1330 Territory households and businesses have applied for the scheme, with more than 1000 applications approved worth $6 million in grant funding.

Spread out right across the Territory, the total value of approved works is $23 million.

Installing a battery means that rather than exporting electricity to the grid, the household or business is able to store the electricity for future use, a major cost saving measure. Batteries also improve the security and reliability of the system by helping to smooth out demand from the grid.

Budget 2022 will also see changes to Jacana Energy’s premium feed-in tariff (FiT), which closed to new entrants in April 2020. 

The premium FiT (26.65 cents per kilowatt hour incl. GST) was originally designed to incentivise Territorians to install solar at a time when the industry was in the early stages of development and installation costs were high. Since that time, costs to install solar have drastically declined.

From 1 July 2022, customers who have been on the premium FiT for four years – which is the average time it takes to recover the cost of the initial investment of a rooftop solar system – will transfer to the standard FiT (9 .13 cents per kilowatt hour incl. GST).

Under the standard FiT, customers will continue to save money on bills, not only from generating solar for their own energy use, but also through receiving credit for any unused electricity that the rooftop solar system sends back to the power grid.

Moving forward, the savings generated from this change can be invested in wider initiatives, including community batteries, virtual power plants (VPPs), and community batteries for social housing. This would build on work currently being undertaken through existing initiatives including the Alice Springs Future Grid project.

Quotes from Minister for Renewables and Energy, Eva Lawler:

“We want Territorians to have access to the latest and best technology as we build a stronger and more resilient power system for Territory households and businesses.

“Budget 2022 sees the Territory focus on renewables – supporting our grid, and reaching our 50% target by 2030. We want clean and affordable power for all Territorians.

“Extending the Home and Business Battery scheme is one way this government is creating stability in our grid and creating more jobs for Territorians.

“The changes to feed-in tariffs will be done progressively to ensure customers on the premium feed-in-tariff have realised significant savings during the time they have has solar installed.”